Well, absence (distance) might make the heart grow fonder for existing relationships, but for new relationships it's a killer. I got the "I'm not into the beans and rice lifestyle" from Rapunzel - hey it's not about 'beans & rice'... it's about Living Below Your Means so you can save for Financial Independence. Some call it ERE (Extreme Early Retirement). Some call it FIRE (Financial Independence leading to Early Retirement). All while LIVING - enjoying life - and experiencing happiness. You can't BUY happiness... it's a state of mind, but saving, and doing what you want to do, enjoying the outdoors, etc.... sounds like happiness to me. ;-)
It's all the same idea: work hard for 5-10 years saving more than 50% of your take home, so you can get off the wage-hamster-wheel if you want, living off the dividends/growth of your savings (your 'FU stache') and withdrawals from things like 5-year Roth-IRA conversions (convert a portion of your rollover IRA to a Roth IRA, and in 5 years you can withdraw that 'conversion' amount tax free, and it won't count toward taxable income). All strategies to decrease taxable income, save pre-tax dollars toward early retirement, and have the freedom to do-what-I-want: Travel, do things with my sons, collect the National Parks, grow vegetables... whatever!
A funny thing happened a few weeks ago...
My realtor called - a great guy who I've worked with on selling homes, and searching for new homes. I had been doing a lot of research on my credit score, along with all this work on FIRE, and had come to the conclusion that I won't be eligible for a loan for another 4 years (thank you 2011 short-sale) and am therefore doing just fine renting for the next 4 years during which time I'll reach my FIRE date. I told my realtor about all this, and said thanks, but I don't think I'll need him for at least another 4 years. He thanked me and moved on. A few days later, I decided to casually check my 'target area' to see if any homes were available that might make either good home-bases, or rental houses, and found a house that looked... interesting. After researching, I knew I had to see it! The irony wasn't lost when I called my realtor back, and asked "How can I find out for sure whether or not I could get approved for a home mortgage?" One thing led to another, and by weeks end I had made an offer 5% below the asking price on the house in question.
Ironically, the seller ACCEPTED! So I knew I'd bid too high. Hopefully the home inspection would pick up some things...
It did - $25K worth of repairs needed - some so the house would appraise for the offer price. Haggling ensued, because at this point we're "negotiating", and because of the late-date with winter onset looming, the seller accepted our amended offer $39K below original list price.
Awaiting appraisal... and pondering: Is buying a home a 'sucker play', or will the mortgage tax benefit, freedom to grill, freedom to dig holes & grow things in my own yard outweigh the extra expense of taxes & utilities currently covered by rent?
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