Sorry had to brag a little

[SigSaurP229]

Today after 4.5 brutally long years I paid the final balance on my truck.

Now only 1k in cc debt to go and debt free. That will be done by December. Then $1000 per month into savings to buy or build a house all though I won't be doing anything until I can write a check. 72,000 around here buys a decent house. 6 years of rent to go but at least I am paying myself rather than someone else now.

 

[Rocky_Road]

Re: Sorry had to brag a little

Good for you!

But building a new house in the current housing market could be a costly mistake...there are so many great homes out there that the banks are willing to sell you for a fraction of their value.

Talk about a 'buyer's market'!

Happy boating!

 

[Fireman431]

Re: Sorry had to brag a little

Do you realize the boat you could get with $1000 a month?!?

 

[yetiman]

Re: Sorry had to brag a little

Dave Ramsey plan? We're following his plan almost done, BTW congrats

 

[skargo]

Re: Sorry had to brag a little

Congrats! I haven't had a car, or toy payment in 15 years, and it feels good.

 

[SigSaurP229]

Re: Sorry had to brag a little

Actually yetiman. It isn't the Dave Ramsey plan so much as it is I am sick of making payments I just had my 28th birthday and realized I have spent the first 10 years of my life paying on stuff and I am sick of it. No more payments ever I am over it. I have cut my bills now to 1350 per month.

2 bedroom apt on the river $550 per month.
Electric $140 per month
Car Insurance $75
Phone bill and tv $200

The reason for building not buying is I can build and pay for as I go. I am not interested in playing the real estate market My property is paid for and the house on it will be too

Forgot to mention we have a piece of property paid for and improved well and septic I bought from a friend of mine. Its just a vacant piece of land with well and septic though.

Thanks

 

[southkogs]

Re: Sorry had to brag a little

Good job SigSauer. Congrats on getting it done.

 

[aspeck]

Re: Sorry had to brag a little

Congrats Sig ... as good a feeling it is now, it will be even better in December!

 

[rbh]

Re: Sorry had to brag a little

Congrats, that sure must feel great!!!!

Now with the land, are you going to do the guy thing and build the big shop first, back a travel trailer inside to live in, and think about building the big house somewhere down the line????

 

[SigSaurP229]

Re: Sorry had to brag a little

Congrats, that sure must feel great!!!!

Now with the land, are you going to do the guy thing and build the big shop first, back a travel trailer inside to live in, and think about building the big house somewhere down the line????

No Way I have a wife and 7 year old currently I live in a triplex in the country. I have a shop with the Apartment Landlord owns 20 acres including a Barn of which I can have access to even after we move.

They are really great people and I do all the maintenance on the apartments for them labor is free of charge as they provide indoor covered storage space for the boat and continued shop usage anytime I want it.

 

[2 Eagles]

Re: Sorry had to brag a little

Congrats. Sounds like a good plan and a heck of a renting deal.

 

[yetiman]

Re: Sorry had to brag a little

You figured it out 10 years before my wife and I did!!!!! Being young and having a long term plan is great, now build that wealth

 

[dingbat]

Re: Sorry had to brag a little

Waiting to pay cash for your home is costing you money in the long run. You would be much further ahead to take out a 15 year mortgage and apply that $550 a month to pay off your mortgage earlier. Not to mention the tax breaks you get with home ownership.

A $72,000, 15 year mortgage would run you ~$500 a month with a payback cost of $90,720
Six years of rent at $550 ($39.6K) and your $1K a month for the next 72 months ($72.0K) has you spending $1,500 a month on housing related costs and your payback cost is $111.6K

With your plan, you have $1,000 less a month in cash flow and the long term cost of your home is increased by $21K

 

[ezbtr]

Re: Sorry had to brag a little

Great job!! I just did the same last year - tough after a divorce, but all vehicles paid off, pay cards off every month, credit score went up, I can save quite a bit each month, and now I can be a very selective buyer looking for a house or townhouse. Feels GREAT!!

 

[JB]

Re: Sorry had to brag a little

For what you have done and are doing a little bragging is forgivable.

 

[BlkY2k]

Re: Sorry had to brag a little

First off Congrats on sticking to your guns and paying things off. But, I didnt run the numbers but it sounds like Dingbat did and hes right, You may want to rethink your decision to wait 6 years. With rates the way they are you may be better off putting that extra cash into your mortgage, instead of into savings. I think if it were me I would sit down with the bank and run some #s, you might be surprised at the outcome.

 

[Daddypleo]

Re: Sorry had to brag a little

Waiting to pay cash for your home is costing you money in the long run. You would be much further ahead to take out a 15 year mortgage and apply that $550 a month to pay off your mortgage earlier. Not to mention the tax breaks you get with home ownership.

A $72,000, 15 year mortgage would run you ~$500 a month with a payback cost of $90,720
Six years of rent at $550 ($39.6K) and your $1K a month for the next 72 months ($72.0K) has you spending $1,500 a month on housing related costs and your payback cost is $111.6K

With your plan, you have $1,000 less a month in cash flow and the long term cost of your home is increased by $21K

You ain't no Dingbat with those figures!
I've been debt free for 16 years, own my home, my truck and my 2 boats! Pay cash for everything and don't own a credit card. No sense in paying out interest....waste of money!


Congrats SSP! Stick to your guns and you will go far!!