Five years ago when I graduated from college, I did the "normal" thing buying a house and new car on credit. With big monthly payments, $500 in savings, and a high-risk job in the technology field I was completely stressed out and miserable. It was a big mistake, but turned out to be a blessing in disguise. Within weeks I had begun manageing my budget in detail, and had but together a detailed plan to get out of debt and start building wealth. I wanted to have interest working for me instead of against me.
About two years ago I began to dream of early-retirement. I could obtain independence from my job, and be free to do whatever I want with the rest of my life, travel the world, go back to school, or try my hand at a writing career.
5 years ago:
•Car - Value $20k , Loan $19k
•House - Value ~$140k, Mortgage $138k
•Retirement funds - $3k
•Emergency fund - $500
•Net worth - $6.5k
Current Stats:
•Car - Value $10k , paid for
•House - Value ~$150k, Mortgage $82k
•Retirement funds - $94k
•Emergency fund - $25k
•Net worth - $197k
Goal:
•Contribute $20k per year to retirement funds. I will eventually switch over and start putting more into after-tax investments. I haven't made up my mind when the right time is to do this.
•Pay off house by age 32 (I want the flexibility and security of low fixed expenses. Yes, I know I could get a higher return investing more in stocks.)
About two years ago I began to dream of early-retirement. I could obtain independence from my job, and be free to do whatever I want with the rest of my life, travel the world, go back to school, or try my hand at a writing career.
5 years ago:
•Car - Value $20k , Loan $19k
•House - Value ~$140k, Mortgage $138k
•Retirement funds - $3k
•Emergency fund - $500
•Net worth - $6.5k
Current Stats:
•Car - Value $10k , paid for
•House - Value ~$150k, Mortgage $82k
•Retirement funds - $94k
•Emergency fund - $25k
•Net worth - $197k
Goal:
•Contribute $20k per year to retirement funds. I will eventually switch over and start putting more into after-tax investments. I haven't made up my mind when the right time is to do this.
•Pay off house by age 32 (I want the flexibility and security of low fixed expenses. Yes, I know I could get a higher return investing more in stocks.)