As I promised in my introduction on the 'Hi I am ' Board, here is our little story so far.
First of all, thanks to all you guys for your posts and for the informed, intelligent and supportive nature of this site. Cheers!
Here we go: Feedback, input, thoughts and advice requested from the 'been there, done that' crew and support from those on the same path as us All are very welcome.
OK. First the facts:
Residence: 770,000, with 345,000 outstanding on the mortgage (Currently at 2.25% with 14 years remaining)
Rental Property (actually our first house together): 415,000, with 123,000 outsanding on the mortgage (Currently at 3% with 15 years remaining)
Thus, net equity in properties: 717,000
Stock Portfolio: 230,000
Emergency Cash Fund: 75,000 (equals approx 1 year expenses in case of job losses)
Other Saving Funds: 65,000
Child Education Fund: 47,000
Total so far: 1,134,000, so not doing too bad I suppose.
Using the 'moneycentral' ratio calculation I saw in another post, it works out at around 75% of our lifetime earnings to date.
We have no personal loans and no credit card debt (all balances paid in full EVERY month). We have no car loans as we have no cars.
Our gross income is around 125,000 per year from salaries. 16,000 comes from the rental property which basically covers the mortgage payments, property taxes, insurance and minor maintenance.
We are continuing to build up our wealth by adding to the portfolio from monthly savings. We are also considering buying a further rental property by using some of the 65,000 in the 'Other Savings Fund' as a sizeable deposit resulting in only around 50% mortgage
On the lifestyle side, we are by nature 'LBOM' types. We live very nicely, enjoying regular meals out and trips at least 3 times per year.
To achieve this though, we do not indulge in wasteful spending, luxury (in our view) spending or impulse purchases. We are generally frugal, without being miserly; we buy the best quality goods we can afford that will last a long time rather than simply the cheapest; we clip coupons, wait for sales and bargain mercilessly for the best deals. We pack lunches to work and ride public transport.
We both enjoy work and could not quit working completely just yet. We would, however, love to be able to dictate our own terms a little more, take a slower pace, working part-time or on a consultancy basis as and when interesting opportunities came along, all with the knowledge that we were financially secure regardless of our actual earnings. That is what we are aiming for in the medium term at any rate (say within 10 years).
Before I go on too long a ramble, I will stop here and look forward to you comments and feedback.
Hope I have not forgotten anything, but please do ask any questions you feel are necessary
Speak to you soon!!!