Frugality_of_Apathy
Full time employment: Posting here.
- Joined
- Jul 9, 2008
- Messages
- 622
So I'm 26 I've got a couple degrees and have only had a serious job for 2.5 years, and if this is a preview of the next 40 years I might as well shoot myself now. After working about a year I saved enough and was making enough to buy a fixer-upper type 2 bedroom 1 bath 900 sq.ft house, that was essentially a complete redo, for $145,000. So I tore it down to the studs, reinforced where necessary, rewired and replumbed everything, all that's left is the bathroom and one bedroom of this 3 bedroom 1100 sq.foot house. Working sucks and I wish to be done. I rarely buy anything, I'm never going to get married or have kids so why should I have to work for 40 years? My current job is working out alright, but I just got finished interviewing as a field engineer for the oil industry and if I end up getting the job I'll be making $62,000 base plus bonuses making the total between 72,000 and 96,000 plus during the training I would be living for free in dorms and if I opt for an international assignment I could be making 1.75 times the standard amount plus all my living expenses would be payed.
The Stats:
Negative:
-$20,000 @6% in student loan
-$114,000 @6.5%mortgage
-$14,000 @7.5%2nd mortgage
-$12,000 @19% in credit card debt used to finance the repairs on the house.
Positive:
~$210,000 house
$500/month roommate
$2,500 401K Down 15% so far this year!
$2,000 Roth IRA $47,000/year job + $3000 yearly bonus + $1500 401K contribution
Checking: $1500
Savings:$28
Net Value:
Roughly $50,000
In January I had $20,000 in credit card debt from the house so I've been paying it off pretty rapidly. With my roommate's contribution I bring in $3500 a month. If you consider money going to the mortgage and paying off debt saving then I'd be saving at a rate of 80% after taxes!
Now naturally my first goal is to pay off the credit card debt which should be done by the end of the year. After that I'll take a a breather for two months and just build up my savings account to $6,000. Then it's time to make the tough decisions.
Do I invest in the system that has given me no luck so far? The 401K was only up one month in the last year and a half, all of the options I am allowed to invest in have been down all year so there is nothing I could have done to not lose that money. In 1999 my uncle died and left me $40,000 in his IRA. I decided to leave it there because I thought the mutual fund guys had a clue about what there job was. so in fall 2000 when I was ready to spend the money on college I had a whopping $17,000.
Or do I pay down my mortgage and rent out the house?
I could get $1100 to $1200 per month if I rented out. If I kept paying as much as I currently do (snowballing) assuming I never get a raise I could have all of my debt payed off and own the house in 5.3 years. At that point if the rent didn't increase I'd be taking home about $1000 a month from the property while thevalue of the house would be increasing as well. If the house value only goes up 7 percent a year I'd be making a 14% ROI.at This point I could use the money I'm making to buy more houses and rent them out as well. Even assuming I don't get the better paying job I don't seen how I shouldn't be retired within 10 years.
The Stats:
Negative:
-$20,000 @6% in student loan
-$114,000 @6.5%mortgage
-$14,000 @7.5%2nd mortgage
-$12,000 @19% in credit card debt used to finance the repairs on the house.
Positive:
~$210,000 house
$500/month roommate
$2,500 401K Down 15% so far this year!
$2,000 Roth IRA $47,000/year job + $3000 yearly bonus + $1500 401K contribution
Checking: $1500
Savings:$28
Net Value:
Roughly $50,000
In January I had $20,000 in credit card debt from the house so I've been paying it off pretty rapidly. With my roommate's contribution I bring in $3500 a month. If you consider money going to the mortgage and paying off debt saving then I'd be saving at a rate of 80% after taxes!
Now naturally my first goal is to pay off the credit card debt which should be done by the end of the year. After that I'll take a a breather for two months and just build up my savings account to $6,000. Then it's time to make the tough decisions.
Do I invest in the system that has given me no luck so far? The 401K was only up one month in the last year and a half, all of the options I am allowed to invest in have been down all year so there is nothing I could have done to not lose that money. In 1999 my uncle died and left me $40,000 in his IRA. I decided to leave it there because I thought the mutual fund guys had a clue about what there job was. so in fall 2000 when I was ready to spend the money on college I had a whopping $17,000.
Or do I pay down my mortgage and rent out the house?
I could get $1100 to $1200 per month if I rented out. If I kept paying as much as I currently do (snowballing) assuming I never get a raise I could have all of my debt payed off and own the house in 5.3 years. At that point if the rent didn't increase I'd be taking home about $1000 a month from the property while thevalue of the house would be increasing as well. If the house value only goes up 7 percent a year I'd be making a 14% ROI.at This point I could use the money I'm making to buy more houses and rent them out as well. Even assuming I don't get the better paying job I don't seen how I shouldn't be retired within 10 years.