It has been a busy first third of the year.
So, basically, I have completed my emergency fund for the moment. It is currently 4-5 months in size. My wife had competing goals furniture and an emergency fund of eight months. The compromise was that we would bring it up to 4-5 months and if I were to lose my job, she could work full time and we would be able to stretch the EF to probably at least a year.
My retirement savings is just chugging along. I am at 50% of my 401(k) being funded. I'll probably have this finished at end of September. After this and the furniture, we will probably start move to college savings and reevaluating if we want more money in the EF.
Next week, I will close on my refinance for my mortgage - 4.5% for 15 years. I know there is disagreement on the best type. Maybe I should have gotten a 30 year and paid it off like a 15 year. This would have given me more flexibility and I could have bought points to have the same interest rate as my 15 year.
I think the real reason is that I got a taste of being out of debt and I like it. I dream of my life without a house payment and think of all the things I could do with that extra money. I also think of how much freedom I can have. I would no longer need a job to pay the mortgage. I could pursue my interests and be less worried about compensation.
Also, I really do want to get into real estate and charity without a risk to my family. And I really believe that pursuing some of these endeavors really means having no house payments.
Just the risk to family of having a house payment plus some mortgage payments on investments properties seems more of a risk them I am willing to take. I do fully understand leverage and good versus bad debt. I also believe you don't get involved with something unless you're in for the long haul
If you didn't have any debt or a house payment, how would that change your life? Your family's?
It's just become a very powerful idea from me.
Goals Review – April
April 30th, 2009 at 03:20 pm
April 30th, 2009 at 03:27 pm 1241101677
April 30th, 2009 at 04:27 pm 1241105240
April 30th, 2009 at 04:37 pm 1241105877
I am just glad you thought it through. The *right* answer is different for everyone. I think some people are so gung ho on paying the house off they usually don't think of the risks of taking on a long-term higher payment, is all. We've done both and the kicker is with time we have decided against the *risk* of higher payments. BUT the decision is yours!
Congrats on the great interest rate, and all that progress!
May 1st, 2009 at 12:22 am 1241133737
May 1st, 2009 at 04:24 pm 1241191454