I’ve spent my 20s (through to my 30s, if I’m honest) causing a financial disaster. There wasn’t a loan or type of credit I didn’t like. In my 30s, I took control of paycheck to paycheck life was miserable and spent years cleaning up the mess. I am now over 40 and have been debt free for 4.5 years. I’m so guilty that things that remotely smell of debt (even when they aren’t) are radically avoided. Basically, I keep to my budget. When I blow it, I’ll show myself some grace and fix it in the next month or two. I get pretty good at living and sticking to the debt free lifestyle.
But it is not enough. I need growth.
I’ve been investing in retirement all the time, but it’s hard to find the motivation to save more for it. I’m behind but not so much as to worry. I need a boulder to push. A mountain to climb with very clear middle and end points.
As I said in a previous post, we are renting out in Texas for a year to find out the location of the land. My husband and I figured we would take the money from the sale of our California home and pay cash or nearby for a home in Texas. I plan to buy a moderately to moderately beautiful house. Maybe 2,500 square meters? Maybe a nice kitchen?
But then it hit me, we live in a 1,200 m² house from 1959, which now urgently needs maintenance and renovation. No, not great, but we were fine. Do I really have to DOUBLE this space?
Ah. Maybe not.
We are considering downsizing our Texas dream home to something that is only slightly better than what we are now. Any extra money we can save will be used to buy a second home / condo / townhouse as a rental property. No, we have never owned a rental property and have exactly ZERO experience. Of course we’d hire a management company (we’re not that stupid) and my husband can do all the repairs on the rental himself since he’s a licensed contractor. Our goal would be to pay the rent in cash (or very close to it). If there weren’t a tenant, it wouldn’t endanger us financially. It looks good on paper … but I’ve been burned by “on paper” once or twice (or a million times) in my life.
With a clear goal and a clear start and end point, I’m looking forward to saving again.
Thoughts?! Are we crazy Stupid? Both?