Hayley and I have one month till the birth of our beautiful baby girl and I have recently resigned from one of my work places, thereby kissing farewell to 2 days salary. The craziness continues.
In the past 6 months we have purchased an investment property of around $400,000 and placed an additional $140,000 in a managed investment. We have almost paid off our home but used the equity in our home to finance the loans.
The rental property we purchased came with a delightful tenant (since evicted) who enjoyed avoiding rent payments, boxing holes in doors and taking various illegal substances. In the past month and budgeting ahead into next month, the property has required around $11,000 in repairs and upkeep to make it tenable again.
It gets better, the 3 days of employment that I do have is as a teacher, which is not renowned as being one of the highest earning jobs.
Why in God’s great earth did we decide as a family to drop down to 3 days a week? I’ll give you a few reasons:
1. To spend more family time together. I’d rather live frugally and have time with my kids during these formative years.
2. It gives me a chance to put my money where my mouth is and see if I can save and invest successfully enough to subsist, or better yet, thrive!
3. We have saved and saved for years and know we can do it! Years of budgets proves it even if the knees are a little wobbly.
I realise this might seem silly to some. As I said, we have saved for years though and would have a debt to equity ratio of approximately 1.5.
I have elected to reinvest the returns from the managed fund which is nearly $11,000 in net profits since the beginning of the year.
My wife also earn $8,000 as an editor and we have no personal loans, credit card debt or car loans.
In addition to this we are paying principal and interest off of our remaining home loan and envisage paying off an additional $10,000. We’ll see in a year’s time if this is achievable.
I do have a fall back, I can get contract work as an emergency teacher if the situation becomes dire.
Please if you are going to comment I’d appreciate keeping it positive and I’d love hear any well wishes. I’ll certainly be reading SavingAdvice.com a lot more carefully.
Four Kids Freak Out!
July 29th, 2015 at 12:28 pm
July 29th, 2015 at 01:43 pm 1438177414
Congratulations on the new arrival. Been there, done (doing) that - largish family and smallish salary. We're in the process of hopefully adopting a baby girl from the Philippines; however, our travel plans had a hiccup of being delayed which means my husband will be taking an unpaid leave for travel because he can't carryover vacation days. We're one mortgage payment ahead, and are trying to sustain that cushion. We're got five kids in Catholic elementary and high schools - and we cracked down to pay 25% of that last month (first payment of the 2015-2016 year). My husband has accepted a recent promotion, but will be able to work from home. And he balances two classes a week - its nuts, but it is doable. And if your kids are your priority it makes some decisions easier (like resigning from volunteer work). Looking forward to seeing your progress (and we have a rental property - single family home that we're at odds on what to do with - I'd like to sell and have no mortgage at all; DH would like to keep and sees it as instant equity).
July 29th, 2015 at 06:32 pm 1438194740
July 29th, 2015 at 07:23 pm 1438197799
We are extremely financially conservative, but none of that matters as much as raising a family and being there for our kids. The irony of it all is how much better we are doing financially than average, anyway. I think we get a lot of unecessary concern. Or maybe I should just say, "I don't see why you can't have it all." You just need a plan. The problem is most people in our culture don't have a plan.
July 29th, 2015 at 08:52 pm 1438203125
July 30th, 2015 at 10:15 am 1438251340
July 30th, 2015 at 04:13 pm 1438272802
Hat's off to you for dealing with a non performing tenant.
July 31st, 2015 at 10:12 am 1438337535
October 6th, 2015 at 04:21 am 1444105282
October 7th, 2015 at 10:21 am 1444213303
February 10th, 2016 at 11:41 pm 1455147679
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