Author Topic: Advice on future plans  (Read 1242 times)

dakota5176

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Advice on future plans
« on: March 27, 2017, 07:38:54 AM »
I have a good job with a nice salary but I'm worried that it will be phased out in the next few years.  It will be hard for me to find a job with a similar salary.

Spouse recently started a small business.  It's not making much now but looks like it could pick up and do better in the coming years.

I own a house, (well with a mortgage).  You guys would say it is too big and not mustachian, but it is in a great school district for my three children.  Also don't advise me to sell and downsize because a sex offender moved in a few houses down from me and houses in my subdivision no longer sell even at cut rate prices so this is not feasible.

I have no credit card debt but one car loan that I'm working toward paying off.

I have about $100,000 in stocks and about $40,000 in bank accounts. (I also have an employee pension that is not counted here but will help with retirement.)

I have another house that I rent out.  This has been problematic in the past and I've had some really bad experiences.  Now things are better and we have reliable tenants.  I also have recently paid off the mortgage so barring unexpected repairs and of course taxes, I'm finally making some profit.

What steps should I take now for my future? Obviously I'm trying to apply Mustachian principles and cut down on expenses.  This has been going well.  There isn't much we need materially but I am having trouble cutting activities for the kids like dance lessons and t ball etc.  Things are easy to cut out but I hate to deprive them of experiences that make up childhood memories.

How should I plan for the future? I would like to increase passive income. Dividend stocks? More rental property? Go back to college for another degree? (I kind of hate to do that at my age)


Easye418

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Re: Advice on future plans
« Reply #1 on: March 27, 2017, 08:15:07 AM »
I have a good job with a nice salary but I'm worried that it will be phased out in the next few years.  It will be hard for me to find a job with a similar salary.

Spouse recently started a small business.  It's not making much now but looks like it could pick up and do better in the coming years.

I own a house, (well with a mortgage).  You guys would say it is too big and not mustachian, but it is in a great school district for my three children.  Also don't advise me to sell and downsize because a sex offender moved in a few houses down from me and houses in my subdivision no longer sell even at cut rate prices so this is not feasible.

I have no credit card debt but one car loan that I'm working toward paying off.

I have about $100,000 in stocks and about $40,000 in bank accounts. (I also have an employee pension that is not counted here but will help with retirement.)

I have another house that I rent out.  This has been problematic in the past and I've had some really bad experiences.  Now things are better and we have reliable tenants.  I also have recently paid off the mortgage so barring unexpected repairs and of course taxes, I'm finally making some profit.

What steps should I take now for my future? Obviously I'm trying to apply Mustachian principles and cut down on expenses.  This has been going well.  There isn't much we need materially but I am having trouble cutting activities for the kids like dance lessons and t ball etc.  Things are easy to cut out but I hate to deprive them of experiences that make up childhood memories.

How should I plan for the future? I would like to increase passive income. Dividend stocks? More rental property? Go back to college for another degree? (I kind of hate to do that at my age)


Welcome... I would advise to make a case study and share a full picture for the forum to help you. 

With that said, based on your post, you seem afraid to disclose this information.  I have a big house too and honestly, I don't care what the forum's opinion is (in the most respectful way).  If they want to live in a 800 sq ft house or rent until they are 45 years old or drive 20 year old cars, they are free to make their own choices.  Those choices help them get to their ultimate goal of either financial freedom and/or early retirement.

Without more information, there is no answer to your questions besides increase income, cut expenses, or both. 
« Last Edit: March 27, 2017, 08:19:00 AM by Easye418 »

Laura33

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Re: Advice on future plans
« Reply #2 on: March 27, 2017, 08:55:20 AM »
Second the call for a full case study -- hard to know what to advise you to do without knowing how big of a gap you will need to fill if your job goes away and what flex there is in the existing budget.

In the interim, if your spouse's side business looks promising, can you spend the next couple of years while still employed throwing your spare time into helping that get established?  If that business is truly viable and profitable in a few years, that could give you a really nice safety net/alternative if your job goes away.

Otherwise, I would just advise you to slash everything you can now.  You have a decent stash, but it is not enough to sustain you permanently should your job go away, which leaves you vulnerable to needing to chase jobs wherever you can find them -- and what are you going to do with the big house if you can't sell it but all the jobs you need to cover the bills are out of state?  (Hint: you will probably do what I did: take the job and move; follow the old housing market downhill; carry double housing costs for a year; and finally get realistic, cut your losses, and take a giant bath on the house.) 

Don't be me.  You have the giant gift of several years to plan for a job change.  Spend that time getting your expenses to the level where you can cover them with a local job, or bringing your spouse's income up to cover the gap.  Or both.

dakota5176

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Re: Advice on future plans
« Reply #3 on: March 27, 2017, 11:55:26 AM »
Sorry - I didn't realize this belonged in case studies. I'll repost there. I'm still finding my way around these forums!

I don't mind providing more details and I'll be happy to answer any questions.