Hello all,
I turn the big 30 this month. Yay me. I don’t know how I’m going to feel, but I have been looking back on my life trying to determine if I did it right, made bad choices, did I learn anything, and trying to figure out where to go after this major milestone in my life. After reading some posts on this site I felt I needed to join. MMM is doing what I said I wanted to do and he is proving that it is very possible and turning naysayers into believers.
I’m far from a frugal person although I take steps to cut money here and there. Cut back on eating out for money and health reasons (thanks to Fat, Sick, and Nearly Dead). My financial situation is sort of a mixed bag. I have investments and I have debt. I make a decent salary but always feel broke. I’ve only started to take my money very seriously mid last year and it has helped me with some confidence that I can get it done.
I'm not really new to the plan for saving for retirement and retiring early. I used to say this in my teenage years. Of course people looked at me and questioned my obvious retarded determination to make this happen. Even my own mother said good luck with that. I didn't realize why until a few years ago that people had an almost legit point. That point was only proven because I made those mistakes that the rest of young adults make. DEBT!!
Now to the meat and potatoes. I have 2 student loans $4000 (very minimal and most would laugh at me, a car loan ($1600 left...so excited!!!), 2 credit cards (MC with a revolving balance ($1400, every time I get it down something comes up, smh; Visa ($900) with the same situation, some dings on my credit report from almost 10 years ago. I just got back into the 600’s on my credit score. Lots of bad decisions back then.
My supervisor has also helped me in some ways. He has rental properties, and runs two businesses, and still manages to hold his job. He’s one of the reasons that I decided to pursue this absurd financial freedom according to the naysayers. He also suggested I read Rich Dad, Poor Dad, and after I read that I became more empowered.
Currently I rent a house. I wanted to buy a home but I didn’t want to risk it with my credit, and some of the bills I had, and my wife has some blemishes too. Felt the need was less than the want so we held back. Other things influenced that decision also is that I’m trying to relocate close to home (Louisiana) and we’re in Georgia.
We struggled after my son was born due to the medical bills, and letting my wife spend that year at home with him. I also had an issue with the IRS (a situation I had no control over) and had to take care of those obligations at the same time which led to the revolving balances and other bills that stacked up over that time.
Fast forward to now and we are contemplating purchasing a home again. I have less than $1K in my savings, but have an IRA which is performing nicely, an Etrade account, some bonds I bought while I was in the military, and an account with Lending Club.
The only reason I come back to the home purchase is I figure why should I keep renting this house and paying someone else. We’ve been in this home over 2 years now and I feel I have nothing to show for it. I feel that having my own home is a much better option but am afraid that I would then get an offer to leave this state. I could always rent it out but that could be a headache being so far away and trying to manage it. Trying to sell could be an even greater issue. The homes in Augusta I feel don’t jive with the current salaries in this area. The neighborhood I’m in has homes for sale that have been on the market since before we started renting here.
What should I do in this situation?
There are other questions but I don’t want to bombard the site lol.