Author Topic: My investments are having investments  (Read 4048 times)

rob in cal

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My investments are having investments
« on: May 03, 2014, 07:50:17 PM »
I paid off my house in 2004, and since then my house related costs of insurance (high deductible of course) low property tax (thank you Prop 13 in California), and some home repairs/maintance costs probably averages about 450$ a month, much lower than the 1800 $ a month it would cost to rent the house.  So, this has created a 1300 dollar a month margin that I've been ploughing back into saving for the last 10 years.  Coupled with other surplus income over the years, I've been able to amass about 250k in new assets since 2004.  This from someone normally earning about 45K a year from my job as pizza delivery driver.
    What I'm now seeing is that my normal household expenses have been increasing as my kids get bigger, inflation etc., but now the new income from investments, including stocks, part ownership in the restaurant I work at etc, coupled with low housing expenses, is gradually taking on a life of its own, so that close to 75% of new savings is coming from the dynamic duo of low housing cost/investments.  So much of this has all stemmed from an initial low house purchase price, which I believe is similar to Mr Money Mustache's personal journey as well (picking Longmont over Boulder IIRC). 

happy

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Re: My investments are having investments
« Reply #1 on: May 03, 2014, 08:01:27 PM »
Great story rob in cal. Inspirational. Maths is math, but its always nice to get real life examples that it works.

dsteele713

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Re: My investments are having investments
« Reply #2 on: May 04, 2014, 08:28:25 AM »
Is $45k/year as a pizza delivery driver exceptional, or is that fairly standard? I've been looking for a side job to increase my income and I think I have the perfect car for pizza delivery (2001 Honda Insight).

rob in cal

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Re: My investments are having investments
« Reply #3 on: May 04, 2014, 10:24:34 AM »
Dsteele,

I'm not really sure about other places to work.  My place is more than just pizza, alot of time I'm delivering everything but pizza, such as burgers, salads, sandwiches, tortellini etc..  I make good money on a per hour basis, and only work about 30 hours a week.  In general I think you can make pretty good money.  Key issues to look for are how busy is the place, where is it located, how many drivers do they have per night? A friend of mine worked at a place where they would have about 8 drivers on a busy night, and at our place we'd have 3 on for roughly the same amount of orders and level of delivery difficulty. Needless to say he didn't make the greatest amount of money working there.  You might want to visit tipthepizzaguy.com and check out there discussion forum.  All kinds of interesting stories out there.
    Anyway, in general I'd recommend delivering as a good part time job as long as its busy enough and in a good neighborhood, and the delivery area isn't too big (no more than 4 miles away from the restaurant or thereabouts, with the majority of orders falling in the 0-3 mile range is good).

spoonman

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Re: My investments are having investments
« Reply #4 on: May 04, 2014, 03:18:47 PM »
This from someone normally earning about 45K a year from my job as pizza delivery driver.

Right on!  That'll show people out there that you don't need a super high income to reach financial freedom.

totoro

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Re: My investments are having investments
« Reply #5 on: May 04, 2014, 03:31:09 PM »
What it shows is how a paid-off home can reduce your cost of living dramatically.  This generally creates either excess cash to invest or a reduced need to earn to meet basic expenses.

If you started today with a salary of $45,000 today and a family and bought a home it would be a monumental effort and take many years in most markets.

This is not to say the rob in cal is not a good example of thrifty living, just that living on $45,000 with a family and being able to save is possible when your housing costs are $450 a month rather than $1800 a month.

rob in cal

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Re: My investments are having investments
« Reply #6 on: May 04, 2014, 04:04:43 PM »
   Yes, a crucial part of all this was buying our house for 172k in 1998, with 20% down.  This low purchase price made it so much easier to pay off, and everything thats happened since has been a snowball effect from there.  Also, there was one year early on in our ownership where my wife worked as a teacher and that year (1999-2000) we made tremendous progress, but it sure was a crazy year. Nice homes in our area are now around the low 300's, nothing like the bay area, but still getting a little fearsome for moderate incomes.

luigi49

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Re: My investments are having investments
« Reply #7 on: May 05, 2014, 01:01:03 PM »
Amazing!!!!   Thanks for sharing

aj_yooper

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Re: My investments are having investments
« Reply #8 on: May 05, 2014, 01:46:40 PM »
rob in cal, thank you for posting your family success story.  Thinking through things really works out.