Author Topic: Update  (Read 2825 times)

Togoshiman

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Update
« on: January 22, 2013, 12:53:51 PM »
I don't know if this is badass or not, but some folks here were very supportive when I first posted, so thought I'd share an update. 

Last year I had a significant student loan ($35k outstanding), a line of credit ($20k outstanding) and a big mortgage ($365k).  I was struggling with paying for all of the above, plus life, plus day care for a toddler plus other things before I found MMM.  While always fancying myself frugal, I clearly was not.  In particular, the loans were years old without serious efforts made to pay them.   And the LOC was mostly for a used car which I'd told myself I would pay off quickly and then didn't.  Ouch. 

The last straw was when two different sets of friends related how they had re-financed their mortgages so that they could 'roll in' outstanding debt, thereby getting a lower monthly payment and freeing up cashflow.  I was almost ready to sign on the line myself before I came to my senses.  I ran the numbers and saw that I could simply aggressively pay off all the debt.  So I did.  Proud to say the debt is gone and only the mortgage remains, which is now the prime focus of an aggressive pay-down.  I kind of don't even care about my rate since I don't plan to have it long enough anymore to really impact me.

Another part of the above was sort of dropping out of the corporate rat race.  I had been banging my head against the wall trying to get ahead for years in my company and prior position.  I finally cashed in my chips and moved to another department which was less on a track, ironically significantly increasing my salary (though perhaps limiting my top end).  So, less stress, fewer hours, increased pay and then lifestyle changes turned me around in the space of a few months.

Just a thanks and update.



nofool

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Re: Update
« Reply #1 on: January 22, 2013, 01:49:37 PM »
Great job, Togoshiman! Cheers! :)

arebelspy

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Re: Update
« Reply #2 on: January 22, 2013, 01:57:13 PM »
Well done, and congrats!  :D
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
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James

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Re: Update
« Reply #3 on: January 22, 2013, 02:03:54 PM »
That's awesome!  The numbers eerily similar to mine, I agree it's a great feeling to get onto the right track!   Stories like yours remind me to keep up with the Togoshimans of the world, rather than the friends and neighbors who model consumerism around me every day.  :)

grantmeaname

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Re: Update
« Reply #4 on: January 22, 2013, 07:03:41 PM »
Great work! It's crazy how much a few straightforwards changes can add up to! Cheers to your new ladder-climbing-free life!

gooki

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Re: Update
« Reply #5 on: January 23, 2013, 01:04:59 AM »
Well done.

tooqk4u22

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Re: Update
« Reply #6 on: January 23, 2013, 08:53:10 AM »
Another part of the above was sort of dropping out of the corporate rat race.  I had been banging my head against the wall trying to get ahead for years in my company and prior position.  I finally cashed in my chips and moved to another department which was less on a track, ironically significantly increasing my salary (though perhaps limiting my top end).  So, less stress, fewer hours, increased pay and then lifestyle changes turned me around in the space of a few months.

Great job. This is the part I need to figure out - it would be great to do it with more or the same pay but I would be open to doing it with less pay.  I struggle with two things - (1) I am not sure I how I would be in a role that was "not on a track" per se with not much to strive for, I have always thought of those people as coupon clippers that really weren't motivated and optimally productive - I know it is not always reality but I have always subscribed to if your not growing your dying philosophy and (2) I definitely don't want to make a switch to such a role and then still end up working long hours whether it be due to the requirements or my drive to do more/be more and can't turn it off and I certainly wouldn't want that to be the case for less pay.

I know some of this is based on that is all I have known and also because I can't envision what I would do with the extra time and to point #1 above these roles are the easiest to cut.  I was just saying the other day that I need a sabbatical (not an option on a voluntary basis).   Either way I am keeping my eyes open for such an opportunity to do what you did.

Thanks for sharing

Togoshiman

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Re: Update
« Reply #7 on: January 23, 2013, 10:07:20 AM »
Tooq, I struggle mightily with this still - it's far from settled in my mind.  The short version is I mucked around for a decade teaching and travelling, then came home, cleaned up, and went to law school.  I did well and went into a business role - managed to spin my previous work with law such that I was in demand in both categories.  Fast forward a decade and I realized that I was stuck in the corporate political rat race, focused far more on getting ahead than doing quality work I was proud of.  Had a hard look around both my organization and industry and realized there was not a single job I really wanted if you took away the titles and money.  Which lead to a lot of soul-searching about why I am here, why I am working, sacrifices made to get here, etc.  But I have a family, so I can't just go cultivate a Jesus look on a beach in Thailand or anything.

My solution, which coincided with discovering MMM and some other things, was to drop out of business and go back into law.  I'm with the same organization but as counsel rather than a business person.  The pay scale for the level I was at in the company is actually higher for lawyers, but mostly because I'm almost topped out already vs the business track where there was theoretically no limit to where I could go.  The project and people management is now gone, and I essentially manage my own workflow as a salaried professional.  Very nice for a while, but the same fire which drove me to see a good chunk of the world and which then drove me to succeed professionally (by conventional measures) is there.  The thought of sitting tapping out legal memos for the remainder of my career leaves me cold, but so does turning into someone I don't like much to be successful in business.

I don't know where things will lead.  I may succumb to temptation to lead and run things if an offer comes in.  I may suffer boredom but stay put for the sake of my family and 'stash.  I'm actually hoping that letting some time pass will provide perspective on avenues I haven't fully considered.  At the very least, if I get close to FI I might be in a position to make other choices, e.g. go teach, consult, etc.