Given the new information, it’s pretty clear the questionable decision was not the house purchase. That was solid. The questionable decisions were the cars, as you’re aware.
I have to admit when you bought the house and immediately remodeled it, I became a little concerned. It wasn’t just a simple remodel as I recall but a pretty high end remodel. That gave me pause.
In the four years since purchase, you’ve spend a good chunk on a remodel and purchased at least two new cars.
Now is a good time to pause and evaluate.
You now have three kids – it is time to focus on them. No more trips to Vegas. No more new cars. Nothing but protecting that nest and paying down your debt.
Kids don’t care if you car is 1 year old or 10 years old – they really don’t. Give them a loving stable home and a few toys now and then and they are happy.
I’ll tell you a story about when we bought a new house when my son was 10. I was concerned about whether we could afford it, but I knew it was a wise thing to purchase from a financial standpoint (that turned out to be correct).
My son and I were driving somewhere in my truck when we opened escrow and since I’m a worrier, I let him in on the big decision we were making. I asked him if it was OK with him if we bought the house and couldn’t afford to go to Disneyland or do other fun things for a few years. He fell silent. He thought for a minute. He asked if he would still get toys at Christmas. I promised him like I’ve never promised that his Christmases would not change. He said then buy the house.
Kids are pretty simple. My son’s big thing was getting great gifts at Christmas. That is all he really wanted. I’m sure your kids have a similar one or two things that are a priority to them.
Just make sure you keep that nice, stable house you have and focus on the one or two things your kids want each year and see them through to adulthood.
I can guarantee (almost) that if you sit down and tell them the situation – that you’re going to have to cut back on spending – and ask them what is important to keep in their life as you cut back, none of those kids will say a new minivan.
I’ve often said the best things in life are free. And we are lucky. We have the beach right here. There are many, many fine parks in San Marcos – even a lake right there in Discovery Hills. Or take them to Jack’s Pond. Year passes to the zoo are dirt cheap. And there is always camping.
I know you’ll be giving up all the fun things adults do (well, the ones that cost anyway 🙂 ) but that’s what my wife and I did for over a decade. No nights out, no drinking, no social life. Just raising kids. That’s it. Our kids thought we were outcasts since we had no friends.
But once they turn 16, they really don’t want to hang out with mom and dad anyway. Then your social life will return…you’ll find new hobbies…Vegas will once again call your name. And life will take you to the next adventure beyond parenthood. Our circle of friends is now larger than our kid’s. 🙂
All things in moderation and at the right time.
Sorry to be so preachy, I’m normally not like that. But I get the sense you’re at a crossroads and if you make the right choices you’ll have set yourself up for a very bright future.
(ps – I think you should stay pat on the cars for 3 years. You should have the Prius almost paid off by then. The lease on the Honda will be up. Then you can buy a real nice used car for $8-9K with 100K miles and have two reliable cars on your hands…that should get you through another 5 years or more…I have a friend with over 250K on his Prius and it’s still going. Worried about going on long trips with a 100K+ mile car? Rent a car for the trip! That’s what we did – worked out fine and a helluva lot cheaper than a car payment all year.)
