[JustLurking]

You figured it out on your own. It’s the schools.

[JustLurking]

You figured it out on your own. It’s the schools.

[JustLurking]

You figured it out on your own. It’s the schools.

[JustLurking]

You figured it out on your own. It’s the schools.

[JustLurking]

You figured it out on your own. It’s the schools.

[JustLurking]

Ray,

I do understand your point, but I think you may misunderstand my position. The way I really mitigate risk is by buying way less house than I can technically afford. I put down a big downpayment, but it is a small fraction of my overall assets. Using your Katrina example, I am the guy with the lower payment AND the cash. I could pay my mortgage off, but it wouldn’t make sense because I have a great rate from a refi several years ago. I sleep well because I don’t worry about the bills. Like Raptor, I am still a “slave” to a job that I really enjoy, but my goal is real financial independence. I haven’t really defined exactly what that means to me. I’m working on that.

Financially, I am probably way too conservative. But my career choices have been very risky. They have paid off for me, but the path I took is not for the faint of heart. Now that I have some financial success, I tend to play it pretty safe with my money. Right now I am accumulating cash because I plan to buy another property when I find what I want at a price I want to pay.

[JustLurking]

Ray,

I do understand your point, but I think you may misunderstand my position. The way I really mitigate risk is by buying way less house than I can technically afford. I put down a big downpayment, but it is a small fraction of my overall assets. Using your Katrina example, I am the guy with the lower payment AND the cash. I could pay my mortgage off, but it wouldn’t make sense because I have a great rate from a refi several years ago. I sleep well because I don’t worry about the bills. Like Raptor, I am still a “slave” to a job that I really enjoy, but my goal is real financial independence. I haven’t really defined exactly what that means to me. I’m working on that.

Financially, I am probably way too conservative. But my career choices have been very risky. They have paid off for me, but the path I took is not for the faint of heart. Now that I have some financial success, I tend to play it pretty safe with my money. Right now I am accumulating cash because I plan to buy another property when I find what I want at a price I want to pay.

[JustLurking]

Ray,

I do understand your point, but I think you may misunderstand my position. The way I really mitigate risk is by buying way less house than I can technically afford. I put down a big downpayment, but it is a small fraction of my overall assets. Using your Katrina example, I am the guy with the lower payment AND the cash. I could pay my mortgage off, but it wouldn’t make sense because I have a great rate from a refi several years ago. I sleep well because I don’t worry about the bills. Like Raptor, I am still a “slave” to a job that I really enjoy, but my goal is real financial independence. I haven’t really defined exactly what that means to me. I’m working on that.

Financially, I am probably way too conservative. But my career choices have been very risky. They have paid off for me, but the path I took is not for the faint of heart. Now that I have some financial success, I tend to play it pretty safe with my money. Right now I am accumulating cash because I plan to buy another property when I find what I want at a price I want to pay.

[JustLurking]

Ray,

I do understand your point, but I think you may misunderstand my position. The way I really mitigate risk is by buying way less house than I can technically afford. I put down a big downpayment, but it is a small fraction of my overall assets. Using your Katrina example, I am the guy with the lower payment AND the cash. I could pay my mortgage off, but it wouldn’t make sense because I have a great rate from a refi several years ago. I sleep well because I don’t worry about the bills. Like Raptor, I am still a “slave” to a job that I really enjoy, but my goal is real financial independence. I haven’t really defined exactly what that means to me. I’m working on that.

Financially, I am probably way too conservative. But my career choices have been very risky. They have paid off for me, but the path I took is not for the faint of heart. Now that I have some financial success, I tend to play it pretty safe with my money. Right now I am accumulating cash because I plan to buy another property when I find what I want at a price I want to pay.

[JustLurking]

Ray,

I do understand your point, but I think you may misunderstand my position. The way I really mitigate risk is by buying way less house than I can technically afford. I put down a big downpayment, but it is a small fraction of my overall assets. Using your Katrina example, I am the guy with the lower payment AND the cash. I could pay my mortgage off, but it wouldn’t make sense because I have a great rate from a refi several years ago. I sleep well because I don’t worry about the bills. Like Raptor, I am still a “slave” to a job that I really enjoy, but my goal is real financial independence. I haven’t really defined exactly what that means to me. I’m working on that.

Financially, I am probably way too conservative. But my career choices have been very risky. They have paid off for me, but the path I took is not for the faint of heart. Now that I have some financial success, I tend to play it pretty safe with my money. Right now I am accumulating cash because I plan to buy another property when I find what I want at a price I want to pay.

[JustLurking]

Raybyrnes,

I don’t think your reasoning is flawed. The finance books all agree that you should finance as much as possible, if the rates are reasonable. But personally, I am not comfortable with that. My income is high now, but I am essentially self-employed so I don’t take that for granted. At any given time I can look ahead 5 years and feel confident about my business, but beyond that there is just too much uncertainty. I don’t have a crystal ball to predict the future of my industry, the economy, etc. etc. So I would prefer to keep my monthly expenses low and live well below my means.

Living this way offers peace of mind and flexibility that is hard to put a price on. A few years ago, my spouse was laid off. Since we already lived on one income (and saved the rest), we had options that others in his situation didn’t. He took some time off to spend with the kids and now is doing work that is personally rewarding, but much less lucrative than his old job. We are all happier. We didn’t “need” the money to support our lifestyle. If we had a huge mortgage payment, we would have had to dip into savings every month and I just wouldn’t have felt comfortable doing it. I know that if I had “banked” the downpayment, I could draw on that account. On paper that is the same thing, but it wouldn’t feel that way.

I guess it boils down to what makes you feel the most secure – seeing a larger balance on your monthly financial statements, or having plenty of money left over every month after you pay your bills.

[JustLurking]

Raybyrnes,

I don’t think your reasoning is flawed. The finance books all agree that you should finance as much as possible, if the rates are reasonable. But personally, I am not comfortable with that. My income is high now, but I am essentially self-employed so I don’t take that for granted. At any given time I can look ahead 5 years and feel confident about my business, but beyond that there is just too much uncertainty. I don’t have a crystal ball to predict the future of my industry, the economy, etc. etc. So I would prefer to keep my monthly expenses low and live well below my means.

Living this way offers peace of mind and flexibility that is hard to put a price on. A few years ago, my spouse was laid off. Since we already lived on one income (and saved the rest), we had options that others in his situation didn’t. He took some time off to spend with the kids and now is doing work that is personally rewarding, but much less lucrative than his old job. We are all happier. We didn’t “need” the money to support our lifestyle. If we had a huge mortgage payment, we would have had to dip into savings every month and I just wouldn’t have felt comfortable doing it. I know that if I had “banked” the downpayment, I could draw on that account. On paper that is the same thing, but it wouldn’t feel that way.

I guess it boils down to what makes you feel the most secure – seeing a larger balance on your monthly financial statements, or having plenty of money left over every month after you pay your bills.

[JustLurking]

Raybyrnes,

I don’t think your reasoning is flawed. The finance books all agree that you should finance as much as possible, if the rates are reasonable. But personally, I am not comfortable with that. My income is high now, but I am essentially self-employed so I don’t take that for granted. At any given time I can look ahead 5 years and feel confident about my business, but beyond that there is just too much uncertainty. I don’t have a crystal ball to predict the future of my industry, the economy, etc. etc. So I would prefer to keep my monthly expenses low and live well below my means.

Living this way offers peace of mind and flexibility that is hard to put a price on. A few years ago, my spouse was laid off. Since we already lived on one income (and saved the rest), we had options that others in his situation didn’t. He took some time off to spend with the kids and now is doing work that is personally rewarding, but much less lucrative than his old job. We are all happier. We didn’t “need” the money to support our lifestyle. If we had a huge mortgage payment, we would have had to dip into savings every month and I just wouldn’t have felt comfortable doing it. I know that if I had “banked” the downpayment, I could draw on that account. On paper that is the same thing, but it wouldn’t feel that way.

I guess it boils down to what makes you feel the most secure – seeing a larger balance on your monthly financial statements, or having plenty of money left over every month after you pay your bills.

[JustLurking]

Raybyrnes,

I don’t think your reasoning is flawed. The finance books all agree that you should finance as much as possible, if the rates are reasonable. But personally, I am not comfortable with that. My income is high now, but I am essentially self-employed so I don’t take that for granted. At any given time I can look ahead 5 years and feel confident about my business, but beyond that there is just too much uncertainty. I don’t have a crystal ball to predict the future of my industry, the economy, etc. etc. So I would prefer to keep my monthly expenses low and live well below my means.

Living this way offers peace of mind and flexibility that is hard to put a price on. A few years ago, my spouse was laid off. Since we already lived on one income (and saved the rest), we had options that others in his situation didn’t. He took some time off to spend with the kids and now is doing work that is personally rewarding, but much less lucrative than his old job. We are all happier. We didn’t “need” the money to support our lifestyle. If we had a huge mortgage payment, we would have had to dip into savings every month and I just wouldn’t have felt comfortable doing it. I know that if I had “banked” the downpayment, I could draw on that account. On paper that is the same thing, but it wouldn’t feel that way.

I guess it boils down to what makes you feel the most secure – seeing a larger balance on your monthly financial statements, or having plenty of money left over every month after you pay your bills.

[JustLurking]

Raybyrnes,

I don’t think your reasoning is flawed. The finance books all agree that you should finance as much as possible, if the rates are reasonable. But personally, I am not comfortable with that. My income is high now, but I am essentially self-employed so I don’t take that for granted. At any given time I can look ahead 5 years and feel confident about my business, but beyond that there is just too much uncertainty. I don’t have a crystal ball to predict the future of my industry, the economy, etc. etc. So I would prefer to keep my monthly expenses low and live well below my means.

Living this way offers peace of mind and flexibility that is hard to put a price on. A few years ago, my spouse was laid off. Since we already lived on one income (and saved the rest), we had options that others in his situation didn’t. He took some time off to spend with the kids and now is doing work that is personally rewarding, but much less lucrative than his old job. We are all happier. We didn’t “need” the money to support our lifestyle. If we had a huge mortgage payment, we would have had to dip into savings every month and I just wouldn’t have felt comfortable doing it. I know that if I had “banked” the downpayment, I could draw on that account. On paper that is the same thing, but it wouldn’t feel that way.

I guess it boils down to what makes you feel the most secure – seeing a larger balance on your monthly financial statements, or having plenty of money left over every month after you pay your bills.

[Author]

Posts