Tuesday, October 29, 2013

Hitting the Brakes

These past few months, I have been researching real estate. I have been looking at home/condos/apartments for sale in our area. I have been researching the cost to build an apartment over the garage to rent out. I have been watching a ton of HGTV (Scientific, I know).

I have been so ready to hit the gas and move forward. I want to move forward, dive into the real estate market, and make some money. I know that real estate has a great return on investment. I know that you can make money on real estate. I know that there are opportunities out there for people with money to invest. 

But, I have also known that if we were to invest in real estate, it would mean taking out a loan. And, I would be lying if I said, I had not at least considered it. 

Did you notice what is missing from above? How about the We.

See, these were plans I was drawing up in my head. I was ready to take my knowledge, my research, and move forward in my direction.

It was not until one day as we were driving around looking at houses, that P said "Babe, I feel like we are going 40 mph, and thats a good speed for us, but it seems like we are suddenly trying to go 70, and I am not sure we are ready for that speed."

That kind of took the wind out of my sails, but it was something I needed to hear. We have been walking along the Dave Ramsey baby steps, and things are going really well. We are on Step 6, paying off the house early.  The great thing about the Dave Ramsey baby steps is that they are small, attainable goals. The negative side to the Dave Ramsey baby steps is that they are small, and often slow moving. 

It really comes down to being content where we are. We ARE doing the right things financially. We ARE moving at a great speed. We ARE making progress on our goals. We ARE living frugally. There are so many things I want for us, but we believe that you have to walk before you can run, and we believe in a set of principals that teach us that "the borrower is slave to the lender." Proverbs 22:7
We worked really hard to get out of debt, to build our emergency fund, and to pay cash for everything we own. The only debt we have is the mortgage, and we are working really hard to knock it out in a few years. 

For me, I really need to look at where we are and where we came from. I need to realize that its a process, and we are working hard to build a strong foundation for tomorrow, and the many tomorrows after that. In finance, some people gamble, and win big, and many others gamble and lose their pants. They play a high risk game, and for every winner there are a dozen losers who wish they would have done it differently. The way we handle our money is not right for everyone, and I am ok with that. I also need to be accepting of where we are, its the tortoise that wins the race. 

That man of mine is wise, and a great partner for me. He listens, lets me dream, lets me fantasize, but then will bring me back to reality.

Have you ever made a risky financial move? How did you fare?


Stacia said...

i need to get back on track with Dave Ramsey. It's been 2 years of dabbling. Time to start "doing". Thanks for the reminder and great progress for you!!

Denise said...

i'm going with P here - besides, I've never wanted to be a landlord...
your enthusiasm is to be commended though and you know that you are a rock star right?

femmefrugality said...

Very wise man! We're not doing that so much financially, but kind of. With our time. We're both working. He just started school full time. And we've got young kids. I feel like we're spinning out of control. Something might have to give soon to pull us back to 40 mph. Cause we're not handling 70 so well.

ND Chic said...

I think its a great idea to buy an investment property even if it means taking out a loan. I think Dave Ramsey is great for people who can barely afford to pay their monthly bills but I think he misses the mark big time with wealth accumulation.