We like to take a weekly trip into the land of others and learn just how they make life happen! Have you ever caught yourself asking ‘How do they do that’? It’s not a matter of comparing ourselves to the Joneses, it’s the willingness to seek knowledge and understanding so, you too, can make the choice whether or not you’re willing to do that. What trade-offs are you willing to make?
I’m thrilled to have 1 Man’s Money join us this week to share how they do it!
How Do They Do That: 1 Man’s Money
1) What about retirement? Are you saving?
Yes, but only $325/month since I quit my job. We have about $145K saved and our ages are 40 and 30. Once I am back to work, we will increase the contribution dramatically.
2) How often do you vacation? Where does the money come from?
We go on at least one vacation a year and since they are usually low cost, we simply cash flow it.
3) Are you planning for college?
Yes, we have $11,500 saved for our 3 year old and $4,000 saved for our 1 year old. We do not expect to fully fund their college, but hope to contribute considerably.
4) Do you have a car payment?
Yes, we have a $390 car payment from a vehicle that we purchased in November 2014.
5) Are you house poor? What’s that mortgage/rent like?
No, we bought well below what we could afford when we were both working. After I quit my job in September 2014, the payments were still very manageable. Our mortgage for a 5 bed/3 bath with a pool is only $1,811/month (3.75% fixed for 30 years).
6) How do you fund Christmas?
We cash flow Christmas. Our kids are young and do not get expensive gifts.
7) Let’s talk home improvements?
We have only owned our home for 3 years, but have done a number of home improvements. Some of the larger ticket items are:
$7,000 new HVAC
$1,200 new pool pump
$1,700 pool fence
$1,600 white picket fence in front yard
$1,800 security camera system
$2,500 wash and dryer
8) Do you save for school clothes?
No, our kids are young enough that most of what they wear is handed down from friends.
9) Do you deal with college debt?
My parents paid for my college and my wife graduated with minimal debt thanks to scholarships and help from her parents.
10) Is your emergency fund where it should be?
Not at all. We have always struggled keeping cash in the bank and only have $7K saved.
11) Do you carry credit card debt?
Not usually, but right not we have $2,500 on a 0% credit card.
Thank you so much for sharing, 1 Man’s Money! 1 Man’s Money is on their path to financial independence and retiring early. They are on a great path to make their dreams come true!
How do YOU do that?! Inquiring minds want to know about the choices you make.
Brave souls, willing to bare it all, click below:
Want to read more?!