Do you see that?
My assets have officially topped $1,000,000! Even though this milestone is market dependent, it still feels damn good to have achieved.
If I sold all my assets today, I still would not have enough money to retire on since I still owe the bank some money, but it is still a good feeling.
I would like a little more diversity in my investments; more avenues of passive income to lessen the blow when a bear market emerges.
So, I am considering borrowing more money.
For the last couple of months, I have been throwing around the idea of adding a two-bedroom unit to the property and then renting out the main house. My preliminary calculations indicate that this would drop our monthly expenses by about $1,000. If we chose to rent out the two-bedroom unit to travel, we would have an extra $1,000 spending money to take on the road.
Our debts would increase by about $100,000 to $125,000 (that’s my budget, contractors have alternative ideas), but the renters would pay nearly all of the debt. That is something I might be able to get behind.
They say you have to spend money to make money right?
Truth is, I have been a little annoyed that I am not making any money off our primary residence. Every month I see the money going out; I know there is a way to leverage the equity in our property. All it would take is a little effort up front and a willingness to downsize our living situation.
Anyway, it is something to seriously consider.
Financials from the Web
I find it useful to compare my plan and progress to others on the same path. There is no doubt that we all have different incomes and levels of spending…there is no shame here!
Use what you find in these links to formulate a financial plan that is right for you, whether it be to reduce expenses or to develop a strategic savings plan for financial independence. If you know of any other updates I can link to here, let me know in the comments!
Net Worth Reports
I have eliminated the next worth portion of the Church of FI, because I have been made obsolete by Rockstar Finance . They have an extensive directory of links to net worth reports. Go check them out and bookmark their site!