Outlawghia said:
How about thinking way outside of the box and not have a home and just do cool car stuff around the world on your days off.
So for the past five years i was working a fly in and out job in northern Canada working on a ten in and a ten out shift , so on my days off the wife and i would often travel to wherever there was a seat sale too, so some of the car events we got to do were -GoodWood festive of speed (it really is over the top cool)
Nurburgring twice, it helps to have a friend who lives 45 min away and has a track car
Ireland doing a road trip taking nothing but back roads,
southwest US again taking nothing but back roads
plus we did a lot of non car event trips, in total i think we did 13 different countries in europe asia and north and south america and really we did all of this on a reasonable budget.
Just think you could look at the world racing calender and go to those events on your days off
While that is a great treat to live as a vagabond and simply enjoy life. It has it’s costs as well. By not owning a home you are never going to get on the inflation elevator.
Real estate appreciates at about the rate of inflation while special real estate appreciates at a multiple of inflation.
The earliest years at one place are also the hardest and most expensive. Very little of your payment goes towards building equity. Yet percentage wise it demands the most of your income. Over time that curve gradually bends into your favor until the end of your mortgage nearly everything you pay goes towards paying off that debt.! The big advantage there is interest paid is tax deductible. In effect the government subsidized part of your payment.
Assume you buy your home at age 20 and make payments for 30 years. As you get older your income tends to increase meanwhile the percentage of your income going to paying off that mortgage is smaller and smaller. By age 50 the mortgage is paid off and you are in a position where other than costs ( such as maintenance and taxes) you can live free. At the same time your earning are approaching the maximum Meanwhile inflation has increased the value of that asset.
If wisely purchased in your youth the item you bought for 1/4 of your income is now worth thanks to inflation and value 25-50 times your income.
They say that sudden diets may give quick results but when the dieting is over the body goes back to it’s normal weight plus a little extra from the stress of dieting. The best way to lose weight is slowly a pound or so a week. The body adjusts to that loss and weight loss can become permanent.
That’s also the best way to gain wealth. Slowly over a lifetime. No sudden spurts of income, like winning a lottery just a gradual steady increase.