The time I saved myself $29,000.

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A.k.a. I avoid getting pwned for once!  I almost went and bought a house.  But that would have been a big mistake.

For the one or two of you out there who read this blog semi-regularly, it has been hibernating.  That’s all I can really say.  I was quietly saving money with the intention of starting into real estate investment.  But I wasn’t sure about it, and wasn’t juiced up to write about anything else.

Then one day, for a variety of reasons, I decided I had found a great investment: a cute little ranch in awesome shape, in an award-winning school district not too far away.  I put an offer on that ranch with a 10% down payment.  And it was actually accepted.

With 10 days on the clock I started thinking about it.  This investment would wipe out everything I have.  I would have no emergency fund left.  I would have to rebuild that – still, I figured, my sweet rental income would boost my savings rate.  

But I also still have $6000 of student loan debt that I had quit paying in favor of going into investments.  I know – my whole life purpose has been to pay off the loans.  But I have a strange habit of saving the last of things (even bad things) rather than moving on.  And this investment would ensure that I hang onto that nagging balance for a long time.

The kicker was that I would have no other money left to pursue other investments if I wanted.  Cash placed in a Vanguard account earns you interest, and can also be withdrawn any time to use as an emergency fund or to seed another investment or self-employment.  I can’t believe I had not thought of that before.  Real estate returns can be much more exciting but your investment money is really illiquid.  Unless you want to take out a line of credit, which on a rental is total insanity.

The thing that really settled things is that I started asking around about real estate with 4 days left on the clock.  And I heard really bad things, all from people who had been in real estate before.  At first I made excuses to myself about why this or that person had a bad time and how I would do better.  But then I realized I can’t do better than all these different friends.  I can’t believe I didn’t think to ask people before.

So I backed out of the house and went and got a haircut.  First pro haircut in over a year!  Maybe this is a better speed for re-entry into the dollar-spending world.

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3 thoughts on “The time I saved myself $29,000.

  1. I was actually thinking about your blog the other day and wondering what you were up to!!

    bahahaha, I love this story and how you got a haircut instead of purchasing a house. I think that getting into real estate could be good but you definitely have to be 100% certain. That’s not an easy thing to back out of once you’re in it!

    • Hey thanks for the note Ashley! Yeah I sort of dropped off of things for a while. I’ll be back on your comments wall soon too 🙂

  2. Pingback: Scary Stories | Yay, Goodies.

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