My Path to Financial Independence – Phase One – Creating My Roadmap
In my last post I shared how I was ready to make some changes to my life. My desired outcome from these changes is to make my life more stable and consistent. My hope is that I am able to do this within the next few months.
I have decided that moving makes the most sense to improve my financial life going forward. If my finances were more stable I would be working on moving plans instead of pre-moving plans.
At this time it really seems like I would be able to sell my house for a significantly higher price than I owe on the loan. Looking at property prices in several areas close to where my wife could complete her masters degree indicates that we should be able to purchase a new house for significantly lower price.
This would allow us to put a larger down payment on the new house, have a lower loan balance and monthly payments, and possibly be able to take some money out to help with our debts or add to our investments.
In the areas we have looked we should still be able to command comparable working salaries. All of this should combine to allow us to begin saving at an accelerated pace again. This is the real goal that makes it all worth it.
We would also like to move because we have realized that the HOA in our neighborhood takes in a lot more money than they offer in returned service. Unfortunately we are required to pay these people each month even though they do not perform the services we expect from them. This has been the most frustrating part of owning a home for me. Nothing is covered or maintained well and I still have to keep paying.
The only thing that will convince me to not move at this point is that if I can find a new job that is paying me twice what I am earning at my current job. With the income level I have I believe that this will be tough. I don’t think it is impossible though and I believe there are others in my position earning that amount.
This would allow me to begin saving and investing at an accelerated rate again. Remember that is my real goal here. I want to be able to save and invest 2-3 thousand dollars every month after my other expenses.
My plan going forward -phase one
- Get clean and eliminate other bad habits.
- Implement a schedule and a budget.
- Organize my life and my house.
- Start meal prepping and eating healthier again.
- Getting back into the gym routine.
- Begin looking for a new job while still trying to improve my performance in my current role.
- Once I have accumulated a savings buffer reanalyze moving options.
- Decide if it makes sense to move after I create that savings buffer and how moving would effect my financial situation going forward.
I have decided to call this “phase one” because I believe if I follow those steps I will be in a more stable position to get ready to move.
After completing “phase one” objectives I will then shift my focus onto “phase two” which I will review and draft a new financial plan for myself going forward.
Phase one is all about cleaning up areas in my life that I have been neglecting. Changes that I have been trying to make for years as my financial situation keeps getting worse. I know that in the beginning this will be hard, but I am determined to create the life of my dreams.
Whatever it takes. This is just the beginning.