Well, last year put a whole new spin on things from health, work, schools, and home. Our goal of early retirement has not changed, but the way we will proceed forward with that goal has been affected by 2020.
How could it not? We should all learn from the perspective gained from the last unprecedented year. Undoubtedly, it will be written about in multiple books, series, and films; however, how we will write our own future is what’s important.
Let us help guide you through a few of our top tips for home buyers looking to retire early like us.
Simplify Transportation and Reduce Vehicles
A personal car is a major expense. It can be a financial burden when two people that are bringing home the bacon and need to commute to the office or meetings. Well, over the last year, we witnessed almost every industry go remote. From technology and education to finance and telehealth, most jobs have become either completely remote or partially remote.
Thus, that means that most couples and families can simplify transportation and the number of vehicles per household. That means a tremendous savings every month.
However, we understand. Still, everyone wants the freedom of having a car and cruising the open road, but there is no need for two car payments, two insurance payments, and two maintenance bills annually.
Shop Around for the Best Housing Loan
The best decisions come from well-rounded research. That means do your due diligence online and offline about what you can afford in a housing loan. Very few home buyers can buy a home without a mortgage.
So, shop around and do your homework in regards to the current housing loan interest rate. After the last year, it may surprise you some of the incentives banks, lenders, and financial institutions are putting out there in 2021.
However, remember that budgeting is key to long-term success. Be warned that a budget is not finite. It must ebb and flow with your changing times.
Make Your Assets Work For You
While you are shopping around for a new home, why not make your existing home, car, or other assets work for you. If you have extra space or time, you can easily make a bit more money to add to your savings. This extra coin can come in handy for a down payment on your perfect house, DIY projects on said house, or into your retirement funds.
Of course, you don’t have to do this on your own. There are many companies, apps, and services that can help you market your assets. Some examples are Airbnb and Uber. Some other shared economy companies you should take a look at are here.
Automatically Put Away a Portion of Each Paycheck
When the New Year started, many resolved to save money. However, if you don’t put a good plan in place, life gets in the way. One way that we have found to work for us is direct transfer.
By setting up this service, your bank transfers a set amount of money from your checking into a savings account. So after you have received your biweekly or monthly pay, your automatic transfer puts more money into your savings or retirement.
Believe us, the piggy bank thing didn’t work for us as kids; however, if they had an automatic transfer from allowance to piggyback it would have.
Find Where Your Money Pit is and Reduce or Stop Spending
We all spend money. However, each spend is categorized differently: needs, niceties, and uber luxuries. Your money pit is between the niceties and uber luxuries. We all need a roof over our heads, food, water, clothes, and transportation. However, it is in the other two categories that a lot of our money goes out the window. The first step is to pinpoint where you are spending your money whether clothing, travel, and/or entertainment. Then, the second step is to either reduce or stop spending for a period of time. Put that money away for your big buy, a new home.
Let this guide help navigate your journey to buying a home with the goal of early retirement still in your sights. Whether it is one or a combination of the five tips, you will be well on your way to living in your new home as well as achieving your end goal of early retirement. Hey retiring in your forties is the new goal!