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For the first quarter, not much has changed in terms of debt reduction. And I’ll tell you why.
Two things happened:
Table of Contents
Saving For A Down Payment
With rent increases, mortgage rates slowly climbing, and children growing at such a rapid pace, The Wife and I decided to begin our next chapter with the most expensive purchase of our lives.
We were able to be pre-approved and lock in a low interest rate of 4.75 percent, so I decided to temporarily shift my strategy away from making large payments on my credit card and instead focus on increasing my savings.
But here’s the dilemma we’re in right now. Sellers aren’t selling unless they want to downsize or migrate because of historically low loan rates and fewer new development homes. That being said, any house on the market now, at least in New York, can fetch up to $50k more than the listed price.
I I understand that money is made on the purchase, not the sale, but this takes some time for first-time house purchasers to process.
It’s a bidding battle for houses out here. Don’t forget about the investors who have a lot of money sitting on the sidelines with whom you’re competing.
Car Repair
You never know when a car may break, no matter how much effort and care you put into it – and that’s perfectly natural.
On my way to drop little man off at school, I was awoken by a loud banging noise on the driver’s side tire while the car was in motion. It was too cold for me to investigate because, as you may know, I only like working in my cars when the weather cooperates.
What was the issue and the repair cost?
Left Front suspension failed and leaking.
Car towed: $162
Car repaired: $1,867.32
Wait time: 2 weeks
In Summary
While making bi-weekly payments on my credit card, I plan to keep increasing my down payment savings until I reach around 15% of the pre-approved loan.
Therefore, my balance remain $12,926
In case you’re curious about how I arrived at these figures. Personal Capital is a free tool that I use to keep track of my net worth.
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Gio founded TheGrowthFocusedGuy in January 2020 because he was fed up with debt.
His mission is to document his journey to Financial Independence in order to motivate and inspire others to get out of debt and begin building generational wealth.
