5000 Miles and the Title
Last week I got the title to the Corvette. In some ways, it's a relief, and in other ways not so much. Now that I've transferred my auto loan liability to my home loan, I'll be paying almost $500 less per month, the refinance gave me 2 months of income since I don't start paying on the new loan until August, and I own the car outright. The car is mine, mine, mine.
Now the bad part. With the cost of funding the refinance and the cost of the car, I'll now be paying at least an extra $200/month for the next thirty years. Thirty years? That's a lot of time, and that amount is on top of my current mortgage payment. So, my new goal, as stated here a week or so ago is to pay off the house in 5 years.
As I see it, my options are to generate income through a salary, through investing in businessses (my own or someone else's), or putting more money into real estate. Realistically, I'd have to have a bullet-proof personal network in order to get a job that would pay off the house in 5 years. In order to use the sale of real property, I'd have to leverage my time, assets, and credit to nearly a breaking point. Then I'd have to be able to successfully sell the property or get a lot of tenants. Tough.
My last, and probably most favorable option is to start my own business and/or invest in someone else's. To that end I bought a couple of books to help me along, The Warren Buffet Way
by Robert G. Hagstrom and Never Eat Alone by Keith Ferrazzi with Tahl Raz. Oddly enough, both books strongly connect lasting business success with traits like trustworthiness, honesty, and generosity. Being the son of a preacher, those traits are right up my alley. I'm about halfway through the first book, and I've read maybe a quarter of the second. I'll give a more complete opinion once I've finished.
So what does this mean for me in terms of investing in a business that will pay off my house in 5 years? I'm not quite sure, but in "The Warren Buffett Way" there is a lot of discussion about companies in commoditized markets maintaining their success through logistical expertise and a strong brand following.
Actually, I have a pretty good idea of what I'd like to do, and what the first few steps will be, but committing the time to do it isn't so easy. I'll definitely have to back off the martial arts stuff a little, but in the end the rewards should justify the sacrifice. I really like fighting though.
Now the bad part. With the cost of funding the refinance and the cost of the car, I'll now be paying at least an extra $200/month for the next thirty years. Thirty years? That's a lot of time, and that amount is on top of my current mortgage payment. So, my new goal, as stated here a week or so ago is to pay off the house in 5 years.
As I see it, my options are to generate income through a salary, through investing in businessses (my own or someone else's), or putting more money into real estate. Realistically, I'd have to have a bullet-proof personal network in order to get a job that would pay off the house in 5 years. In order to use the sale of real property, I'd have to leverage my time, assets, and credit to nearly a breaking point. Then I'd have to be able to successfully sell the property or get a lot of tenants. Tough.
My last, and probably most favorable option is to start my own business and/or invest in someone else's. To that end I bought a couple of books to help me along, The Warren Buffet Way
by Robert G. Hagstrom and Never Eat Alone by Keith Ferrazzi with Tahl Raz. Oddly enough, both books strongly connect lasting business success with traits like trustworthiness, honesty, and generosity. Being the son of a preacher, those traits are right up my alley. I'm about halfway through the first book, and I've read maybe a quarter of the second. I'll give a more complete opinion once I've finished.
So what does this mean for me in terms of investing in a business that will pay off my house in 5 years? I'm not quite sure, but in "The Warren Buffett Way" there is a lot of discussion about companies in commoditized markets maintaining their success through logistical expertise and a strong brand following.
Actually, I have a pretty good idea of what I'd like to do, and what the first few steps will be, but committing the time to do it isn't so easy. I'll definitely have to back off the martial arts stuff a little, but in the end the rewards should justify the sacrifice. I really like fighting though.
posted by moluv at 3:43 PM
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