Aug 312013

And so, the moment we’ve all been waiting for is nearly upon us.

It’s close. Oh so close.

What? you may well ask.

Well, being totally debt-free I answer. That’s what.

And so the next question is “How to fund a totally debt-free future ?”

Debt-free is one thing but one still has to eat, pay the state, keep the lights on.

It’s way easier if that’s all you have to pay, but it still requires income.

And tuition, student cars and other unknown spends are lurking in the near future.

The real question is “Could I really take a lower paying job in a different field ?”

The next question is “Would I really want to ?”  I mean, what idiot turns down a decently average salary and purposefully chooses something less? You have to be really unhappy with the present to do that and I don’t think I’m that unhappy ? Am I ?

It’s something I think, or at least dream, of doing. Quitting and starting up a small business of my own that is. But maybe it doesn’t make any sense at all. After all, life is currently good and at least the incoming supercedes the outgoing at present. So maybe it doesn’t make sense to quit for something less but to revel in the knowledge that quitting is actually now possible, if I so choose.

So, back to another question at hand. “Do I delve into the bond to fund a rental [or build such] ?”  R600-800k will buy a decent little townhouse, bringing in at least R4500 to R7500 a month. but it does mean going back to having debt. And debt means “shackled to the cubicle” to a certain extent.

Difference is, I suppose, that the debt can [theoretically] be cancelled at any time by selling up the property and chucking the proceeds back to the bank.

And so the thoughts circulate, filling the days and dreams….

One thing is for sure, we don’t think it prudent to just sit back and revel in the comfort zone for the next 15 years. We need to prepare for the next step in life – LOK [Life After Kids]. While debt-free is the ultimate goal, we need to springboard off our current strengths and for the moment that means readily accessible finance at pre-2007 interest rates. If I was going to quit to sell tomatoes then I would have as soon as the bond dropped to current all-time-lows. No, I can’t just give up the current earnings potential that may be gone in the future. Right now we have to capitalise on those strengths.

And so off to the Peninsular we go, in search of a dual-living rental that will pay some of the bond and also give us a seaside cottage to use at the same time.

It’s going to be hard but hopefully worthwhile in the long run.


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