< DadBodfi >
Crack a Beer. Crack a Joke. Crack the code to Financial Independence.
Beer Selection: Sweetwater IPA - Atlanta, GA
This "hopheads beery dream" is on my Mount Rushmore of IPAs. I first discovered it a few years back when I subscribed to a Beer of the Month Club. Since then it has been my go-to IPA. It's a beautiful 6.3% ABV unfiltered brew with a fantastic finish. If you're ever in Atlanta, check out their brewery tour. You can taste all their beers for around $10. Score: 8/10
Sports: Boston Red Sox vs. Baltimore Orioles
Bet*: 50 Units on Red Sox Moneyline (-160) Results: Win 79.41
Blog Total: +155.41
About 45 days ago I was sitting in a Toyota dealership. I am lucky enough to have a company truck that comes with zero out-of-pocket expenses. However I was interested in getting something for my family situation. We have two beautiful children and I thought we needed a bigger car. I had just received a sweet raise, my bonus check had come through, and I was contributing 10% of my paycheck towards my 401K. Man, that 59.5 age will be here in no time. Life was good.
Now that I have more money, I can afford more, right? The 2018 Highlanders are sweet cars. They have every feature you can imagine - 3rd row seating, automatic closing trunk gates, navigation systems. There's even a button that will turn your sound system into movie theater quality. EVERYONE NEEDS THAT, DUH. And get this - I could drive away from that dealership in that car, no money down, with a sweet monthly lease payment of $485.00 (12,000 miles a year, for 3 years). This was the deal of a lifetime..so I thought.
Now - since we are apparently so rich, we could also afford a bigger house. After having 2 kids in 2 years, it was time to up-size. I called my mortgage broker and asked the dumbest question of all time: "YO! How much house can I afford?" He told me I would have "no problem getting a mortgage for $500,000". Yessssss - that's a half a million dollars. I promptly called my realtor and told him to start sending us some links to homes at 500K and below.
These houses were awesome: 5-6 bedrooms, wine cellars, 3 car garages. One even had a Koi pond. A fucking Koi pond! I had to have it - because the bank told me I could afford it. We put an offer on the house, but it fell through after we got outbid by some bum.
The next night JCool and I were sharing a 12 pack of spiked seltzer (if you haven't tried it, please do - review coming soon). We had just discovered the wonderful world of FI. We talked about the value of things and what you actually need. Just because those blood sucking bankers say you can afford something, that doesn't mean you have to buy it. I listed my needs to JCool as follows: a space for my children to play, an extra bedroom for when the in-laws come in town, and some type of area that I could watch football, build stuff, and start our home brew. Low and behold - I found a house that had all those things and was way under the "budget". We closed today and I couldn't be happier. I also called the Toyota dealership and politely told them to pound sand. I am going to run our 2013 CRV into the ground.
So here's the final outcome, and I hope this helps our audience at least in the slightest. Just because banks and dealerships say you can afford to take out these massive loans, it doesn't mean it's the right thing to do. Think about what you need, and take it from there. What brings value to you and your family? For me, it's a home where my kids can play and where my best friends can come over to enjoy a home-brew by my fire pit.