How we doing with our retirement plans? Reducing our housing cost.

Yellow Toadshade
Yellow Toadshade Made with a Kikon 300mm lens f2.8 from a very low position

You probably know this blog for its photography. If that’s the case, thanks. But as nice as it is to enjoy photography, we’re able to do it because we have our expenses covered.

Can I afford to make pretty pictures?

I don’t worry about our expenses because years ago I learned some things. I would like to share some of those things; because, while we may enjoy taking pictures and wandering around in neat places, if we have a hard time putting bread on the table – that sucks. We began traveling in our 20’s, fitting it in to our working, doing it all, ever since then. We learned how.

How to fund our hobbies, interests & travels…

Get a job!!      Now some people may not like to hear that but, lats face it – there is no free lunch, there is no silver bullet. At some point there will need to be income to pay the bills. But let’s get a job doing what we enjoy!

So, where do we start. For one thing we have to get in the habit of setting aside some of everything we make; so, later on we don’t have to worry. That’s for the younger among us and I want to share some steps to make that happen.

But what about Seniors…

For the seniors amongst us there si away to eliminate our mortgage or reduce it significantly With this current Economy and uncertain times sometimes we get caught in the middle. But, we found a way around that. When I was in Real Estate in Florida one thing I learned was the present value of money.

The Dollar  in our pocket today is worth more than it will be down the road. For the moment, lets just accept that and discuss why later. Because, as my friend says, “we shouldn’t be swatting at the flies while being trampled by elephants.”

When living in Florida and doing my work, one day we did the math and as hard numbers don’t lie, it was obvious we were spending about $450 more a month then we were taking in. So, when the opportunity came up to move to the mountains that sounded like fun, and we had found a modest but clean 1,000 sq ft 2 bedroom 1bath place on it’s own lot for $35,000 – a saving in mortgage payments of about $560 a month.

Carol & Bob's house in North Carolina mountains.
Carol & Bob’s house in North Carolina mountains.

From there, we went to a new 3 bedroom 2 bath off-frame Modular home on a half acre.

Mortgage payments were $750 a month and would adjust in three years/

Oh incidentally, we had good credit so we had no problem getting mortgage money. But we wanted to improve our position even more.

We arranged a Reverse Mortgage to pay off the mortgage on our house – a saving over the last ten years of about $1,000 a month. If 62 years old or more anyone can qualify for a reverse mortgage. There is now personal liability, and no mortgage payments for 60% of the homes value.

Having no mortgage increases the disposable income dramatically.

Next blog we’ll discuss some of the ways those under 62 can build their net worth, the exciting part…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s