As of this post we are in pretty good shape but we have a lot of work to do. Our investments are doing well and we have a decent cash stash. The problem has never been income though. We enjoy life and for us that leads to spending, a lot of spending.
We don’t carry any credit card debt as we pay in full every month, which is a good thing. However, that monthly amount is sometimes
a little a lot more than it should be. We have monthly fixed expenses that add up to a sizable amount. We also have a house payment, RV payment, and two car payments that all need to go.
I’m still working on the best way to eliminate some of these expenses. Some of them, like the house payment and possibly the RV payment, will go away once we are full time in the RV. I consider these a necessary evil as we bridge the gap from sticks and bricks living to life on the road. As for the car payments, I might just pay one off early as that is our tow vehicle. The other is a daily driver for now, but will be gone as we transition to the RV, if not sooner.
College Costs – Our son is going off to college in a year and a half. He has a dream and is pursuing it at all costs. And those costs are very high and a heck of a lot more than we ever planned for. He is interested in a very specific field and it will require out-of-state tuition. We are still trying to figure this one out.
RV Payoff – I have read a lot about people paying off the RV with the proceeds from the sale of a home. The conventional wisdom seems to be that this is a mistake because you are selling an appreciating asset and paying off a depreciating asset. While that argument sounds good at face value, it might also be short-sighted. There is an interest rate attached to an RV loan and it acts just like a home loan. A lot of people payoff their home loan early to save interest. If I can do the same for my RV, and it is a very sizable amount, why is that a bad thing? More research is needed before a decision is made.
As I get more comfortable with this process I will start posting monthly updates on our portfolio value and net worth. I also need to do a realistic work up of the Financial Independence part of the equation. What is the annual amount we can live on and how much do we need to save to use the 4% rule to Retire Early? I don’t know the answer yet but it’s going to need to be a lot less than we spend now!