Current loan debt: 27,908.84
Currently I am debating how to handle my finances over the next year. If I put all my extra money towards my loan debt, I will easily pay it off by next Christmas, ideally by August, or as late as September. The earliest I can pay it off is June, assuming I stick to my budget (minus 50% for travel), travel 50%, and put all my extra money toward my debt. However, recently I’ve been thinking of purchasing a condo or house next year, living in the smallest room, and renting out the other room(s). This would mean I need all that loan money for a down payment instead putting it toward my loans.
Buying a house, I never really wanted to once I learned more about personal finance, but I can see the benefits of renting out the extra rooms. I currently pay about 550$ a month for rent and utilities. That money could go instead toward a house. Rent money from renters would be doing the same. And of course, if I continue budgeting and saving a lot, the house would be paid off in a few years, at which point I would have my very own rental property, earning money to pay off taxes/miscellaneous costs on itself, and some pocket money for myself. Assuming I could rent the house out for 2k and it was worth 400k, that’d mean I earn 6% a year, not bad considering.
However, I think I want to pay off my loans first, so I can be FREE!!!! I also will be more liquid, so I can start my own company, and more mobile, not having to worry about selling my house or finding full time tenants if I move.
In the short term, I have enough time to think more about it. I am currently saving up a 10k emergency fund, just in case I lose my job or some such, that should take about another month. After that, I can think more about where to put my money. I wish I could find an even cheaper place to live so that I can save faster, lol, but I guess we’ll see.
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