I’ve been on a “hiatus” for just over a week due to not having any Internet. Honestly, with my posting schedule, I doubt anybody noticed.
Of course, there’s a reason that I haven’t had Internet in awhile. It’s because I’ve finally moved out on my own!!!!
Oh, I’ve lived with roommates for some time. But I can’t do that anymore. I needed my own place. And I couldn’t stand paying money to some landlord every month. So……..
I’m Now A Homeowner.
That’s right, folks. The Angry Retail Banker is now an Angry Homeowner.
I bought a 1-bedroom co-op apartment. Closed on it a couple of weeks ago, painted and had furniture delivered over the course of a couple weekends, and here I am!
And here I am now with a mortgage. After down payment and closing costs, I’m $90,000 in debt. I’ve never had so much debt in my life.
Actually, I’ve never had any debt in my life. I don’t like debt. Ironic for a banker, right? I make money from other people’s debt but avoid debt myself. But that’s how I’ve always been. A saver, an investor, a cost-minimizer. I use physical cash unless circumstances require a debit card. I use cash-rebate apps for shopping.
And now I’ve got to figure out a way to pay off twice my gross annual salary while also paying a monthly HOA fee.
Because I’ll tell you this much: I’ll be damned if I’m carrying this mortgage on my back for 30 years. I’ve done the calculations. That’s an extra $68,000 paid out in interest if I do. And I don’t have that kind of money. I don’t get paid that much and this blog doesn’t produce that kind of income.
So that means I have to take measures. Debt is a disease. That includes “good debt” such as mortgage debt. And diseases need to be cured. And I think I’ve got the cure…….or at least a good painkiller.
I was reading an article the other day that was posted on Millennial Revolution, talking about why opportunities are like poker chips. While that sounds completely off topic, FIRECracker talks about having an “accountability buddy” for achieving your goals. Someone to pep-talk you, to hold you to your progress, to bounce ideas off of, and to otherwise support you.
And so I’ve decided to help murder my debt–to cure the disease–by making a change to this blog.
The change? I’m adding an accountability buddy. But who is the accountability buddy, you ask?
Tracking The Debt On Angry Retail Banker
I will soon be creating a page where I keep a running and up to date debt counter. Together, we will follow my journey to debt freedom.
My goal is to be debt free by 2023, five years from now.
Honestly, I think I have a chance even with a low salary and an HOA fee brutally double teaming me like Bruce Lee’s left fist and Bruce Lee’s right fist. The average mortgage debt in the US is about $182,000, twice the amount of my mortgage. Of course, that’s because the average American puts all their net worth into an overpriced house with an upper six figure price tag. My apartment was only a fraction of that price. I paid less than $125,000, roughly three times my gross annual salary.
That’s what you get when you buy a co-op.
Over the next few weeks and from the confines of my peaceful and quiet but super awesome apartment, I will also talk about some of my experiences in the home buying process, the tools I used (and some of the tools I wish I used), and the tools I will be using to ensure that this debt gets paid off faster.
My mortgage is scheduled to be paid off in 2048. I plan to pay it off by 2023. Join me on my journey to become debt free.
Be my accountability buddy.
Readers–What do YOU think!? Will I make my goal of debt freedom in five years? Was homeownership the right choice? Or should I have rented a place on my own instead? Leave your thoughts in the comments below!
Disclaimer: The link for the cash-back rebate app is for an app called Ibotta. It’s a grocery app that allows you to claim small rebates for your grocery shopping. I earn a $10 referral at no cost to you if you sign up using that link, purchase a brand name item from one of the listed merchants, and claim that item on the app for a rebate. Not only is it free to use, but Ibotta pays you to use it!