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A House in 5 Years?

Housing is just one of those things that seems to top my list every time I  break down my monthly expenses. It costs money to live wherever I happen to be. Now, I should note that I share an apartment with my girlfriend and roomate, so my living expenses are actually pretty low. If you expect to be financially independent, however, you should intend to own your house outright as soon as possible.

I know that many pf bloggers have examined the idea of paying off their mortgage early and reached different conclusions as to the viability of the prospect. After all, why dump money into your mortgage if you could be making more money with it in other investment vehicles? For me a mortgage is a liability that I simply don’t want. I can’t consider myself debt-free if I don’t owe any money except for the 6-digit loan outstanding. Instead I simply intend to buy a modest house in a lower cost of living area.

At my current rate of saving, my car and student loan are due to be paid off within the next year. Once all of our debts are cleared, we’ll be moving to save for a house with the intention of buying it outright.

Outside of our 401ks (which we take our maximum employer match every month) we should be able to save up to $100,000 within the next 5 years. It’s a lofty goal, to be sure, but I think having your own house bought and paid for is a piece of mind I’d really like to have. After all, if you don’t have any debts including your house, how much do you really need to live on?

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