How do people afford this?

[HoopyFrood]

One consideration: land. To my knowledge it's a finite resource and last time I checked, there was not any more of it being made. If I had a chunk of cash, I'd invest in land/realestate. But would not be willing to go into debt doing it. However, I do not have a chunk of cash, so my opinion is not worth much. A number of folks I know have invested in realestate along the principle of the "cobbler". They now have plenty of rental properties owned free and clear that provide a nice retirement income.

In the period between my corporate slave career and homesteading careers I was self employed, and I focused on finance and investing, especially real estate. But I've not heard of the "cobbler" principle. Have any links you can share on it?

Currently many areas (especially urban areas) in the country are in a real estate bubble worse than the one in 2007; tracking property values over that time can tell a prospective buyer the degree of bubble-ishness that's going on in any given place. So I absolutely agree with not leveraging debt to get into a property right now.

Further, history indicates a market correction is "inevitable" (though on an unknown timescale)... so if someone can wait upwards of a couple/three years to purchase, there is a decent chance property values will get bumped down, possibly by quite a bit.

Buy low, right?

 

[lazy gardener]

Remember the story of the poor cobbler? He only had enough leather left to make a single pair of shoes. So he cut the leather out that night before he went to bed. While he slept, an elf came and fashioned the most perfect shoes. The next day, he sold them for a tidy profit and bought leather to make 2 pair of shoes. Again, the elf came in the night, and stitched the shoes. He sold the 2 pair to buy enough leather for 4 pair of shoes. This continued until he was quite rich. His wife convinced him to sell his little shop and take out a loan to buy a fancy shop at the mall. Which he did. The elf never found his new location. His plain old shoes did not sell well, and he was soon facing bankruptcy b/c he could not afford the loan payments on his new shop.

Moral of the story: don't go into debt!

 

[HoopyFrood]

@lazy gardener Wow, I have never heard that story!

Technically it is very possible for debt to be leveraged to great advantage in the right business plan. In "the business" they call it OPM (other people's money). But doing so is not something to be attempted by the faint of heart nor the ill-prepared. And to succeed requires painstakingly meticulous tenant management and unbelievable amounts of debt management. It definitely would not be advisable for most people to take that road

I started down it but quickly realized it's a ROYAL pain, full of lots of TEDIOUS work, and the only result is money that must be managed; and that results in MORE tedious work...

I don't need much money and I'd rather spend my time doing fulfilling things that actually interest me. Hence homesteading! No matter how bad the Maine winters get, I still MUCH prefer that headache than the banality and stress of the business world. What a drag!

 

[Mama Runner]

This year at Christmas when family asked what I wanted I gave them this list. Ever since we were little Christmas and Birthday presents we're items we needed. Church shoes soxs underwear. So we are kind of used to it. We keep everyone's list on the fridge for birthday's just for no reason.

My Present List 2018
All sizes freezer bags
Mason Jars
Incubator
Gift cards Visa/MC to pay utilities online or buy things for the animals
Baking ingredients
Seeds
Plants
Material for sewing
Sewing supplies
I won't write the whole thing out but you get my drift. Yes it means you may not get something you really want but, you will get things you need. And most of us out there will have someone like my brother. He gets something of the list and then always something poohbear related.

 

[ChickenRelatedUserName]

www.mrmoneymustache.com

 

[talkturkey]

LOL. I'm out of debt, been that way for quite some time... however, can't afford health insurance, so working soley for the health insurance. Thx Obama(care)

 

[lazy gardener]

Hubby is due to retire in 18 months. I've been on his insurance for many years. So, when he retires, I will be facing astronomical health care insurance costs. He checked and COBRA for me would be $800/mo.

 

[itsasmallfarm]

ouch, that hurts with medical care price's.

not sure if this counts, but plan on foraging for food, one to cut down on food bills, (even though i don't pay for food yet) two, to escape factory/industrial farming, and third reason because hunting, fishing trapping and foraging for food is awesome and fun.

 

[RatchetRev]

My husband and and I live on about 2 acres on property be bought before we got together. It's only a trailer and needs work but its home and all we have to pay for is electric. He works a full time job and I stay home and take care of the house and our 34 animals. We dont go out to eat or buy stuff we dint need and we build/work on our own stuff.

 

[talkturkey]

Hubby is due to retire in 18 months. I've been on his insurance for many years. So, when he retires, I will be facing astronomical health care insurance costs. He checked and COBRA for me would be $800/mo.

Yep, that was exactly my scenario! It was $800/mo premium for the bronze plan which would equate to $6000 deductible after paying $9,600 in annual premiums, for a total annual investment of $15,600 before getting much benefit out of it!