From newspapers at 12 to property ownership at 20
Posted by John | Filed under Uncategorized
Where do I begin. My first experience with money was when I got my first job at 12 years old delivering newspapers. I hated it, but looking back it taught me a lot about money and I never stopped working since. I no longer deliver newspapers, thank God, but it taught me some vital lessons that I still use to this day.
My fascination with money has led me into the financial industry where I’ve been working for the past 14 years. I opened up my first RRSP when I was 18 with a family friend that was a financial planner and then I began buying stocks with the bank I use to work with, since they use to match up to 3%. I never understood why most of my colleagues never took advantage of the stock options. I looked at it as the bank giving me free money to invest, so why wouldn’t I sacrifice a little to gain a lot.
I was 20 years old when I bought my first property with my mom. I had saved up some money by then since I had been working for 8 years by that point. My mother was a single mother raising two kids and we both get a long extremely well, so I thought why rent any more when we could purchase a place together. I promised her that I would take care of her since she was getting older, and since she took care of me soooooooo well when I was younger. I could tell you stories for days of how great a mother I have.
At 26 years old, I purchased my second property which was a rental. I had a bit more savings and was able to put 10% down. In 2009 I began watching you on TV and interestingly enough I discovered Dave Ramsey around the same time. I love the both of you and began to go crazy with saving and getting rid of my car loan and mortgage. In February 2009, I owed $95,778.52, car loan ($15,087.21), and mortgage ($80,691.31). By December 2011 I paid it all off. I sold my rental in 2010 and made $25,000 from that sale. I threw the $25,000 on my mortgage since I had pre-payment options and then I just went el cheapo until I paid it off in its entirety. (Okay, who are we kidding, I am still cheap. Haha)
Where am I today! Well, since I was paying a mortgage payment of $809 bi-weekly for the longest time, I decided to save my old mortgage payment. I rounded it up to a nice even $1000. I figured if I could save $809 bi-weekly, I could save $1000. I started doing this in January and am still keeping it up.
During this whole process my love life also improved. I got engaged in February of this year and am getting married next weekend. Now I just have to learn to stop being so controlling with my money since I will be combining my finances with future hubby in a couple of weeks. Thankfully we have similar money styles! He’s not as cheap as me, but he’s not really a spender either.
Tip! My one tip would be to set a goal of exactly where you want to be financially and a time frame for when you want to hit that goal. Then do a monthly or bi-weekly budget to achieve that goal. (Sorry that’s 2 tips)
October 23, 2012 at 12:49 am
I love that you bought a home in your 20’s. My kids are pretty responsible with their money but not home owners yet (the eldest is almost 20). But I love your message. I also read Dave Ramsay and love to watch Gail’s series, and even though we are pretty good, I want to save more. So I am going to work on a goal… like you. thanks for the great story, all the best with your upcoming wedding and keep being careful with your money and you’ll be fine. Just don’t spoil the kids that may come along…too many people do.
October 23, 2012 at 3:10 pm
Thanks for the advice Zoey. I will try my best not to spoil my future kids.
October 24, 2012 at 8:39 am
Great work, I also bought a home in my early 20’s and glad I did instead of parting(as much as my peers atleast) fancy clothes etc and had it paid in less than 10 years. I also was lucky and had time on my side as home prices in my area have rose drastically I had my house appraised 2 years ago and its up $130,000
October 25, 2012 at 4:44 pm
Hi my friend! I want to say that this article is awesome, great written and include almost all important infos. I¡¦d like to see more posts like this .
October 26, 2012 at 10:13 pm
Congratulations.. I too bought my first home at 25, as a single woman. I am married now and at the end of next year my husband and I will be the first of our friends to be mortgage free at 41. Real estate forces you to save as you pay your mortgage. I will soon have an $800,000+ home paid for versus closets full of shoes and clothes that many young women spent their extra $$ on.
November 4, 2012 at 12:05 pm
I really wish magazines for young women talked about the joys of owning a home versus a closet full if clothes. They would not even lose money as they could have ads from banks and investment co. Anyway, good work!
December 14, 2012 at 12:08 am
@Annie, you make a very good point. Magazines should talk more about owning a home versus spending your paycheck on clothes.
I remember my mom always use to say, forget about buying clothes. Get your education and you can buy the store. I have a very smart mother!