The Start
Long time ago I read a book (during 1990's) that talked about how you could kill the mortgage payment by doing a series of steps, later I found this was just an arbitrage way of doing things. I don't think it really helped in the end. It took some really good self control not to mess it up. I did the arbitrage thing on the house and some other debts. Here is how it went; though I advise not doing it, just put extra toward the house.
You need low interest Credit Card, HELOC, and a paycheck. You would put the entire paycheck toward Mortgage, then live off Credit Card, then pay credit card off each month with HELOC. The next 1 or 2 cycles you would pay the mortgage the normal way, then pay down the HELOC, while still living off Credit cards and paying them off monthly with HELOC.
If you think that sounds stupid it is. I was young and while I understand the concept of it, today I would say it was not the best thing for me, though having a mortgage free house as quick as possible is still something I would have wanted.
Here was the setup. In 2016 I had about $39,000 in various debts, so I decided to use the leverage above to get it gone. Then I moved the leverage to the house. To pay it off by 2021, which I start in 2018.
Here was the setup. In 2016 I had about $39,000 in various debts, so I decided to use the leverage above to get it gone. Then I moved the leverage to the house. To pay it off by 2021, which I start in 2018.
Debt Freedom
Around October 2023 I was listening to Ramsey and decided debt free sounds good. I took my brokerage and destroyed my last debt about $30,000 for dental implants. Gone. Now debt free. After Ramsey I graduated to Money Guys. I loved the way they taught. I also started reading books like "The Millionaire Next Door" by Dr. Stanley. In fact I think it was that book that started it around then. I went and got a library card and started listening to audio books on Finance. No woke crap though. Feminism, left leaning politics, anytime I hit one of those I would immediately close it. What I can say is Money and Wealth itself is apolitical, amoral, and will only amplify what you believe in. I have made money with a Republican in office and with a Democrat in there.
Sorry tangent there. So I started to boost the 401k and it wasn't until 2024 or 2025 that I opened a ROTH IRA. Now Let me tell you what the ROTH IRA was not opened. Back in the early 90's the ROTH IRA and funds had high fees, index what was that. Generation X was the testing generation, we had high fees and was told nothing on how to manage a retirement. After we saw we lost money many of us, not all decided we would keep our money. We probably passed that on to the kids. No one really taught us about finance or index funds back then, and many mutual funds had astronomical expense ratios.
So I reopened my ROTH. I had a traditional that Primerica was handling probably at a AUM fee. So when I learned about indexing and proper knowledge of mutual funds and ETF's. I had a plan. I went to Fidelity to open the ROTH and Traditional accounts. I moved the Traditional over from Primerica so I could control it. I then later performed a ROTH conversion on it. The 401k at the time was awesome.
Work had after tax dollar, so I was able to perform a Mega Backdoor ROTH one year. That process was awesome to do (I wish I could still do it). Sadly the new company does not have the option. But it did help me using Mega Backdoor in order to claw my way to FI.
I had a theory and I would not realize this until later but it was a proven theory by those before my time. That 10 Years is all it would take to become FI. That with my debt free, and frugal lifestyle I could become a millionaire. I say frugal by not in the tormented left leaning way. I just simply do not use my money on stuff. I conserve my purchasing power on things I want. I go out but not often, I buy things but not often. A good night at home and playing cards is just as great as a movie to me.
Accounts
I learned you really only need 6 accounts:
- Bank Account
- High Yield account
- ROTH/ Traditional IRA
- 401k, 403b, Solo 401k etc.
- Health Savings Account
- Brokerage
Then learn a couple of strategies and rules and money becomes less mysterious and pretty boring as far as creating wealth. Which I like because I am lazy when it comes to such stuff. Most content creators I listened to always stated automation (usually starting at the bank level is what they elude to). However, I like the idea of just having payroll send the money to my CMA, Brokerage, of High Yield Savings. If anything ever happens to the Job, I do not have to remember to turn off some automation process.
Money is actually not so complicated. So after this it will be just topics specific stuff. Maybe some stories. Thanks for the journey and coming with me on it.