It surprises me when I think about what my wife and I have been doing the last 6 months to our house. Firstly, it surprises me that we have a house at all.
For a very long time I believed that owning a house (the bank owns most of it) was out of my reach, as I have always struggled financially and as a foreigner in the country with the background I do, I had zero when I started and no inheritance to speak of - other than my dashing good looks... cough. But here we are, renovating a huge house on a very tight budget.
This means that the second surprise is that we are willingly doing this on such a shoestring, knowing that it is going to be tight, knowing it is going to be difficult, knowing that we didn't have enough for calculation and work errors - and there have been errors, many of them.
But, I also think that we have made the right call and despite the timing with Covid and the challenges that has brought into our lives including crushing us even more financially, I feel that we are making a worthwhile investment. We don't plan on moving from this house for a long time, but we also have to be aware that we might need to.
After having a look at what else is available in the area, our place is looking pretty good, with the houses that are cheaper being far inferior, and the few that are more expensive, significantly more expensive. A house 2/3rds of our size in far worse condition sold for about 20% more than what we paid for ours, plus what we expect to spend on the renovations. This means that if push comes to shove, we should be able to at the very, very least cover our costs and best case scenario, make significant gains.
We also have equity in the home as we were able to put up the minimum 15% to get the loan, plus hold capital back to insulate our renovation budget a little. I'm glad we did put it aside instead of putting it all on the loan, as interest rates are low and we have a collar for 10 years. But, our insulation is wearing thin and we are getting exposed to the elements rapidly. Thankfully, we currently both have jobs and income coming in, so we are burning through our resources a little slower.
This has actually been a hidden "perk" of Covid - as we have been driving far less, eating out far less, we don't need to buy clothes, my wife doesn't have to pay for the bus or lunches at work - which means our normal living expenses are down. If we had been like this for the year before getting the house, we would have had a fair bit more in the kitty.
I am still worried daily about our financial situation however, as we aren't planning on having to sell this place ever. We really are hoping that we will be able to retire here, but with the state of the world and global political climate, nothing is assured.
All we can do is keep doing all we can do.
And that is what we are doing, although it is taking its toll on my mind and body recently. I have coped with a lot of stress in many ways throughout my life, but this prolonged period for the last four years with this year being highly unusual and pressured, is wearing me down to some degree. But, what doesn't kill us, makes us hurt terribly... or something along those lines.
Since coming to Finland, I have never felt that feeling of "having enough" money and the majority of the time I have been in the position where I worry if my card is going to clear at the supermarket.While this is not uncommon in the world, it is also not a good way to live. This is the start of my 18th year in Finland and I feel that finally, I am building a portfolio that is worth something - the house, some crypto, my work, my daughter's future, my wife's career - Yes, the portfolio is more than money, my investment is time, energy, effort into betterment.
This is why I enjoy writing on Hive so much, it hits many points of what I consider value-adding to my portfolio.
My daughter is four years of age now and I am hoping that by the time I retire from "normal work" in about 25 years, I will have built a little nest egg that we can enjoy using to support her. There is a huge amount of value in starting from nothing and building oneself up, but isn't easy and many do not make it because they don't get lucky along the way. Having a little financial support at her back, will mean not having to rely on luck alone to get to where she is going - It could help her in her education or perhaps a deposit on her first apartment to get her started - but that can be a huge difference down the road. Getting the money doesn't guarantee building with it - that is up to her.
Someone tonight thanked me for supporting them on some posts, giving some occasional votes and as I see it, they are welcome. In many ways it is like a gift, but once I have given that gift - it is up to them what they do with it. In the past I have been disappointed with what some have chosen and how some have acted after I have supported them - but that really is their choice. Sure, I can remove my support, but the past has gone. I think there are people who have squandered their opportunity here in many ways, even if they really didn't need to.
Some took it for granted they were earning as if they always would, some decided not to invest themselves into putting the best version of themselves. Whatever it is, we all make decisions and we all have to live with the consequences. The thing is that as far as I have observed and experienced, we are all affected by our economic conditions and the circumstances we find ourselves in, so we probably should try to improve ourselves if we don't like where we are.
You know, sometimes we back the wrong horse, we make decisions to invest into something that doesn't give a good return on investment. They say, invest in yourself. But I wonder, if we were an objective investor, how many of us would invest into ourselves as we are today, thinking there is potential for better from us tomorrow?
I think I am worth it, but is it true?
People don't gamble on workhorses - they just want them to do their job.
Taraz
[ Gen1: Hive ]
Posted Using LeoFinance Beta
Some things in life should be analyzed outside of the financial concept. ROI may be a good indicator in certain context but that is not the absolute metric. What if owning a real estate where you want to retire gives you a stable state of mind that cannot be valued by a financial metric.
It is a classic case of not being able to commodify a non-commodity. Investing in yourself can take different shape and form that goes beyond the realm of typical financial investment. I feel survival is key and we will manage to do something with our life and will be able to support our offspring in whatever way we can. Long term is "key" to financial freedom. And, we will never have enough money - I think.
It could be because I never had enough money 😂
Yes - What is the ROI on smoking for relaxation, or one night stands? I wonder if we were to look at the value of what we do and the expected outcome in comparison to the actual outcome, perhaps we would do something different.
I think for example investing into a child means to spend time understanding oneself and probably, become what is healthy for both parent and child. Investment is far more than financial.
I strongly agree that financial gains are really important to make your life relatively easy. But, that's not the only motive we should have.
!ENGAGE 20
ENGAGEtokens.You know in five to seven years, after a few years of the house improvements have settled in and the work is all done, you do realize you might get bored with it, might miss the stress of the change, might need to look for another project home.
You might look around during that 5-7 year time window and see that everything is done. You have taken that once blank canvas and filled in all the points. That to try and add anything else would make it feel forced, taking the beauty of the creation you made and turning it to something less.
I know what it is like to "finish" a house. I kind of missed it. One day I will be able to start on this house, I hope next year health is not so much of an issue nor is societies fears to much of an issue. Just giving fair warning, you might miss the challenge, especially when you, your wife, and smallsteps, sit back one day in the future and remember the dreams, the stress, the nightmare, the fun and joy of seeing each step done. The satisfaction of the journey, and then you will all wonder what about a new journey?
Yes, but it doesn't have to be a project home, it can be some other kind of project - like getting a six-pack - one of those "impossible" aims ;D
I do think that if we were to sell, the project might be to live in Australia - but that would be a little way down the track.
I hope you will be able to do what you want with this. I like the idea of working forever and I think that there is additional value in working at something loved and value-adding.
Houses can kind of become like hobbies in a way, kind of like the car re-builders. I never planned on doing a lot to my first house, I was still rather young, but after a bit I got wrapped up in the change it to make it fit for me. That is how we turn a house into a home, our personal touches. I hope you are able to enjoy the home for a long long time. I led a semi nomadic kind of life, always restarting every few years, I do not regret it at all.
But like I mentioned a few post back or somewhere in a comment, I miss not watching the trees grow or not seeing the changes that take place so slowly over time you miss them. I've been back to old homes, old towns, and am always amazed at the change and the growth, but I have never really lived through those changes and growth, and wonder if I would have noticed them if I had stayed.
We like to think we control our destiny, I am not so sure on that point. I do know that sometimes, some of us feel like we have done all we can and it is time to move on and explore, restart, see new vistas and new horizons; to provide the stories of far and different lands thoughts and ideas. Others are content to stay, to watch the change, to look for the change to be agents of the local change, to provide way-stations for those that need to move, and to provide an ear for the stories being told.
Home renovations can become a way of life, you know if it will be when you get ready to move and look at new houses with an eye for what could be instead of what is there.
!ENGAGE 25
I sometimes wonder that after we eventually move on - what kinds of people will come in here to remodel it for their life and culture.
I predict you wouldn't have paid much attention. We tend not to when things are too close to our face and it is like that quote, life happens while we are doing other things.
I don't think we have much control - it is more like Buzz Lightyear - falling with style.
ENGAGEtokens.!ENGAGE 20
ENGAGEtokens.Small doing all the hard work while you stuff around with your camera? XD
Hope you and wifey are on the same page with regards to staying in your place long term. It can get a bit messy when you both have a definite plan that you're determined to see through and they're different XD
Yes. She was being a bunny :D
I think my wife would be happy to be here for a longer period, at least, that is the plan. She is close to her family so there is no drive to make major changes. Perhaps one day if things go very well, we might try a stint in Oz, but that won't be for a very long time.
Of course she was XD Aaaahhh too cute!
!ENGAGE 20
ENGAGEtokens.I think almost every one of us thinks is worth, at least if they have self-confidence. But as you mention, not everything is about money and not every one of us has the same level of happiness with a certain amount of money. We all try to cover ourselves financially for the future no one wants to struggle economically when getting old but having our loved ones there when we retire far more valuable.
I think so too - yet when it comes to "health, wealth and happiness", it seems that many of us have self-defeating habits and attitudes. At what point do we recognize that if we are actually worth investing into - it is us who have to invest into ourselves daily?
!ENGAGE 20
ENGAGEtokens.Creating generational wealth is a tough road, I am right there with you and sometimes feel like a foreigner in my own country. Since we're the first generation after apartheid to be able to go study what we want and work in any field the previous generations like my parents and grandparents had pretty much jack shit to pass on to us, so we all start from scratch.
Also being the first to get degrees, get into the corporate world there's a lot of pitfalls with managing your money and then on top of that the mismanagement of our currency relative to others it hasn't been easy yet people still spend ladie dah.
I've also been trying to build nest eggs in crypto and other assets and as I get older I noticed the compound effects starting to take hold, what a difference a decade can make if you on the right side of compound interest and asset inflation.
No investor can be objective we bring our biases with us, we can only try to understand them and know that it might alter our judgement
Posted Using LeoFinance Beta
I think you will get the dark humor of the last part of that sentence...
It must be a strange feeling. So much has changed there over the last 30 odd years that I think many are somewhat disconnected from society - which makes society highly volatile.
Is there the problem of the "new rich" - meaning in this case, generations who haven't learned how to handle money well at all?
I learned this too late... it is catch up now...
How true is this.
LOL from the cotton field or in our case corn and grapes to the office, same thing in the end
I honestly don’t know if I was asleep or things just sort of ran away from me because I’ve only been working 8 years since uni and you know still getting to grips with bills and what to do with the money and finding a place you know the deal and then just when I feel comfortable in work like okay I get this now time to think about how to put this money to work it’s all gone nutso
As I’m learning about finance what I think is previous generations didn’t know shit about it but they knew savings and savings worked but now savings alone ain’t gona to shit for you, credit markets are so nuts I mean my credit card has a limit of $3300 bucks which I’ve never come close to using but they called me to offer to move it to $6000 I was like no why? What would I need it for? lol they jusy want to debt trap you
I’ve still got time on my side I hope it’s just that here inflation has got us bad, we report at 4.6 but it’s really over 10!
So I’m trying to get dollars and Eur and crypto to use to invest but with exchange rates it’s tough hopefully it does work out my excel spreadsheets aren’t pretty so I know I’ve got plenty of work to do
The system is designed to generate wealth - savings are in the wrong pockets, so the system removed the ability to save.
Good luck with your strategy and thank you for understanding my humor ;)
if you are trying to get euro or dollars just get usdc and the euro version and put them in one of these cefi solutions.
double win. no/less inflation and 10% interest on top
Posted Using LeoFinance Beta
!ENGAGE 25
ENGAGEtokens.It's interesting to see that a lot of young people don't even want to own anything - a house, a car etc. I wonder where the sharing economy will lead.
Posted Using LeoFinance Beta
I think that it will lead to a dystopia, where bit by bit there will be various kinds of paywalls applied, and those who own nothing, will have access to nothing of substance.
Sounds like "true" freedom, haha!
All the difficulties associated with building a house made this year unforgettable for you (and those who read your walls of text). I think you will never forget this year. Back pain will not allow you to: D
My hands are going to be the biggest thing - I feel like they are not even mine anymore...
I know when it comes to it we'll probably quit looking for the optimal place but start looking for a good deal, instead. Or shall we...The place is still quite important.
But on the other hand, I know one adapts to anything. Starts looking at the bright sides of whatever place one inhabits. Settlements are all quite different here. It's not the same where you are. In terms of all things social. And logistics. And the landscape. There are lots of cheap properties deep in the mountain and near the border...Too far from everything we've knowns so far or cared about. Well, except for nature ;)
But properties are also investments and they have to be picked carefully. There are bad and good investments. And the uncertainty of which is which.
While this isn't easy, I know I am in a position of privilege - luxury of circumstance. A decade down the track and we might be back in 1939.
I keep having a look at hat is on around the area to see how far out we are from the normal - and which way.
It will be a beautiful place I am sure of this. It must be overwhelming with all of this. Investing in ourselves is the best solution actually but I agree with you that it can be difficult to see the rewards in that precise moment. But as years pass by, a lot of the people who took a chance on themselves were happier than those sitting on the side. I guess it all comes down to self confidence in moments of distress
!ENGAGE
I find this too - even in failure, the active people are happier.
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ENGAGEtokens.Oh! well... I hope I am not one of those. Even though you no longer are commenting on my posts anymore. };)