All Forum Posts by: Hector Garza

All my debt is from school loans and car note. 

Car not is 5 %
my school loan is 4

My wife’s is 6
I am following the avalanche method , and starting off with an initial snow ball off 559.

I just started budgeting this month so that snowball will increase once the dust settles. 

I have a few thousand in savings as emergency funds. My kids are 11 ,3,2 and 6 months . Because I have a family I feel the need to highly mitigate risk . 

Hello everyone,

I've recently made the decision to prioritize building long-term financial wealth for my family. However, I currently find myself in about $100,000 of debt, which includes school loans, car loans, and house upgrades. The highest interest rate I'm dealing with is 9.9%, amounting to around $10,000. I must admit that buying a new house without considering investing wasn't the best choice at the time. However, my wife and I were expecting our third child, and we needed a spacious forever home.

In addition to my debt, I aim to establish a safety net of six months' worth of rent, equivalent to my initial mortgage, to mitigate any potential risks.

After running the numbers, I expect to have all my debt, excluding my house, paid off by 2027. By mid-2029, I should have saved enough for a down payment on a rental property and built my desired safety net. Of course, these projections don't account for potential promotions and raises, which I believe I can secure without any issues.

However, waiting until 2029 seems like a long time, and I'm wondering if I should start saving for a down payment on a rental property now. Has anyone been in a similar situation? If so, I would greatly appreciate hearing about your experiences and any advice you can offer.

My main dilemma lies in whether I should wait for my debt to be fully paid off before venturing into real estate investments. I'm concerned that the wait may be too long, and I don't want to miss out on potential opportunities. At the same time, I understand the importance of being financially stable and debt-free before taking on additional investments.

Considering these factors, I'm seeking guidance on whether I should prioritize paying off my debt completely before delving into rental property investments. Perhaps some of you have faced similar choices and can share your insights and the decisions you made.

Thank you in advance for your time and assistance. Your advice will be invaluable in helping my family and me make an informed decision for our financial future.

Best regards, HG