Denali Northern Expenditure

We Bought a House! (And a New Plan)

Just call me Maggie Jones. Get it? Because I’m keeping up with the Joneses? We had warned you that we might buy a house and we did. Surprise! Truth be told, we had outgrown our 1200 square foot condo. We had gotten very good at inventing storage solutions and getting rid of tons of stuff, but Florin sleeps in a very Harry Potter-like nook under Penny’s loft bed and Penny is entering her teenage years and there’s no place to hang out with teenage friends except in her tiny shared room or in our only shared living space (and Mr. T and I really didn’t want to spend the kids’ teenage years hanging out in our bedroom to give the teenagers “space” or hanging out with a bunch of teenagers all the time). Luckily, Mr. T and I have the exact same taste, so when a house came on the market that we loved, we bought it.

Considering the Family

While MY ideal future may involve gallivanting around the world with our children for years at a time, I am alone in this. My family also loves traveling, but my children have expressed the desire to lead “normal” adolescent lives during the school year. They are, however, amenible to traveling during school breaks and potentially taking longer 1-2 month trips during summertimes (like we did two years ago to Europe). They also expressed wanting a stable place to have friends come hang out.

Mr. T wants to feel more “settled” before we pull the trigger on moving to self-employment and has always wanted a home where the grandkids could come visit (and if we’re maxed out in our condo with the five of us, there would be NO comfortable space if we added spouses and children to that mix in the future).

Mr. T and I also really enjoy home projects. We refinished literally every surface in our current condo and because it’s a condo, there’s no capability for exterior additions. The home we bought is in pretty good shape, but we have an addition planned and several other projects that excite us! And with a big yard, we have limitless potential (want to get into gardening? We can do that! Need to build a shop out back to run our future million-dollar business? We can do that too!).

NOT Reasons We Bought a House:

  • As an investment: This choice was based entirely on the conversations we had about how we wanted our lives to look both now and in the future. It was not a financial choice. The numbers, obviously, would be in favor of staying in our paid-off condo forever.
  • Because of Pressures: Our rule has always been we would only buy a house if we were financially ready to do so and if we found one that we both liked better than our current condo (which we LOVE). We did not plan to buy a house solely for the sake of more room. There have always been plenty of houses bigger available but we always hated all of them. We also in no way did this to meet anyone else’s expectations (and I still find myself offended when we explain we bought a house and the reaction is: “I was wondering when you’d move past that condo”).
  • Because it’s cheaper than renting: Honestly, I don’t care at all about this argument. I know that’s a selling point for many people–not having to do repairs, etc–but that’s part of the fun of it for us. We love home improvement projects and we love making it our own.

Introducing: The NEW Plan

With my recent switch to full-time and our recent home purchase, we can finally recalculate again. Living in the condo has been a very much “will they won’t they” story the past five years for us where we just didn’t know if we’d be comfortable staying here forever. Now that we have a house we never intend to leave, we can add it to the calculations and more concretely visualize what we want that future to look like. So, here’s the rough plan:

  • 2020 – Finish up some work on the new place before moving in and then slow-move in. The benefit of having a paid-off house is that we can live here as long as we want while we do some of the things we want to do at the new place. Then we can take our sweet time going through all the stuff and moving over. We plan to wood plank some ceilings, install some hard-wood flooring, and replace the carpet before moving over. Also, hopefully, by the end of this year, we will have a renter in the condo.
  • 2021 – Build the planned addition on the house: a master suite on the main (so that even when we’re old and can’t do stairs, we can live here. We’re planning WAY ahead). The main reason we’re doing this is so that no one will have to share a room. And we can still have a “party room” for teenagers with an eventual ping pong table. Big dreams, amiright?
  • 2022 – Hit our original goal of $500k in investments. Can’t give the goal up now!
  • 2025 – This is the last year Penny will be in high school. Summer of 2025 will be her summer to direct our travels. She can choose any place in the world (within reason) and we’ll take a big trip based on where she wants to go. The goals by summer of 2025 would be to:
    • hit coast FI with our 401ks so that those will cover us until the end of time from age 60 until death.
    • have a business that is covering at least 50% of our annual living expenses
    • have enough money in non-retirement accounts to cover our other expenses from 2025-2043 when Mr. T turns 60.

A transition in 2025 to self-employment with a large safety net seems like a very exciting move for all of us! One of the big WHAT IFs is healthcare. We have great insurance right now through Mr. T’s work and the single Obamacare plan in Alaska is real spendy. I’m hoping the US figures that crap out by 2025. Good grief!

So that’s it, folks! BIG CHANGES around here and we’re excited about ALL OF THEM! It’s going to be an expensive couple of years, but since we just about doubled our income recently, we’ll all still be able to save more. Don’t worry, I’ll keep you posted along the way. As always, thanks for being along for the ride.

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6 Comments

  1. John Dwyer

    great write up, Maggie. sounds like youre doing a lot of things right.

  2. David

    Wow, that’s very long range planning ahead! Really impressive, and great job getting to the point that it’s realistic to do so.

  3. We moved about a year and a half ago from our two-bedroom, modest house to a larger home, for similar reasons. We have two teenagers and lack of private space was becoming a barrier to the kind of family life we wanted. We have not regretted the move! It was important to me to have space available for our daughters and their friends and boyfriends, so that I could stay abreast of what’s happening and know their friends. We love our new basement space that is in use every single weekend with kids. I only wish we enjoyed home projects as much as you! Have fun with the new house and all of its potential!

    • MaggieBanks

      I’m so glad to hear this! I don’t think we’ll regret the decision, but it does seem to buck a trend in the FI world. And after this weekend’s scraping of popcorn ceilings, I may reverse my position that we “like” home projects. 😉 Luckily that’s the worst of the home projects we have planned!

  4. I love that you can finally put these things down for the next five years! This is so very exciting <3 Also I love the flexibility that you have with reno and moving since the condo is paid off. What a gift you gave yourselves when you killed that mortgage!

    • MaggieBanks

      Yes. This is really the ideal way to move. No hurry. No liabilities on one end. And the 5 year plan is exciting. I’m still full of doubt we’ll be able to swing it, but the numbers do seem to indicate it’s a possibility. Fingers crossed.

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