by Greetings from the sun-soaked beaches of the Dominican Republic! As our 2+ week vacation winds down, we’re feeling refreshed, inspired, and even more excited about our journey to early retirement. This trip has given us a delicious taste of the freedom we’re working towards, and we can’t wait to share our latest financial adventure with you.
Paradise Found: A Glimpse into Our Future
Picture this: Mornings spent sipping freshly brewed coffee on our rented condo’s balcony, afternoons lounging on pristine beaches, and evenings savoring exotic fruits like soursop or guanabanas (Tatiana’s favorite) and Spanish limes (limoncillos, a nostalgic treat from my childhood). This laid-back lifestyle isn’t just a vacation for us—it’s a preview of our early retirement dreams.
But don’t be fooled by the tropical backdrop. Between beach sessions and fruit tastings, we’ve been hard at work on something exciting: our house savings plan! It’s time to pull back the curtain on the second major financial goal of our early retirement strategy.
Unconventional Wisdom: Our Cash-Only Home Buying Plan
Here’s where we zig while others zag: We’re planning to buy our future home with cold, hard cash. No mortgage, no debt—just a paid-off piece of paradise to call our own.
I know what you’re thinking. “Are they crazy? Who buys a house with cash these days?” Well, sometimes the path less traveled leads to the best views. Let me explain our reasoning:
- Freedom from Debt: By avoiding a mortgage, we’ll truly own our home from day one. No monthly payments hanging over our heads means more financial flexibility in retirement.
- Significant Interest Savings: Imagine all the money we’ll save by not paying interest over 15 or 30 years. That’s cash we can put towards travel, hobbies, or whatever brings us joy in retirement.
- Simplicity: No mortgage paperwork, no refinancing decisions, no worries about foreclosure if life throws us a curveball. Just the peace of mind that comes with outright ownership.
- Negotiating Power: Cash buyers often have an edge in real estate transactions. We might be able to score a better deal or close faster on our dream home.
- Flexibility for International Purchases: If we decide to buy abroad, having cash makes the process much smoother. International mortgages can be a headache!
Our “Nuestra Casa Fund” (NCF) Strategy
We’ve dubbed our house savings goal the “Nuestra Casa Fund” (NCF). Here’s how we’re approaching it:
- Target Date: July 2019 (ambitious, we know!)
- Current Progress: As of May, we’re at 30.2% of our goal.
- Funding Method: We’re maintaining our current jobs while keeping expenses low. We max out retirement accounts and funnel the rest into our NCF.
- The Golden Rule: This money is untouchable unless it’s for the house. Period.
| Year-to-date NCF Update | |||
| Month | Percent of Goal Met | Benchmark (the goal we set) | Percent Increase towards 100% |
| January | 23.9% | 23.9% | Started tracking this goal. |
| February | 25.1% | 26.5% | 1.2% |
| March | 28.5% | 29.2% | 3.4% |
| April | 28.8% | 31.8% | 0.3% |
| May | 30.2% | 34.5% | 1.4% |
Why We’re Sharing Our Journey
I debated whether to make this goal public. After all, conventional wisdom says to keep your plans quiet and let the results speak for themselves. But that’s not how we roll. We believe in transparency and bringing you along for the entire ride—bumps, detours, and all.
Plus, there’s power in putting your goals out into the world. As Denis Waitley said:
“The reason most people never reach their goals is that they don’t define them, or ever seriously consider them as believable or achievable. Winners can tell you where they are going, what they plan to do along the way, and who will be sharing the adventure with them.”
Our Way vs. The “American Dream”
Let’s compare our approach to the more traditional path:
The “American Dream” (or Nightmare?)
- Newlyweds rush to buy a big house they can’t really afford
- 5% down payment, 30-year mortgage with PMI
- High monthly payments eat up a huge chunk of income
- Little left for saving or investing
- Retirement pushed back to 70s or beyond
Our Way
- Focus on financial independence first
- Rent affordably while maxing out retirement accounts
- Save aggressively for a cash home purchase
- Buy only when truly ready, with location flexibility
- Early retirement achieved, with a paid-off home to boot!
Where We Stand: May NCF Update
- Current Progress: 30.2% of our goal
- Benchmark: We should be at 34.5% to stay on track
- Challenges: Some rental property expenses set us back a bit
- Outlook: Optimistic! We expect to catch up in the coming months
Looking Ahead: The Fun Part
The best part of our unconventional plan? The freedom it gives us. Once we hit our savings goal and retire early, we can take our time exploring potential locations—maybe even internationally! We’re not rushing into a 30-year commitment in a place that might not be perfect for us long-term.
Your Turn!
We’d love to hear about your homeownership journey or financial goals. Are you saving for a house? Tackling a mortgage? Or maybe you have an unconventional plan of your own? Share in the comments below!
Remember, there’s no one-size-fits-all approach to building wealth and creating your dream life. The important thing is to define your goals, make a plan, and stay committed—even if that plan looks a little different from everyone else’s.
Now, if you’ll excuse us, we have a date with Juanillo Beach and some well-deserved relaxation. Until next time, keep dreaming big and saving bigger!
I highly enjoyed this 🙂 it’s definitely interesting because everyone aims to own a house asap, it makes them feel like they are going the right path, “American dream”,etc. I definitely agree that eliminating mortgage is a huuuge weight of your shoulders and allows for more investing opportunities.
I do wonder though, are there good options for buying a fairly nice large apartment with good rent after I begin working full time:o ? Guess I’ll see.
Thank you so much for the post!
Hi Jessica!
I’m glad you enjoyed the article!
Real estate varies locally and it’s hard to tell without knowing where you’ll land after you find a full-time job. I recommend reviewing your options once you cross that bridge.
You might want to consider renting a nice large apartment instead and see how that it feels. If later on you change your mind you can always move without getting stuck with owning an apartment that might not be suited as an investment property. Also, what if you change jobs? People change jobs often nowadays so staying mobile is another option to consider.
I’m surrounded with stories at work of people that bought condos/homes while single, got married, and then got stuck with properties that barely break even. So put all your options on the table when the time comes and figure out your exit strategies.
Thank you for commenting! 🙂