Quote from CRNASOMEDAY25
I know as a nurse, I will have the ability to work when I want (12 -16 hour shifts, weekends only, five day weeks, three day weeks etc) so I would be able to make a lot more money and work more hours than most other people. So, theorectically( I hope I spelled that right lol) I would be able to work let's say two 16 hour weekend days and still work three 12's during the week and still have two days off. Now I was reading this book that claims no one has to go into debt, even for a house and a car. In the book, a couple made 80,000 between them per year and saved 40,000 a year for 3 years and bought a 175,000 house CASH. So now they have no house note. They each got used cars and paid cash also. So, now they have eliminated the two biggest bills people have and they have no debt at all. Now, even with two children, I know I can live off of 40,000 a year. I could work either two jobs or work a lot of overtime and make 70,000 or 80,000 a year and in 3 to 4 years I could buy a house cash and a benz if I wanted. I find this vey appealing and quite doable, especially for a two income household. There would be no more worrying about losing my income and having the bank come take my car or house because I'd own it outright. What are you thoughts on this?
I have to tell you that I was very intrigued by this. So I found a compound interest calculator and a mortgage calculator and did some computing. For the sake of comparison, I made the following assumptions: that all money is invested in a high-yield money-market account only as opposed to stocks or real estate, that their income stays the same and does not increase, and that they are able to adjust to any increases in cost of living without decreasing their savings and that they have to pay ~$5000 annually in property taxes and insurance costs. The numbers are not exact and I'm not an accountant so I might have made some errors. But it came out like this:
If they bought the house outright:
Beginning savings: 0
Annual deposits: $35,000
Annual interest rate: 5%
Over 15 years = 793, 012.21
- annual income taxes which will be substantial without mortgage interest to deduct.
If they bought their house like the rest of us with a mortgage(assuming no down payment, a 15 year mortgage and 5.5% mortgage interest rate):
Beginning savings: 175,000
Annual PITI: 22,158.80
Annual deposits after PITI: 17,840
Annual interest rate: 5%
Over 15 years = 768,248.66
+ whatever you save on annual income taxes with mortgage interest deduction
Difference: 24,763.55, not accounting for the income tax equation.
I really can't see any disadvantages to doing it that way. However, the idea of working 65 hours a week in this profession is quite ambitious. You might think that 2 days off a week is plenty but I can tell you from personal experience that 12 and 16 hour shifts are draining and you might find yourself spending your only 2 days off recovering from your work days. I know that there are people who do it, I've done it, but it becomes a quality of life issue very quickly especially when you have children. Just something else to consider.