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Debt Free In 2 Months with Cash in the Bank

April 9th, 2015 at 12:47 am

If we don't take on a new mortgage when we move and our current home sells, we will be debt free in 2 months. Of course, it doesn't seem the same as if we were debt free owning a home free and clear. We will still have an outflow each month on a rental, so renting doesn't free up any cash.

Fingers crossed we get a rental. The area we want is in high demand. I expect we could easily find a home for sale, but we really don't see the housing market as being in our favor in three years in this particular area. And we don't want to be landlords. So we are going to be renters for the first time in 18 years.

The money we have set aside for a future downpayment and the equity we expect to walk away from with this house will likely be invested to keep up with inflation at least. It would be nice to get it into something that would grow. Once we get past the move, I'll start looking more diligently.

I mentioned to a friend that it was tempting to invest, but thought it seemed wrong to put it into the stock market for such a short time (three years). What if it goes down? Her thought was then we just keep renting and wait to buy when the money is at least equal or greater than our initial investment. And actually, that could be a good think to continue to do until my husband retires...just keep renting.

What would you do with our future house money?

4 Responses to “Debt Free In 2 Months with Cash in the Bank”

  1. FrugalTexan75 Says:
    1428548102

    I have no idea what would be good to do with the money. Investing for such a short time does seem pretty risky though.

  2. VS_ozgirl Says:
    1428566444

    I read good reviews about ETFs? Maybe that's another avenue you could research when it's time to invest?

  3. MonkeyMama Says:
    1428592488

    If you were going to buy a house in 3 years, I'd keep it in cash. If you are willing to take the risk and wait out a potentially longer period as a renter, then investing sounds fine.

    Or you cold invest it and take the time to save up a new down payment. That could be a good savings motivation.

  4. creditcardfree Says:
    1428594848

    @MM, I do like the idea of saving up a new downpayment. Smile I might have to look at the numbers to see if that's workable. With college in our life for the next 7 years, the budget seems it could be tighter.

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