Even though I was earning over $100k pa in my job, I didn’t realize that I was just 3 weeks from being dead broke, and no way to get out of debt. How is this possible – We had a nice house and car, even an investment property. We lived well. But what shocked me into action was when I started looking at what would happen if I lost my job.
Here’s what I worked out…
Our monthly income after tax was $6,200. Our average monthly expenses including mortgage, utilities, school fees, car expenses etc etc was virtually the same.
We had $5,500 savings in the bank and this moved up and down a little over the year.
We had almost $300k in equity in our home and about $70k equity in our investment property (the rental income basically covered the interest payments).
So whilst we had some assets (the equity in our properties) our income was dependent solely on my job. If, for whatever reason, I lost my job or was unable to work, the reality is that we would have had to sell our home to survive.
And this is the same problem I see with so many families. Even though we lived well we were a prisioner to our debt and a slave to my job.
But this is exactly what we’ve been brain-washed to believe is the safe approach to life. This could not be further from the truth. This blog will reveal what I did about this and what you can do too to stop being a prisioner to debt and a slave to your job.