Dave Says: Save up and wait
Dear Dave.
I live by your advice, but I find it difficult to save for a downpayment on a home because West Coast property is so costly. How do you feel about this?
Alan
Dear Alan,
When you take on such a project, it’s important to monitor the progress. How do you feel about this?
Alan
Dear Alan,
When you take on this kind of work, you need to oversee what’s happening every step of the way. It’s your job to oversee the crew, work out details and make sure that everything is done correctly. It’s not a simple way to earn money and definitely not one that you should consider from afar. Can you guess my answer? It’s hard enough to fix and flip properties where you live. It would be impossible to flip properties from thousands of miles away. It’s not something I would do. Consider getting a temporary part-time gig to earn some extra money for your home fund. I would rather wait and save up than try to flip and fix a house out of state. I worry more about my income and work decreasing as we approach winter. I’ve experienced a couple of lean winters before. Do you think I should begin building an emergency fund for the slow times?
Carl
Dear Carl,
I love that you’re thinking about the future. I also think it’s great that you’ve learned from past mistakes and are determined not to repeat those mistakes.
You’ve got a smart idea, but you’re going to have to get on your horse to make something happen for this winter. You might also want to consider renaming it from an emergency fund. What about an “Offseason Fund?” Listen to me. You may think that I am being silly by using the term “offseason fund”. This type of saving is not really for emergencies is it? It’s a budget issue, because you’re planning and setting aside cash leading up to something you know is coming.
Remember, we’re not talking about some random amount of money. You can plan for it by putting aside a specific amount. You may need to consider a part-time job this winter, depending on weather conditions and other factors. After that, you’ll just need to plan ahead and set aside a little money each month for your downtime.
