Friday, May 31, 2013

This won’t sound very frugal

But in the long run I think it will be.  I just took out a loan and am going to use it to build a storage building in the back yard.  Let me explain:  For the past few years my hubby has been working out of our house.  He had a nice office for his business but we reached the point we just couldn’t afford the rent anymore.  That BP oil spill DID affect the construction industry, no matter what they would have you think, and anything that affects construction affects hubby’s business.  So it’s been pretty lean for us the past few years, just like it has for almost everyone else in the world. 

When he gave up his office he put a bunch of stuff into storage and has slowly been using up and selling what he has, to the point where his large storage unit isn’t really necessary anymore.  For the past year and a half we’ve also had our daughter, her husband and 2 kids living with us, they all share one room since hubby has his office in the other room and he must have an office to work from.  So I had this idea, what if we built a storage building and turned that into his office, and used part of it for storage?  Turns out monthly payments on this loan will be about $50 less than what he’s paying for the storage unit!  And in a year and a half or so it’s paid off, where as if he continues to rent a storage unit, that’s just ongoing, forever and ever and ever.  And eventually he’d start looking for another office to rent, but now he won’t have to.  So yeah, taking out a loan might not sound like a great idea.  Doesn’t everybody want to be debt free?  I know I do!  But this is an investment in our future, and one I feel certain will pay us back for years to come.  Plus it‘ll give us a little more space in our small, overcrowded house, which is a good thing!


Linda Shields said...

Very wise decision! Why didnt you think of that sooner? :-)

Penny said...

You know, that's a very good question. I get such tunnel vision at times, I can't see the obvious!