Lindsay Binegar, now nineteen years old, has been raising hogs on her family farm in Highland County, Ohio, since she was at least four years old. That was the age at which she showed her first hog and earned $100. Since that time, Lindsey entered hogs in competitions, saving every penny she earned from these shows.
Including her recent winnings at county fairs, Lindsay amassed $40,000 for her education. She is now a freshman at Ohio University’s Chillicothe campus. Her parents agreed to pay for her education if she continued living at home and commuting to school. This arrangement freed her $40,000 for a different investment.
As luck would have it, her father runs an auction service. Through an estate auction her father was handling, he was able to set his daughter up with four-bedroom, two-bathroom, two-story house for $40,000 in their town of Greenfield. According to quick research on Zillow, this is an amazing deal if the house doesn’t need too much work. She plans to rent the house to relatives and use the income $450 per month income to save up for a custom-built house for her and her fiancé.
My first reaction to hearing this news is that it’s a bad idea for someone young to invest a windfall in just one thing. As this is an income-producing property for her, and she had an opportunity to find a house most likely well below market value, it’s hard to find fault. Change just a few variables in the story, and the outcome could be different. If her parents couldn’t afford to send her to college, that saved money might have had to stay destined for her education. If her father weren’t the owner of an auction service, she might not have been exposed to a fantastic opportunity.
Nevertheless, these opportunities worked in her favor, and according to the story, she has made sensible decisions about money throughout her life. You can’t go wrong with buying a house with cash, though it’s best to do only if you’re not spending 100% of your net worth. A cash cushion or emergency fund would be the primary concern and investments for the future a close second.
Photo: The Pug Father
Updated January 3, 2018 and originally published May 18, 2010.