Rebuilding

Gooooooooooals

Well, goals set, at least. Friday night we were talking about saving money, and Tony offered to write down our goals. We decided that we want to have $10k in savings, in addition to whatever we need to buy a house (down payment, closing costs, etc. included). That $10k is a safety net, not to be used except in an emergency.

Tony broke the goals down into chunks and added them to the calendar. I worked on it some more yesterday, even created a spreadsheet (of course) to help visualize everything. Within the next month, we will have the $10k saved, so that’s our first mini goal. There’s another mini goal in early September when we hit $20k.

Then, in December, we have our first milestone. This is the earliest possible time we could buy a house in our price range and make a 10% down payment. We’d need to come in at the low end to maintain a safety net of $7.5k, so at that first milestone we could spend no more than $250k for a house.

The second milestone comes in early February 2015. We’ll have a little over $39k and can comfortably pay 10% of $250-$275k, and have more left over.

By the time we hit the third milestone in April, we could push the purchase price up to $325k, and we’d still be left with $13k in the bank. That’s a pretty good place to be. Especially because we may have more at this time, due to my annual bonus and any tax refund we get.

So our last milestone is at the end of May 2015, a year from when we started saving. Neither of us wants to go higher than $325k on a house, just in case something happens and we need to live on one income. We have learned that fucking lesson. But by milestone 4, we will have saved$52k, enough to put $32k down on a house and still have $20k left in savings. Even after the safety net, that could fund Tony’s IRA or pay off my car…or if we have extra, both.

A safety net. A pretty damn nice house. Money towards retirement. A step closer to having a free place to live when we’re old. But best of all, no debt except the mortgage and my student loan. Then we can save more, maybe take a vacation, maybe get a new car, etc. With savings, the sky really is the limit.

I’m not going to say anything like “of course this may not happen,” because OF COURSE IT IS GOING TO HAPPEN. IN FACT, WE MIGHT SAVE EVEN MORE THAN WE THINK. We could make $50,000+ appear within the next year…and that is a fucking goal to be proud of.

 

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