Hey Kids. I saw an episode of Suze Orman recently and got motivated to share. I have a lot of updates, but I'll keep this post short. I paid off all of my credit card debt years ago when I kept this blog (yay!) but have since acquired new debt in the form of a 30 year mortgage at 5.25%. I know, rates are cheaper now. I would refinance but I'm technically underwater. In fact, I tried to refinance last year. That's when I found out that my home is allegedly worth less $25,000 than I paid in 2009. I'm not terribly worred about that. I'm not looking to move. And I can't change the past. I'm here to relay plans for the future. With these great new pie graphs!
Goal 1: Liquid savings of $16,000 by December 2012.
So whats up with the lack of emergency fund? Things come up. Especially when your a home owner. Plus I'm not counting the cash in my Roth IRA here which could technically be taken out in case of an emergency. Or any of my other savings accounts (see below) which are also geared toward being prepared for emergencies. Just very specific emergencies.
Goal 2: Replace my septic tank by October 2014.
I found out that my septic tank has a crack in it. They told me that I probably have 5+ years but I'm going to err on the side of caution. I have given myself three.
Goal 3: Eventually I'll need to replace my car.
This is just a slow and steady savings for that. If I reach 100% I'll be able to afford a new car. Less than that and it will be a used vehicle.
Goal 4: Early mortgage payoff.
I've been paying extra principal each month and once I have replenished my emergency fund it will be a huge payment. I expect to at least cut the mortgage down from 30 years to 15. But hopefully it will end up being under 10!
And that's it. You are updated, world. Wish me luck!
