We've gotten snow and JD has been able to plow, so we'll be able to start saving up for property taxes earlier this year. We received Christmas gifts, a bonus for JD, and a third paycheck for JD in December so we made it through Christmas and repairs on JD's truck and plow, built back up the Emergency Fund (we used half when we needed 4 new tires unexpectedly), and replaced our nasty carpet with do-it-yourself pine floors. We also paid the last payment (out of 36) of a loan from my grandfather.
We refinanced our house and rolled our HELOC (home equity line of credit) into the mortgage. The HELOC was used to build our garage, so it makes sense for it to be part of the mortgage. We paid off the car too, but we cheated by rolling that into the refinanced mortgage. Adding the garage, the car, and all closing costs into the loan only increased it by about $15 a month due to much lower interest rates.
So... we're on to Baby Step 3!
Baby Step 1- Put $1000 in an Emergency Fund. Check.
Baby Step 2- Pay off all debt except mortgage. Check (But remember, we cheated with the car.)
Baby Step 3- Put 3-6 months of living expenses in an Emergency Fund.
At the end of each month, all money not needed for living expenses will go into the EF account. Once we have enough for property taxes, we'll breathe a sigh of relief, and then continue adding to the account to build our EF up. Now that we don't have a vehicle payment, we also need to start saving for when JD's truck needs to be replaced. We don't want a gazillion different accounts, so all of the saving will be in the EF account, and when we get to the point of needing a truck, we'll take money out of the EF and then build it back up. That's the plan anyway. Vehicle loans are NOT part of the plan!
It literally took me 4 hours today to balance our checking account. That's what I get for not dealing with it since the beginning of November. I was only 75 cents off, but it annoyed me so much that I spent more time until it balanced perfectly. I printed off a checkbook register template that is full page and find it much easier than figuring everything out in the little ones that fit in a checkbook. I have duplicate checks and don't need to record everything immediately. My goal is to balance the checking account at least once a month from here on out.
We're praying for more snow but will be okay if we don't get any!
So... we're on to Baby Step 3!
Baby Step 1- Put $1000 in an Emergency Fund. Check.
Baby Step 2- Pay off all debt except mortgage. Check (But remember, we cheated with the car.)
Baby Step 3- Put 3-6 months of living expenses in an Emergency Fund.
At the end of each month, all money not needed for living expenses will go into the EF account. Once we have enough for property taxes, we'll breathe a sigh of relief, and then continue adding to the account to build our EF up. Now that we don't have a vehicle payment, we also need to start saving for when JD's truck needs to be replaced. We don't want a gazillion different accounts, so all of the saving will be in the EF account, and when we get to the point of needing a truck, we'll take money out of the EF and then build it back up. That's the plan anyway. Vehicle loans are NOT part of the plan!
It literally took me 4 hours today to balance our checking account. That's what I get for not dealing with it since the beginning of November. I was only 75 cents off, but it annoyed me so much that I spent more time until it balanced perfectly. I printed off a checkbook register template that is full page and find it much easier than figuring everything out in the little ones that fit in a checkbook. I have duplicate checks and don't need to record everything immediately. My goal is to balance the checking account at least once a month from here on out.
We're praying for more snow but will be okay if we don't get any!
