Re: Hop in! On my way to a 100k![ Edited ]
06-17-2012 11:56 AM - edited 06-17-2012 11:59 AM
Weeks nine and ten, combined.
HOLY COW --- I closed on a house AND paid cash for a vehicle!
It's been a stressful month, to say the least.
* Bought a house, put 20% down, and was able to close in two weeks. Having the regular savings pattern helped. Having the CD"s REALLY helped!
* They lender forced me to "close" out three CD's, but I really didn't want to do that. They were larger CD's with excellent rates - 2% and 3%. I explained the situation to the bank (Navy Federal) and asked if I could do a withdrawal on the CD's, pay the penalty (very much an ouch) and leave the CD open. Navy said yes!!!
* I stopped buying the $100 or so CD that I was purchasing every payday for a month. Just to keep the cash and to get through closing.
* Paid cash for all of my inspections and insurance.
* Becuase I had to cash out three CD's and they weren't used for purchasing the house (read the post under mortgages), I had leftover cash. I knew I was going to need a new vehicle soon. Like real soon. So I shopped for a used one. Found it. Waited almost two weeks to purchase it. (The dealership put it on hold for me.)
* Guessimated my new expenses for planning purposes.
* Asked the utility companies what the last tenant paid in average yearly costs, so I could get an idea of my bills. Tripled it for budget purposes.
* Through ALL of this, my loose change still went into the bank.
* Surprisingly, the auto insurance increased. ** I asked to be on monthly billing - there is no extra charge for that. It will make the bill affordable until I can get ahead of the curve ball and actually save up 6 months worth of payments and pay the lump sum. Once I can do that, then I can go back to saving the monthly premium and earning interest in on it.
* Surprisingly, the house insurance increased. I definitely shopped around, but would NOT authorize anyone to pull credit. Found a company (local guy to the neighborhood) was the most affordable, by several hundred dollars, and did not require a credit pull. Bless his heart.
* Furnished the house with "freebies" from friends and neighbors. I lived in a studio, moved to a house.
* Bought USED appliances. Yes, used. So much cheaper than new! Perspective - gas stove, dishwasher, front loading washing machine, and a gas front loading dryer, to include the delivery fee - $600. Everything has a 6 month warranty on parts and labor.
* Moved myself - saving bucko bucks. I had help loading on one end and sometimes (most of the time not) help unloading at the other end. What I paid in gas for multiple trips is still much cheaper than having friends help me move.
* August 2012, I will be back on budget - a new budget with my new expenses. Not July 2012, becuase I am still paying cash for those odds and ends that I find myself needing to take care of.
I am not sure where I stand with the plan for a 100 grand. I will be updating that in the next month or so.
All though this sudden house purchase and vehicle purchase, I still did some of my basics -
* tried like the dickens to keep to my already established budget which included regular savings.
* although part way into the process, I did stop buying the paycheck CD's, I stashed that money into savings. (so it was still tucked away)
* I paid cash for the extras that go with purchasing.
* I paid 20% down and cash for closing costs.
* I staggered the costs of doing the utilities to my name. Went wtihout internet for 2 weeks!
* No cable/satellite.
* Used appliances.
* Used furnishings. <---- basically free.