Re: Hop in! On my way to a 100k!
01-24-2013 07:55 AM
Sorry for the delay in the update - internet issues. Apparently I am the only person who calls in problems...and this was after five days of issues! It took the company days to fix all the problems and here I am.
Bought a house in 06/2012. That changed things a little bit. I was very happy that I could put 20% down in cash. Had to purchase another vehicle - paid cash. We had to get a second mortgage (retirement loan to pay for some major things house related, like heat!).
First mortgage - interest rate 2.75%
* Right from the start, we were paying every two weeks, as much as we could, to get the balance paid off as soon as possible.
* As of earlier this month, we "paid" off the mortgage. Yep. Six months.
* Moved the balance to a zero percent, no fee, balance transfer offer.
* There were no tax benefits to claiming the interest on this mortgage loan, so why pay the bank any interest when I could pay it to the balance?
CC - interest rate 0%
* Asked for a credit limit increase to make this possible [to pay off the mortgage].
* Paying EVEN more than I was before for the mortgage, because literally every penny goes on the cards.
* Changed tax withholding to get the max from each paycheck to ensure that I get this cc paid off in time.
* Note - I would not recommend paying off the mortgage with a balance transfer unless you are absolutely sure you can handle it financially.
Second mortgage - interest rate 1.37%
* Five year term, deducted right from paycheck (allotment).
* As soon as the cc's are paid off this December (if not sooner), then I change how much I am paying on this loan.
* MY plans are to have it paid off by December 2014, several years ahead of schedule.
Retirement - 10%
* Still putting 5% of the paycheck into the retirement plan and the employer is matching 5%.
* Went to the banks and asked them to release the CD's early without financial penalty. Some said yes - that money went or is going on the cc's. Some said no - in some cases, depending on the penalty, I cashed them out and applied the funds to the cc.
* When it comes time to renew the CD's, those making a low return rate will be cashed out and applied to the cc. Those with a nice term (good bank, like Navy), I am pulling out everything but the minimum and letting them roll over.
* No new CD's no matter how great they sound. Must pay off the cc!!!
* Called every company that owed me any money and asked for a check immediately. The checks have been coming. (Some companies hold onto the credit and apply it to a future balance. I didn't want that and asked for an immediate refund. It's basically BS if a company says that they must wait 3 months before they can consider giving you a refund on a closed account.)
* Picked up all loose coins, except for a penny or two, and deposited it to the cc.
* I normally budget funds and save for car insurance, taxes, food, medical, etc all year long. I am still doing that for the most important things - property tax & life insurance & car insurance. Everything else is being paid as I go.
* My other cc which I use for everyday stuffs and have my utilities (the ones that will) charged to it gets paid off in full every two weeks. No exceptions.
* My cc (everyday use one) gets rewards. I am cashing out those rewards every month, if there are enough to get the cash back.
* This one was super hard to do, but I changed cell phone plans. I no longer have data and my bill dropped about $80-90 a month ($140 to $49+/-). And you know what? I don't miss being able to check email on the phone!!
* I bought timers for the lights. When the light goes out in the living room, it's time to get ready for bed. That is when the light pops on in the bedroom. When that light goes out, it's lights out. Bedtime!! My electric bill has surprisingly dropped a little by using timers! As the days get longer, I will be shortening the time that the lights are on.
* Using and eating what is in the house.
* Making more things from scratch versus buying them already processed. The food bill has dropped a little by doing this. So has my weight!
* Auto insurance - have one vehicle with the "storage" status (we are not driving it - only need it in winter time when it's bad weather). Saving more than $300 a six month period on insurance because of the storage status.
* I have 5k in reserves in case of an emergency.
* I have about 30 CD's (most with low balances) that I can cash out if I had to.
* I have credit lines I can tap into as an absolutely LAST resort.
By tightening up the belt, chasing down monies owed to me, changing cell plans, insurance plans, and utility usage, I am still going to make my goal, just in a different way. The house is definitely worth more than 100k!