Monday, October 6, 2008

Time to attack again

Last October I had a post about how we (K and I) were taking it off auto-pilot and really trying to get some stuff done on the money front. I am proud to say we accomplished all of those things and for some reason I felt the urge and K agreed with me to pick up the heavy rock and move it again. Not sure if it is October or impending Christmas or a lite spot in the fiscal year where we actually have a surplus but attack we will with big goals in mind again.

1. We have to keep paying for library school for me, that is going to be about 6k a year with me going fall, summer and spring.

2. we are going to keep putting money in the Roth buying fund (that comes out automatically so its pretty easy to stick to)

3. Here is where it gets hairy ... In addition to 1 & 2 we want to pay off our 2nd mortgage (which we took out to avoid PMI) by May 2010. That is basically 18k in 18 months. That is big moving right there to find an extra grand a month but we can do it, I know we can. This does several things for us as it 1. frees up that $170/month that would be going to Mortgage Co. #2 for the next 13 years, 2. it creates mucho equity in the ole homestead which we will get back when we get ready to move , and 3. it puts us in a real position to put away some serious cash for retiring purposes.

And yes, I expect some of you will tell me don't pay on the mortgage, all that interest is tax deductible. I think that is just stupid. Why would I want to pay interest on 18k and be able to deduct 25% of that interest (or whatever it is) and pay the other 75% instead of not paying any on it.

We have a goal, we can achieve it. Achieving it now can make other bigger dreams in the future be much more realisitc.

{I know this isn't my normal pessimistic self but I get excited when I talk about being freed from my economic bondage}

No comments: