We’re moving forward slowly but surely with the house stuff. We’re experiencing some issues with our 2013 taxes–the IRS hasn’t processed both of ours yet, which is making me nervous, but it’s not so late in the tax season that we can contact them about it. So we wait in frustration.
I’ve been dealing with some house/family issues, but the number one thing that I’m thankful for is that my boyfriend and I are on the same page. We’re on the same page with spending money, and paying down debt which is awesome. It’s definitely helpful to have someone who sees things from the same perspective as you, and agrees with you that’s it’s not reasonable to get a loan to fix some (purely cosmetic) things–not everyone feels this way. But, realizing that a large chunk of cash is going to go away in less than three weeks (this Friday will be my last second paycheck, and my last paychecks before closing!), my net worth has increased almost $10,000 since December 2013 and, excluding the mortgage, should hopefully stay above negative six figures. I won’t be seeing this change by $2000+ a month anymore, now that I’m no longer getting the extra paycheck, and having to pay a mortgage, but we’ll get there slowly but surely.
I need to catch up on my budget/spending recap posts in the next week or so, and I don’t think my weekends are going to be any less busy with the house purchase. I hope that post-move I’ll get better at posting on a regular basis, and I’m sure I’ll have more expenses to discuss, and all kinds of budget changes to deal with. I also hope to update my goals–which might have been doable if I had been able to keep up this living situation for another year, but the housing gods had other plans. Until then…
I’ve seen many people post about their realization of the importance of the emergency fund, and I’m feeling that way today. The father of a good friend of mine passed away on Monday, a few states away. It’s not even a question that I’ll go down for the funeral to support her–but there were times, even a year ago, when I don’t think it would have been doable for me. Two years ago this month my aunt died of cancer. Her father and stepmom live in Florida, and weren’t able to make it up for the funeral because of the cost of flights. I can’t imagine how terrible that must be.
Things like this really put what’s important into perspective–things like having to spend money on new tires or deciding whether to spend money on a concert seem very small to me today.
I net worth increased almost $1,000 overnight! Well…not really. But I had a $22,000 debt placeholder for two of my loans that are serviced together, and whose website didn’t work with Mint. I got an email overnight saying I needed to correct one of my bank accounts, and this was the only account that was broken–per usual. But I re-input my info anyway and, lo and behold, it’s working!
Now my net worth is accurate–less the future house (I’m not sure if I want to reflect the mortgage/house on here or not). It doesn’t really change anything for me, but it’s nice that it’s now completely working.
Since my last post toward the beginning of April, my net worth has actually gone down a bit. How is this possible? Big changes.
We started looking into rental options for when I have to move this summer. With the dog, there isn’t a whole lot of decent stuff out there. I don’t want to move over the state line, and have to deal with all the license and registration and voting changes again, only to change it again in a few years (I’m a bit of a homer, and plan on being in my home state long term, and knew that when we’d buy, we’d buy here). Most anything moderately acceptable to me was over $1000–generally with nothing included. In the past when I’ve paid rent I’ve lived with roommates, and we’ve split the cost of a 2 or 3 bedroom. At most I was paying $675 plus utilities. It’s a big difference to pay another $300 a month yourself, plus not having someone to split the utilities with. I don’t know how anyone successfully pays down student loans while living in an apartment (in this area anyway) by themselves.
Getting a roommate isn’t an option for me, because my boyfriend is moving in with me. He’ll be finishing his masters, so in year 1 I’ll be paying most of the day to day expenses. We’ve talked at length about things, and as soon as he’s working post-graduation, virtually all of his check will be going towards my student loans.
Which leaves us with where we are now. Despite my first mortgage (student loans), we looked into getting a second. We didn’t think we were really seriously looking, and I was getting really frustrated, but then we found The House. All taxes and insurance considered, it should be at most $1,400 a month. That’s a ton of money–but really only $300 a month more than I’d be paying in a rental. And it has a second unit, which we’ll be renting to my mom. We’re planning on setting aside as much of the rent as possible for any house-related emergencies, and not relying on it to pay the mortgage. This means I’ll have to get serious about being frugal, but I think it can be done.
Part of me says that we aren’t ready, and I should get in a better debt position before we jump into the house. But I also know that regardless of whether I’m paying rent or a mortgage over the next year, the amount will be high enough that we won’t make that much debt progress anyway. And while houses come on the market all the time, we really feel that this house is the right one for us. It’s very old, and has a lot of character. It has a cute little second unit that, while maybe not right for everyone, is actually pretty perfect for my mom. It has a fireplace, which we weren’t expecting to find in a two family. The really big thing for me though is the location–less than five miles to the train (my overall commute is going to be cut in half–squeee!), less than a half mile to the local bike path, a short walk from places where we can get ice cream or drinks, and multiple family members within a few miles. I don’t know how many kids we’ll have, but there’s certainly room for one or two so we won’t have to sell or move once we start a family. I’m really very excited and can’t wait to move now.
Long story short: my net worth hasn’t budged, because of a $3,500 house deposit, and $350 home inspection. Closing is scheduled for June.