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Hello I'm new here!
Just looking to get some feedback on my current financial plan.
Married, and in early 20's.
Husband works full time, and makes about $1350 a month after taxes, and insurance.
I work part time and make about $900 a month after taxes, and I'm on my parents insurance.
Total being $2250 a month on average.
Last year we purchased a very cheap fixer upper farm. Our loan was $52,000. We had a good chunk of cash savings, which we have used to completely renovate the house. New wiring, plumbing, roof, drywall, insulation, flooring.... etc. You name it, it's all new except the studs. It was a great buy for our area, and we did about 95% of the work ourselves. It's worth about double the amount we pay according to the assessment.
Sadly husband had NO credit, so we couldn't lock in these record low rates. So they put us on a temporary loan, and we have 1 year left before we can refinance. We are paying like 6 or 6.5% right now, and next Aug. we will be paying like 2.5 or 3%.
We have no other debt besides this mortgage.
My mother is actually still paying my car insurance, and my cell phone until Oct. She is being very generous. Once Oct. hits that will add about $100 a month in bills.
We have $1,000 in savings for emergencies.
Our Current Monthly Budget
_________________________
$520 House Payment, taxes and insurance
$100 Propane
$200 Water & Electric & Trash
$280 Food & Household needs
$360 Gas
$75 Car Insurance & His Phone
$60 My Lunches
$230 Tithes
That leaves around $425 a month
Current plan is to put about $350 in emergency fund monthly until it reaches $3,000.
Then I will start putting $100 in Roth IRA and $250 in emergency until it reaches $5,000.
We are going to have to add a basement to our house, and we'd like to do this before children. So we are looking at a less than 5 year time frame. The cost will be around $30,000. We were going to add this to our loan when we refinance. But now we are thinking we won't and we will just save as much as we can for a few years and see how much we can come up with first.
Next year when our payments go down it will add about $150 more dollars to be saved monthly.
After our emergency fund reaches $5,000 we will began vigorously saving for the basement remodel. It is something that has to be done because our foundation is weak and won't last forever. We knew this when we bought the house, and it was part of the reason we got it at half price.
I feel like we are on the right track. And we are sooo far ahead of everyone we know our age. I'm about to graduate from school, debt free as well. I have one semester left. Our cars were bought with cash.
Any suggestions or ideas?
Just looking to get some feedback on my current financial plan.
Married, and in early 20's.
Husband works full time, and makes about $1350 a month after taxes, and insurance.
I work part time and make about $900 a month after taxes, and I'm on my parents insurance.
Total being $2250 a month on average.
Last year we purchased a very cheap fixer upper farm. Our loan was $52,000. We had a good chunk of cash savings, which we have used to completely renovate the house. New wiring, plumbing, roof, drywall, insulation, flooring.... etc. You name it, it's all new except the studs. It was a great buy for our area, and we did about 95% of the work ourselves. It's worth about double the amount we pay according to the assessment.
Sadly husband had NO credit, so we couldn't lock in these record low rates. So they put us on a temporary loan, and we have 1 year left before we can refinance. We are paying like 6 or 6.5% right now, and next Aug. we will be paying like 2.5 or 3%.
We have no other debt besides this mortgage.
My mother is actually still paying my car insurance, and my cell phone until Oct. She is being very generous. Once Oct. hits that will add about $100 a month in bills.
We have $1,000 in savings for emergencies.
Our Current Monthly Budget
_________________________
$520 House Payment, taxes and insurance
$100 Propane
$200 Water & Electric & Trash
$280 Food & Household needs
$360 Gas
$75 Car Insurance & His Phone
$60 My Lunches
$230 Tithes
That leaves around $425 a month
Current plan is to put about $350 in emergency fund monthly until it reaches $3,000.
Then I will start putting $100 in Roth IRA and $250 in emergency until it reaches $5,000.
We are going to have to add a basement to our house, and we'd like to do this before children. So we are looking at a less than 5 year time frame. The cost will be around $30,000. We were going to add this to our loan when we refinance. But now we are thinking we won't and we will just save as much as we can for a few years and see how much we can come up with first.
Next year when our payments go down it will add about $150 more dollars to be saved monthly.
After our emergency fund reaches $5,000 we will began vigorously saving for the basement remodel. It is something that has to be done because our foundation is weak and won't last forever. We knew this when we bought the house, and it was part of the reason we got it at half price.
I feel like we are on the right track. And we are sooo far ahead of everyone we know our age. I'm about to graduate from school, debt free as well. I have one semester left. Our cars were bought with cash.
Any suggestions or ideas?
I've got one semester left for Web Design.
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