2014 Financial checkup

[scfr]

-Vehicles will always be an achilles heel. If not from the enthusiast aspect, then from the annual mileage we put on because of our jobs. We'll always need two newer, reliable vehicles because of how much we drive. I wish working closer to home was an option, but that's the tradeoff-- We live in a beautiful area where the cost of living is still pretty low and housing is a good value. Our skillsets are hired for in the city, so we bridge the gap by commuting.

Consider broadening your definition of a reliable vehicle to see if it could include slightly older vehicles. If you could delay replacing existing vehicles by a couple years, over time the savings will add up.

Is there a way to own only 2 vehicles and still meet your needs and desires? Could you own 2 and rent a "special vehicle" (Jeep or whatever) once or twice a year?

I think the extra mortgage payments sound like a great idea.

And by all means complete a net worth statement, at least once a year! It's a great opportunity for financial reflection both as an individual and as a couple.

[Goldy]

I would recommend creating a net worth excel sheet and updating it every month instead of every year. Every year wouldn't give you enough detail.

I do this each month and it takes me less than 5 mins to pull my investment balances thanks to mint.

[klarose]

The main things I see is that you should be putting that extra $1,000 towards your car loans. I'd pay off at least 2 of them before sending extra to the house.

Also why is your roof going to cost $25k?

We replaced our roof in 2012 for less than $2K. And we hired out most of the work.

[ua_guy]

The main things I see is that you should be putting that extra $1,000 towards your car loans. I'd pay off at least 2 of them before sending extra to the house.

Also why is your roof going to cost $25k?

We replaced our roof in 2012 for less than $2K. And we hired out most of the work.

$2k seems low. Any additional details on house square footage, number of stories, roof complexity, materials you used?

At the very least we're replacing the roof with the same thing it's got on it, which is a 30y comp shingle. We'd like to go metal tab for longevity and durability, but those are more expensive. The tentative budget has been set high, but we expect it will probably be at least $18k based on some quotes our friends just got for a similarly sized home with a comp roof. Also, my father had quotes drawn to replace his roof before they moved about 2 years ago and $18k-$20k seems in line given the style of roof and materials.

[sandrark]

My priorities, given your outline, would be this:

1) Pay off the car loans with the bonus and the $1k per month. The cash flow matters. Snowball the second loan with the first payment too, and they should both be gone in ~8 months?

2) Max out all retirement savings accounts, and invest in after-tax accounts, up to 20% of your gross income. If you retire early, you'll need money you can tap without penalty.

3) Refinance your existing mortgage to a 15 year mortgage. You have the capacity to do that with your current income. And the enforced savings + reduced interest paid means that you'll be in VERY fine shape, even if you decide to buy another car. A "plan" to pay it like it's a 15 year loan is not the same as actually PAYING a 15 year loan.

You're on a good path!