Our truck loan is driving me crazy. Despite not owing a payment this month, because they applied previous extra principal payments as regular payments, when I went to our credit union to pay a principal payment, they took the interest out of it. Ugh. I wanted it to be at a nice even number, but I failed on that. This is serving as extra incentive to GET IT GONE.
When the truck is paid off, we will have an extra $551 in our budget. I think with focus, this could be done by February 2019, as we have some extra money coming in over the next few months (holiday bonuses and such).
We also want to buy land in cash this spring, but we currently only have about $6,000 in savings. Our plan is to pay cash for land, pay cash for a used RV and live that way for 6-8 months, while selling our house and using the equity to build a smaller new home. We need like $50-60K in cash to make this all happen.
We can save $2,000 to $3,000 per month with our normal budget (outside the 15% going to retirement). With the best case scenario, at that rate, it will take us 18 months to hit our goal and start moving forward. We want to start this in April 2019, which leaves us 6 months. While we both are expecting small raises in January, neither will be nearly enough to hit a savings rate of $9,000 per month.
How to come up with $26,000 extra in six months:
1. Mr. PoniesandFIRE takes the road pool job first quarter - $1000/month for $6,000 over six months
2. Sell my horse trailer (replace after resettled) - $7,500
3. Sell Mr. PoniesandFIRE’s motorcycle (replace after resettled) - $6,000
4. Sell excess household good and furniture - $1,000
5. Cut DishTV - $75/month or $450
6. Reduce our 401k contributions (I HATE THIS IDEA) - $250/month for $1,500 over six months
7. Commission from horse sale expected in March - $2,500
All of this gets us close, but still a little short. It may be a creative next six months for our family…