Okay, so we have made some decisions over the last week, yay! It actually ended up being a pretty easy decision when we looked at the numbers. Here is our plan for the rest of the year.
Our Financial Plan for 2013
So I took a closer look at all of our savings accounts and that helped make up our mind. With the $2000 we added to the mortgage payoff total at the end of our own budget month, that savings came to $17,000. We also had $3000 set aside so far for our Roth IRA’s for 2013 that we could pay back before year’s end. Seeing that $20,000 ready for the mortgage payoff pushed us to the conclusion that paying off the rent house mortgage just needs to happen.
Sooooo, we’re going to borrow $2000 from our emergency fund and pay off that loan within the next 3 weeks. I’ve already requested the official payoff quote.
Once that mortgage is nice and dead, we’ll spend the next 6 months paying ourselves back. We’ll owe $2000 to our emergency fund and have to build up $11,000 for the Roth IRA’s. I will look into refinancing our current mortgage in May 2014 after we have two tax returns that show nothing but our self employment income. Throughout all of that, we will take a close look at our goals and savings all over again and decide what our next steps will be.
As a few of you pointed out, at least this loan payoff will mean that we will always own at least one house outright and we’ll be freeing up about $500 a month. That’s cash that can be used on whatever our priorities are…paying ourselves back, saving for retirement, new investments, etc.
Long Term Plans
By the end of 2013, we hope to have some plans in mind for the following few years at least…although it does seem that priorities change often enough that goals are generally suggestions to ourselves rather than rules set in stone. Our main goal is to be financially independent as soon as possible since the main fear of self employment is instability. We hope to continue our current business as long as possible, but it will feel way better to do so if it is by choice. Financial independence is a sort of power in my mind. The power to choose your path without the fear of losing your home or needing to make drastic changes at a moment’s notice based on your income. I like the power of choice.
What are your financial plans? What is your largest financial goal?