Sinking funds. I have so many, but they give me peace. When I bought my house I started a home repair fund, best decision ever and later a mortgage fund. The goal of the mortgage fund was to save three months payments, in addition to my EF. By the end of this month, I’ll have the three months mortgage saved.
I’m so excited about this! Just knowing that I have at least three months of mortgage saved, not including my EF, is amazing. Once I hit that goal, I can throw the extra cash at my EF. The goal of my EF is to have six months of expenses saved. I have a way to go but definitely believe I’ll get there.
I signed the documents to lock in my refi rate of 2.70. In my excitement to post I was thinking my total payments would drop close to 50% but the numbers I was looking at was only the P&I. I forgot about escrow, over all based on the recalculation I’m looking at a 30% decrease, that includes P&I as well as escrow. That’s still significant and will help me knock 🥊 this mortgage and student loans out sooner.
Today was pay day, I managed to save 51% of my income. This include my monthly mortgage payment. If I close before the first, I won’t have to make the July payment. I also, added an extra $100 to the student loans. Though when I look at the balance, my payments look like pennies, I know eventually this will change. In the past I paid for my degree, I have no idea what possessed me to take out a student loan, oh well, can’t cry over spilled milk.
Finally I feel like I can breath, that I can make head way. I’m saving and paying off debt, and it feels good.
Saving, and Paying Off Debt
June 12th, 2020 at 10:53 am
June 12th, 2020 at 01:05 pm 1591967150
June 12th, 2020 at 02:36 pm 1591972562
June 14th, 2020 at 05:43 pm 1592156583
We have what you call sinking funds too for different things. It sure encourages us to save so we have money to do things without incurring debt.