My husband has the opportunity to buy service years for his pension. We can buy back 47 months which will enable him to get a 20 year pension at the age of 60. The cost to buy the 47 months is $8,745.99. I am hoping to come up with that amount of money before June 30th so that we don't have to use the emergency fund to cover this expense. Our emergency fund is close to $20K, an amount I feel comfortable having. I'm also hoping to save instead of deplete the savings even though we will soon be a one-income family. Unemployment benefits should help us cover our summer monthly expenses since I am ten months employee. Will I make it? I hope so!
Archive for May, 2013
In April, as many of you may already know (for the newbies) my husband and I paid off the house mortgage and the car loans. By doing so, we cut our bills by $2,544.00. My husband's job has been on the line for quite sometime now and that inspired us to become "gazelle instead" (Dave Ramsey and sorry if you're not a fan)and pay $275K in about 36 months. Yes, we did it by putting every extra cent towards paying our debts and selling our rental home as well as using a good chunk of our savings. Well, last week our biggest fear came to a reality. My husband was not given a contract, therefore he will be officially unemployed on June 30th. He will apply for unemployment benefits as of July 1st. I write this, not for you to feel sorry for us, after all we will be okay with my income and cutting back on things. I share our situation so that maybe I'll inspire you to become debt-free. Had we've not paid off our debts, we would be in big trouble.
I must confess that our emergency fund is kinda low for my liking. It sits at $16K and since we've been doing some expensive home repairs, I (we)have not been able to make any dents. To top it all off, my hubby's job is on shaky grounds right now. I can manage the bills with my salary, now that the mortgage and car loans are gone, but the emergency fund is causing me to worry a bit. I decided that I'd like to have the EF up to $35K by December 31, 2013. Besides this challenge will keep me motivated to continue to set financial goals and build some wealth.
On Tuesday, the pool company will come to replace the liner. We already have this money accounted for. We are also working on the front and rear yard landscape and we've budget $500 for this, but I think we'll come under budget for this project. I'll try to post before and after pictures.
Today, I'm going to Yankees Stadium with my girl friend. The tickets were free, courtesy of my friend's ex husband. I'll chip in for gas, parking and food. It should be a great day to see the Yankees play with temperatures in the low 70s today. I'm also planning our next girls' night out and we will probably see Newsies on Broadway. I also got my passport the other day and the France/Spain trip is fast approaching. Cannot wait!!!
This is my update for today. I hope you all have a wonderful and frugal weekend.