Monday, August 18, 2008

What I Might Save For After I Pay Off The Mortgage, If I Have The Patience

The idea of paying off the mortgage is so I can find a fun job that doesn't seem so much like work. Something I am passionate about and something that makes me want to jump out of bed in the morning. That had better be one fantastic job because my number one favorite activity is sleeping in!

If my mortgage repayment plan goes off without a hitch (not likely, but I can hope) I will be mortgage free and totally broke September of 2010. I could quit right away and find that dream job or...I could keep my secure job with benefits and save more cash so that the dream job transition doesn't ruin me.

Here are a few things I should save for once my mortgage is gone:

-A train trip across Canada with Mummy! ($3,800= 2 months of saving)
-Replace emergency fund ($600x12 months=$7,200 = 4 months of saving)
-Health Savings Account contributions for first year ($2,850= 1 1/2 months)
-Health Insurance Deductible ($1,900 = 1 month)
-Car maintenance fund ($1,000 = 1/2 month)
-RV maintenance fund ($900 = 1/2 month)
-Travel fund ($900 = 1/2 month)
-Rental house maintenance fund ($3,800 = 2 months)

Total = 1 extra year of work at current job.

I have no idea if I will do that but it would make my financial life more 'safe'. We will see. (The train trip is a must though, I have promised that to my mom for years) Of course if I just can't bear to quit and want to work there forever I can save for the digging of a well ($36,000 = 1 year and 7 months more work) and then there is the house I want to build ($100,000 = 4 years and 5 months more).

Who knows what life will bring. Sometimes I think I have as many plans as there are seeds in a dandelion. The one thing I know for sure is that I want that mortgage gone!


Anonymous said...

I didn't want to discourage you last night by suggesting that you do replace that Emergency fund, and do think a trip with your Mom would be fantastic - a good reward for you, and really great time for the both of you and memories.

Have you thought of more seriously developing some income streams now? The e-bay - maybe you could go yard sailing once a month and only pick up things you think would really work.

How about that painting thing you were interested in on, was it motorcycles? You could practice on wood or something then advertise once in a while in some trade magazine or something, or thrify nickel.

You really should try and keep putting away for retirement after you reach your goal of a fun job. I hope you don't think I am nagging.

It is just that I am in a similar place to you - but older - and these are things that I am contemplating a lot. Hence my intense interest in your story, too.

Daizy said...

I appreciate all suggestion and comments! Keep them coming!

I have thought about ebaying items from garage sales but I thought I should sell my own stuff first. I have a lot to sell. I'm really bad at getting the motivation to list it though. The next group has been sitting on my chair for a month! I chose to pull weeds instead of listing stuff on ebay last weekend. Strange priorities, huh? But I must say my little tree area is looking better and the wider path makes it easier to avoid rattlesnakes.

I still haven't finished airbrushing the motorcycle gas tank to the owner's satisfaction. He wants me to re-do it until he is happy then he will sand it down and I can re-create perfection. I'm a bit intimidated by that. I'm also waiting for it to get cooler...perhaps October?

The retirement fund issue is perplexing to me. I am not sure when enough is enough. If what I have now will grow to almost a million in 30 years, is that enough? I can also split this property and sell 2 pieces leaving one for me. That's my back-up plan. Of course I could marry and have children and that would change my retirement outlook.

I don't want to spend so much time trying to fund every contigency that I miss out on time with my family and friends now. All of my family lives out of state and I only have 2 weeks vacation. That is the worst part of my job. I almost quit because I didn't get vacation for one year. I think they felt sorry for me and changed the policy so I got one week after 6 months. At my last job I was able to stretch my vacation since I worked a 4 day work week and I saw my family 4 times a year. I miss that.

Anonymous said...

No, I understand not wanting to be too busy. I have all these ideas of things I want to start, but I seem to rove the internet just to get more - instead of actually starting something. I didn't want to discourage your own plan, that is why I hesitated to mention.

The retirement pot is hard to say. When I bought my house at 38, I had $50,000 - had to do the paperwork for the mortgage - in investments and cash - That was almost 13 years ago and my investments and cash have increased over 6 times - or should I say HAD.

The 9% return is from the perfect world and in 30 years - a million ain't gonna be what it is now.

The land is a good investment though, also. It is just something that I think about being closer to the 65 than you. I say - well it went up 6 fold in the last 13 years - why not the next? I would be thrilled, I just don't think it will happen. Realistically.

I need to read Your Money or Your Life more in depth - I have just skimmed so far - but I think you do have the points where you don't waste the time you have in the pursuit of the dollar. You are more balanced than me in that way. (But I waste a lot more money on junk than you do)

Sallie's Niece said...

I think it's awesome you are going to pay off your mortgage so soon but I think you should also think about what you would rather be doing other than your current job. Why not try to get the fun job you were talking about now? Or start a separate savings for different objectives like travel. What do you dream about doing the most but you can't because you have a "regular" job?

Anonymous said...

Hey you got a mention on another blog I was reading. RV Home yet (or something like that).

Daizy said...

Ok, Anonymous, what's the blog's name? I am dying to know! I tried searching but didn't find it.

Daizy said...

Hello again, Sallie's Niece. Your questions have given me new ideas for future posts.

I am not sure what kind of job I want but I do know that it will most likely start at very low pay so that is why I want to get rid of the mortgage first. That has always been my quandry, should I get a fun, low paying job (probably in the arts) or a day job that gives me money to pursue art as a hobby. Problem is, my day job sucks out any creativity I might have had. So now I need to get rid of the day job and replace it with rental income.

I have a tiny travel fund now since I only get 2 weeks vacation. I would rather throw all the money at the mortgage and make it go away than save for other thing concurrently. I tried that once. I had every category including a wedding fund and a baby fund. After a few years I decided to get more focused. Now I just have the mortgage fund. I can get a HELOC if I need to have a wedding...just kidding:)