Sunday, March 3, 2013

I Pick Plan 2013.3.3 revision D

I've thought of a few plans.  I always seem to have a plan A, B, C, etc....and this time is no different.

Plan A is to pay off the mortgage on this house.  That won't work because it will take 4 years and I only have 4 years to spend with my nephew.

Plan B is to save up 25 times my yearly expenses.  That would take much more than 4 years.

Plan C is to quit now and get a part time job.  This is possible since I only need an additional $541/m if I am receiving rental income but it still makes me feel financially insecure.

Plan D is to work for another 11 months, save up $2,000 a month to equal $22,000 + rental income which is what I would need to cover around 3 and a half years of expenses.  This, along with the $10,000 emergency fund that I already have, would give me a nice cushion to fall back on.

I could go on with the plans, move to my old place, rent out this house, etc... but that would take more money than I have available and time is ticking away.

For the moment, assuming I can keep going to my job and not have a major tizzy and quitting, I pick Plan D.  11  months isn't that far away.  I can do this.  Well, it might have to be 12 months because I have an out of state wedding to go to in June and that is going to take up some money.  I need to start watching my expenses more closely and trying very hard to save $2,000 a month.  It will be a lot easier to do once my house is rented again.  I will have 3 years and 4 months to do stuff with my nephew, if he still wants to hang out with his old auntie.

After I save the money, my goal will be to not use it.  I will try to earn enough each month so that I don't have to touch my savings and it will just be a giant emergency fund.  I don't know what I will do after my nephew moves on to college.  Hopefully, I will have figured out some sort of home business or new career by then.

Also, in order to survive the next 12 months, I have decided to take at least one day of vacation a month.  That will give me a 3 day weekend to look forward to every few weeks and 2 three day weekends if there happens to be a holiday that month too.  This month I want 3 three day weekends.  I get one holiday and I will use up 2 vacation days.  I wasn't going to do it until later in the month but I need to spend more time at my rental house making sure the A/C condenser is safe so Friday I will be digging holes and pouring concrete for a new gate.  It better not get stolen again.  I can't afford it.

Anyway,  I like my new plan.  If I can stick with it, I think it might actually work.


Lizzie@her MFW Homeworld said...

Excellent idea. Well done you!

Daizy said...

I hope I can stick with it. 2 days down. Only 363 days to go (if I do a whole year.)

theo said...

Congrats on the escape plan. I've been following your blog (from NY) for a few years now and I am happy to see you move in that direction.
Been there done that myself, though under different circumstances :)

Daizy said...

Thanks theo. My plan has found numerous stumbling blocks in the last week. Hopefully I can get over them because I would really regret being too busy at this time of my life. Next thing I know he will be off to college and it will be too late.