July Financial Update

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Great things are done by a series of small things brought together. 

~Vincent Van Gogh

If you haven’t read my Goals & other financial updates… post please head on over there first.

July was back to normal which is a relief. As you may recall we paid off our vehicle loan in March, started contributing 12% to our retirement & are debt free excluding the house (yay)!

At the end of June we started, drumroll please…a sinking fund. To a majority of people this would be a pretty mundane step but for us it seemed so out of ordinary. We’ve had a savings account for as long as I can remember & any unexpected or nonrecurring expenses were taken out of the savings as to maintain a consistent balance in our checking. We were adding to our savings each month (and with the expenses occurring infrequently) it didn’t have much of an impact on our savings. The sinking fund will be in a separate savings account which will keep it easier to differentiate from our emergency fund. Now that we are debt free, it seems like the next logical step to financial independence.

Now I didn’t go too crazy on the sinking funds. One is plenty to get us started as baby steps seem to work best for us. We don’t plan on replacing our vehicle anytime soon (cross our fingers) but you can’t start too early, right?

SINKING FUND
Vehicle 🚗

June 2017 $200
July 2017 $200

Balance $400

Desired balance? 15k???

Yeah, I know what you’re thinking. It’s going to take years to reach our goal at that rate! 6.25 years to be exact 😉 Progress is progress 🙂

As I explained in my Goals & other financial updates… post we are unsure if right now is the best time to funnel our additional money each month into paying down our mortgage. I’m more comfortable just setting it aside until we are more solid in how we feel on moving. I’m pretty sure winter driving might help us decide 😉 Or the opposite could happen & we realize that it isn’t so bad (excluding a few treacherous days) & we take the money & send a lump sum payment to our mortgage company.

July additional money saved for mortgage payoff:
$700

Balance $700 (this is our first month)

As always feel free to leave a comment or any questions you may have 🙂

~Rachel

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