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URL:  http://boards.fool.com/thanks-everyone-were-still-working-on-our-plan-20799004.aspx

Subject:  Re: Just starting to save Date:  5/21/2004  11:24 AM
Author:  2FoolsInLuv Number:  169606 of 736963

Thanks everyone!

We're still working on our plan, but here's what we're thinking right now:

1) $28,000 is a bit cash heavey, so I'm think I'll pay off my car in August. I will be able to walk to work because we'll live just off my campus. My car will probably just sit during the week, so I can easily get 10 years out of it.

2) We'll take the $255.63 a month I was spending on my lein and dedicate that to a fund for a new car for my fiancee. We want to get 2 more years out of the car she drives now. By putting that $255.63 aside now, that will be over $6000 towards a new car, plus what ever interest it accrues. Now we don't have to dedicate any of the extra $800 to her car.

3) The student loans aren't a HUGE drag on the finances because the rates are so low. I'd like to get the principle of mine down a bit, and then pay it off over time. The interest on the smaller loan is almost negligible. I'll probably dedicate an extra $100 a month to the larger loan.

4) We want to be able to take advantage of savings on purchases when you pay up front. I saved a huge amount on car insurance two days ago by paying the entire six month premium (for both of us), instead of paying month to month. So now, part of the $800 will go towards a fund (on paper) to paying insurance off every six months. Not only will it bring the cost of the plan down, but it will cost even less since we'll earn interest on what we're saving before we pay for it.

5) We both have family that are out of state, and would like to visit at least each once a year. We have to fly to get there, so we're going to dedicate some of the $800 to a travel fund (on paper). Just like with the car insurance, this will help us bring down our monthly expenses too. Instead of increasing a month's budget to buy a plane ticket, the fund will be established.

6) The rest will be split between a down payment, our emergency fund and some a DRIP fund. The DRIP fund will stay small for now - probably about $100 a month. After paying off the car, we'll have about $16,000 left in cash. I want to bring that back up to $21,000. The rest will go towards a down payment. But, we'll probably try to stay in our faculty housing as long as we can. Maybe forever, who knows? But, if we have enough for a down payment, we will look to buy a rental property.

Thanks again!
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