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Author: ThyPeace Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308833  
Subject: August ThyPeace Update Date: 8/23/2012 11:02 PM
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My finances have mostly been left to their own devices since my last post, back in December. I simply have not had the energy or time to worry about anything more than paying the bills. Tonight, however, a combination of free time and a financial question finally motivated me to do it.

And WOOHOO, there is a happy dance to be done!!!! Tonight I scheduled the final payment to pay off the family loan that has been building DD’s 529 account for the last 9 years. It will post tomorrow, but I’m claiming it now.

And another reason for a happy dance: I’ve made it to more than $100k in debt paid off since I started working on this back in 2006. All that remains now is my mortgage. (See below for thoughts there…)

Here are the numbers:

				5/31/2006	12/30/2011	
401(k) Loan: $29,173 Paid in full
Family loan/college fund $32,965 Paid in full
Family loan/car ($5k in 2008) $ 0 Paid in full
Total Non-Mortgage: $62,138 $ 0

Mortgage: $283,306 $ 243,903
Total all debt: $345,444 $ 243,903

Total paid: $101,541


On to the reason for the update in the first place. Because of the storm damage, additions to the house that I thought could wait a few years have become more urgent, and are going to be more extensive than I thought. Insurance will pay a fairly small part of the total, because what I want to do fixes poor construction that was there to begin with as well as the damage the storm did. The rough estimate that I have is that it’s about 1,000 square feet (a combination of added and completely rebuilt space). At $200 per square foot (the going rate around here) plus architects’ fees, that’s $225,000.

That’s a lot of money. If I look at the amount I’ve paid off in the last 6 years, I can figure I could pay it off in about 12 years. But that’s 12 years of money that doesn’t go toward retirement, DD’s college fund, vacations, parties, and pedicures. (I’ve never had a pedicure. But a girl can dream…)

There are good reasons to do it. DH will finally move to my house sometime in the next three years. He will be moving from a 4-bedroom home on 2 ½ acres, and while he’s resigned to leaving the riding mower behind, he would like to have a place for the LaZBoy, the flat-screen TV, his 4-poster bed and his clothes. All those will be tough in my current space.

The insurance will probably cover 10% of the total cost of the addition. I have savings that will cover another 10%, though that would dip into the e-fund some. When DH sells his house, he will hopefully net another decent fraction of that, but probably less than half of what I’m thinking about. And that’s future money, not available-now money.

This is something that, on some level at some time, will have to be done anyway. Construction problems don’t heal themselves. So the question is, how to finance this work, and whether to do it now as part of the storm damage repairs, or do the repairs separately.

I have not even come close to deciding, and independent wealth still escapes me. Ah, well. Onward!

ThyPeace, really likes the idea of independent wealth, but squandered her youth on science instead of building it.
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