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An update

April 6th, 2013 at 06:07 pm

I've not posted here in four years!

My financial situation goes up and down. I struggle to maintain an ongoing savings plan and change my priorities regularly. I think the real challenge is that I don't have clearly defined life goals. I have goals for this month or this year or for the quarter, but the sort of guiding plans are difficult for me.

I work for the state and am vested in the defined benefit pension, and will soon be vested for retiree health insurance too (full insurance until I am eligible for Medicare, supplemental from that point forward). I have conventional and Roth IRAs but don't regularly contribute to them.

My partner and I own a two family house and rent out the first floor for about $900 per month. It's a big old house and I must admit that most of the rental income goes straight back into the house for maintenance, repair, and capital improvements. The upshot is that if we stay in the house long term, the rental income will pay the maintenance, taxes, and insurance when we finish paying the mortgage.

I had an inheritance and bought a one bedroom condo last Fall. That's rented now and brings in about $500 in income every month. I'm saving the income now to capitalize a maintenance and repair fund for the condo. I've owned condos in the past and realize that special assessments can come at any time and it's best to be prepared.

We keep our living expenses fairly low, we own one car and only drive it about 8000 miles a year; we don't take expensive vacations, just go visit friends and family. We keep things together but are not models of financial responsibility. We both have excellent credit.

Posted in Uncategorized | 3 Comments »

3 Responses to “An update”

  1. snafu Says:
    April 6th, 2013 at 09:14 pm 1365282846
    1365282846

    Are you and partner happily content with your current situation? What would you like to do to give you joy? How many years to pay off 'big old' house? In 5 years you would like to_______?

  2. rob62521 Says:
    April 7th, 2013 at 07:05 pm 1365361505
    1365361505

    Sounds like you are smart cookies living below your means and being careful with your spending. Good job!

  3. JBL Says:
    April 20th, 2013 at 06:30 pm 1366482659
    1366482659

    Snafu, you know what, we are pretty content with our situation. We (me, mostly; I'm the one who worries about things) were a bit stressed with our house at first. It's a lot of work and had a lot of problems which were pretty stressful to get under control. Now I feel a lot more in control. We have a LOT of years to go on paying off the house. 30 year mortgage, 4 years in. We pay the minimum right now and will continue to for a while. Our car will be paid off in a couple of years and then we may try to accelerate the mortgage payments. Right now it's just not practical in our budget.

    In 5 years... I'd like to have the major home repairs settled and the house set up as a comfortable home. I'd like to be able to budget for some travel; we have friends and family all over the country and all over the world, would be wonderful to see them!

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