This month started a new chapter – Since I finished paying off my student loans last month (Yay!), the next step to buying a house is saving for a down payment.
Houses, don’t come cheap, well in VT they are much cheaper than in Boston, but they are still cost a pretty penny. Luckily, my Uncle is looking to sell, so we can cut out needing a realtor (usually costs 6% of purchase price), so we are getting quite a deal. Plus, being down the road (8 houses away) from my parents will convenient!
So, before I go into all the boring $ details… here’s what all this hard work the past couple years (and the next 6 months) is going towards…
This is adorable little cape is what we’ll soon call home. Little is an understatement. It’s 2,960 square feet (that’s almost 5 times the size of our old apartment in Boston), 4 bedrooms, 3 bathrooms, + FROG (finished room over garage) Room, oh and a wood stove!!! … and the basement is a finished 1 bedroom, 1 bathroom apartment, with it’s own laundry in addition to the laundry on the second floor. Yeah. CRAZY! Crazy to think this could be ours!!!
It does give some serious motivation – so back to business…
The goal is to save as much $ as possible before this fall (Sept/Oct-ish) when Uncle John will be ready to move into his new apartment and sell the house, plus it’ll be nice for all of us to get moved before the cold weather comes. The bigger the down payment, the smaller the mortgage – so more money saved is best. This gives me 6 months to pinch pennies and come up with as much $ as I can – seeing as I’ve been pinching pennies for almost 3 years now, I know the drill.
So essentially all the $ I put towards loans every month in the past, is now going into savings. Simple plan, right? Well, no plan is complete without an excel spreadsheet!!! (So organized it’s annoying, right?)
Thankfully, this one is much less complex than the one for paying off my student loans – I made a budget, listed my income, my expenses, and the difference is what I should be saving every month. I divided that number by 4 or 5 (the number of pay days that month) and that’s how much $ I should be able to put into savings every week. ‘Should Be’ is the key in that statement, because we’re almost thru April and I’m already finding I have more unexpected expenses than planned, thus I haven’t saved as much as hoped. I’ll have to up my ‘misc spending’ category next month.
Anyways, I’ll spare you the detailed, yet boring, excel sheet and keep track with this:
As of April 1st, I had $1800 saved. The goal is $10,000. Why that number? Because I know it’s attainable, and I’ll probably be able to save a little more than that (hence the higher numbers on the spreadsheet), but unexpected things come up, so aiming for $10K won’t kill me, but will def. make me work hard for it. Plus, it’ll mean about 7-8% down on the house, which will give us a manageable mortgage (you should see the spreadsheet for those numbers… on second thought, maybe not… then you’ll really think I’m crazy)
I’ll be back soon with a May 1st update, since this one is so very late. Crazy to think May is almost here and we’ve already been back in VT for a year. Even crazier… we’ll be HOME soon. Been such a long long road… this is the home stretch.