Housing Situation Change: Savings

This change in housing situation is affecting my savings and cash flow. As I detailed in Monday’s post, my housing expenses are changing for the next few months. Things are definitely in flux. My expenses are going to come in under my paycheck amount each month, but things are going to be far crazier than normal.

Here is what my savings look like right now:

  • Auto insurance deductible: $1,020
  • Health insurance deductible: $1,020
  • Renter’s insurance deductible: $510
  • Vehicle replacement fund: $250
  • Taxable investments: fully re-paid
  • Emergency reserves: $21,600
  • Down payment, closing, and moving costs fund: $56,800

I’ve re-arranged money out of the down payment fund into my emergency reserves so that they are fully stocked. I also transferred money from my stock vest last month to my emergency reserves, as I would have done right away if I wasn’t in the process of closing.

When I get the earnest money back out of escrow, I will finish re-paying the vehicle replacement fund and then put the rest of the money into the down payment, closing, and moving costs fund.

My income tax refund, which will only be a few hundred dollars since I calculated my tax liability well this year, will also go towards the down payment fund. The rest of my discretionary savings (after investing 20% towards retirement) will go towards the down payment fund as well.

If I wait 6 months to look at buying a place again, I would have saved at least an additional $5,000, which would go towards the down payment, closing, and moving costs fund, or if I wait until the end of the year, about $10,000 more.

Overall, I’m actually feeling strangely happy with this change in housing situation for the next few months. I’m going to be able to sock away some more money and perhaps I will find a better place to buy in a few months. Plus, I will be in an even stronger financial situation as the year goes on.

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  1. #1 by Michelle on February 15, 2012 - 7:14 am

    Good job on all of the saving. Waiting sounds like it would be a great choice for you. Either way, you have a lot saved! Good job!

    • #2 by Leigh on February 15, 2012 - 9:49 am

      Thanks, Michelle!

  2. #3 by SAra on February 15, 2012 - 2:46 pm

    Did you decide not to buy the condo? I am really confused, because there was no post about that, I don’t think. Am I missing one?

    • #4 by Leigh on February 15, 2012 - 3:56 pm

      Closing didn’t end up happening, unfortunately. When I looked for an apartment, I didn’t know whether closing was delayed or not happening. I’ll write a post about this once I’ve collected my thoughts better in a few weeks.

      • #5 by SA on February 17, 2012 - 3:03 pm

        Oh, bummer. But best of luck! I’m sure you can find another nice place while interest rates are still low.

  3. #6 by NoTrustFund on February 16, 2012 - 6:25 am

    Sorry the condo did not end up working out. Great job with the savings.

    We had a house purchase not work out recently. Although we did not get as far in the process as you, I already had the down payment money and other expenses spent in my mind. A few weeks later, it feels like a relief to still have that money sitting in our savings account! Hopefully you will feel the same and find an even better condo shortly.

    • #7 by Leigh on February 16, 2012 - 4:45 pm

      Thanks, NTF :) It has been a bit of a rocky ride, which I will talk about in a couple of weeks when my head is a bit more clear.

      I definitely had the money for even replacing the towel rods spent in my head! And I need to call and return the appliances – right now their delivery is just postponed for awhile so I had some time to deal with moving and the other more urgent things. Having my down payment savings account be pretty large is kind of nice, but I wish it was equity in a condo that was mine instead! I really want to be putting down roots.

  4. #8 by Christa on February 16, 2012 - 9:51 am

    Numbers look great! Good luck with your housing choice!

    • #9 by Leigh on February 16, 2012 - 4:43 pm

      Thanks, Christa!

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