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.