With my current savings calculations, I’ll have about $2,788.33 leftover if I pay off my mortgage at the end of 2015. My current plan involves making the following extra payments to stay on track:
February 28th: $18,710.71 – net of my signing bonus and savings from February paychecks
March 31st, April 30th, May 31st: $1,873.21 – savings from paychecks
June 30th: $25,873.21 – emptying my savings account down to $20,000 and savings from June paychecks
July 31st, August 31st: $1,873.21 – savings from paychecks
September 30th: $11,461.73 – a small bonus and savings from September paychecks with Social Security tax done with for the year
October 31st, November 30th: $2,542.42 – savings from paychecks
December 31st: $66,906.33 – savings from December paychecks, plus the proceeds of selling all of my ESPP funds (which my honest plan is to sell them as soon as the holding period is up, but I don’t know when that’ll be so for now I’m assuming I’ll just sell them all at the end of the year), emptying my savings account, selling my Series I Savings Bonds, and my taxable investments. I’m not completely sold on the idea of selling the taxable investments since I would then end up re-buying them at a higher cost basis not long after, so it would seem a waste of paying the capital gains taxes. If I don’t sell the taxable investments, then I’ll make a $33,252.89 extra payment in December (also leaving my savings account in place) and make a few more payments early in 2016:
January 31st (2016): $1,873.21 – savings from paychecks
February 29th (2016): $6,377.71 – a small bonus and savings from paychecks
March 31st (2016): $22,182.55 from savings from paychecks and emptying my savings account would leave $321.25 remaining, which I could then just pay off since there is $1,027.32 in the budget for the required mortgage payment :)
This is my only real goal for 2015 financially – paying off the mortgage. We’ll see how that ends up going. I’ll make my 2015 Roth IRA contribution in February from my savings account, but I won’t worry about the 2016 contribution until 2016. I’ll also contribute the maximum to my 401(k), contribute a bit to my Health Savings Account (my employer will contribute quite a bit, so I don’t “need” to contribute that much), and contribute to my Employee Stock Purchase Plan with a good discount, which I’ll then sell later to pay down the mortgage. I’ll come up with a more specific investment plan for the year later, but this is my general plan.
Readers, what is your plan for your finances in 2015?