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miranova

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I finally received my payout from work, they owed me a little less than 2 months pay, but the taxes were higher than usual due to paying me in a lump sum, so the take home covers a bit more than a month's worth of take home pay for me. Since we use YNAB and budget a month ahead, I put the usual take home amount in for August's budget and put the rest into September's budget. (July was funded already with June's deposits). So August is fully funded at our usual amount. September will be the first month that our budget will be funded at a lower amount.

 

August is always ridiculously expensive for us with sports fees for the kids, scout registration and new uniforms, school fees, new school clothes, school supplies etc etc. I worked really hard this summer to spread out the spending. I have been buying school clothes for the kids one kid at a time whenever I get a 30% off coupon or whenever I have Kohl's cash. I have a bunch of Kohl's cash to spend today and I only have one kid left to buy for. I paid for travel soccer in July and also paid for running camp (For cross country) in July. In August I still need to pay for: one soccer uniform, cross country "mandatory donation", scout fees times two, new scout uniforms times two, and racing fees for one. School supplies do seem to settle down a bit as the kids are getting older. I will buy those during tax free week. I brought home a TON of things from work like 3 ring binders etc that I had purchased with my own money over the years, so I will shop from that stash first. I'm still concerned that I don't have enough in that sinking fund but it is what it is.

 

We spent almost $1000 in medical in July (mostly dental visits for the kids), so I had to build that sinking fund back up as well. We do get partial reimbursements but dh's ex generally takes like 4 months to pay for anything, and in the meantime the sinking funds needs to be refilled for the next thing.

 

We close on the house we are selling next Monday. It's served us well. I lived in it for 2 years and rented it out for 5 more. Now, we will get a huge lump of cash out of it (I put a lot of money down).

 

Our plan for the money:

1. A big chunk into 529's for each kid.

2. Finally finishing the laundry room, about $2k for this. Cabinets are ordered and are the bulk of the cost. Then it just needs paint, baseboard (which we already have) and a few odds and ends. We are keeping the current washer and dryer. May replace the chest freezer with a larger upright model if we can find a good one on craigslist.

3. Buying an outbuilding for storing stuff for the business, not sure how much but it's looking like $3k.

4. paying off our 2nd mortgage on our primary home. YAY! Our main mortgage will be down to "only" about $190k, which we will snowball.

5. invest the rest in down payment for another rental house to be found and purchased this fall.

 

Meanwhile we are closing on a rental home next Friday as well and hope to have renters in it by September 1 or earlier. It only needs paint.

 

It remains to be seen how much we can take from the rental business monthly to replace my income. To maintain our current standard of living minus Roths we would need $1300 per month from the rental business. We already take $300 a month from it so that's another $1000. (I did make more than $1000 per month but this is taking into account lower taxes, lower tithe and no roths).

 

We can't take another $1000 yet, so sacrifices and choices will have to be made. We saved up all the Roth money all year so we have about $7300 just sitting in the Roth category that could be pulled from if needed but we don't want to. We are going to try to make it through December and if we haven't needed it at all, we will just send it all to Roths. But it's nice to know it's there if needed.

 

I have no idea how this will all shake out. But we have health insurance, we have a house to live in, we can buy food. It will all work out somehow.

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I'm sure you will find with one parent home, things in almost every category gets a little bit lower. The stay at home parent does not need a big clothing line, eating out line, blow money, etc....While I enjoy working outside of the home, areas in the budget had to increase to cover me working. Give your budget 6 months to adjust. If you are still short, then look at some work you can do to cover the shortfall. Good luck on this new adventure!

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Yeah, it's been in the works for awhile but I didn't want to jinx it too much since the first contract fell through. This couple has already paid $13k in earnest money and already scheduled the change in electric so I think they are serious! We close Monday at 10.

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Best wishes on finally closing the deal on the house. After school starts and things settle dow, you may have some time to consider ways that work for you to make some money if you find the need to. Online tutoring is one possibility.

Part time and choose your hours. Just a possibility.

 

 

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Awesome news on the house! It cracked me up reading your update because parts sound so much like me right now. As you know I just transitioned out of my ft job into self-employment with a somewhat uncertain income. I can definitely vouch for the power of budgeting one month ahead and using last month's income for this month's budget...it's a really nice buffer whenever there's an income level change! Hopefully your transition will go easily like mine has and you will see the affirmation of your choice in peace of mind and soon in financial blessings!

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I know is personal finance but i would prioritize filing the roths before putting any money in the 529s. I wouldn't want to liar that tax advantaged space.

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I would prioritize the Roths too.  I would also deposit the $7300, your Roth is still there if you need it but you'll be less likely to spend it if you have to go to the trouble of taking it out.  Don't forget about setting aside taxes for capital gains/depreciation recapture if needed.

 

My list would start:

1. set aside taxes

2. payoff 2nd

3. ROTH

 

I know you all will work out the budget and adjust to the new lifestyle/income level and thrive!

 

Hey, we never did get the pics of the new bathroom, did we?

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We shouldn't owe any taxes on the house sale; it was awhile back but someone here helped me find the tax laws on a personal residence converted to a rental and we went through every calculation and we are in a strange situation where we will have neither a gain nor a loss on the sale. I have it all saved on my computer somewhere.

 

I do agree baby step 4 comes before 5, but we've been overfunding step 4 for awhile and 3 of the kids have no college funds whatsoever. Technically we should have been doing that before step 6, so we are just putting a big chunk in and letting that be their college funds. Also we are still contributing to dh's 401k and hoping to send that $7300 to roths which, with the absence of my income, will bring us over 15%. Just not ready to throw it until we have a couple months successful budgeting done. I won't have a true test of that until sept or really October actually since September still has a portion of my income in it. We see it as a challenge to not use that money so unless a big emergency happens I don't think it will disappear.

 

I appreciate the viewpoints, trust me, retirement is always on my mind.

 

As for the bathroom, I think you are right! I never posted pics. For awhile there we were living with it half done so I forgot. I will take some good photos and post them soon!

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The house closed! We put it on the market April 21st, had a signed contract about a month ago and closed today. All together not bad for our price point. We had been told it takes an average of 3-4 months for houses at that price point and that turned out to be pretty accurate.

 

We have a clear to close on the one we are buying and that is scheduled for Friday. We have the paint ready to go and can't wait to get in there. This is not the best weekend to close on a house since we will have family in town and it's my oldest son's birthday, but it is what it is. We will probably work on it during the evenings next week.

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