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Home > Equity Goal and 52 Week Savings

Equity Goal and 52 Week Savings

February 15th, 2015 at 03:38 pm

I'm not sure I've been clear on my blog this year about our savings. I am still participating in the 52 Week Savings Challenge. And I do have a goal to increase the equity in our home (up until the point we sell).

We are saving $57 each pay period (twice per month) for the

Text is 52 Week Savings Challenge and Link is http://www.savingadvice.com/articles/2013/01/10/1013660_52-week-save-money-challenge.html
52 Week Savings Challenge. Clearly I made my own rules. The end goal is the same saving over $1300 by the end of the year. Last years money saved in the challenge wasn't ear marked for anything in the beginning. In the end we used that money for my daughter's band trip this spring. It was perfect because we already had some money saved to put towards the deposit. Then when it was time to make payments we always had money in this fund to cover them. We make our final payment (from last year's savings) on Tuesday.

This year we don't have a plan for the money yet. For now we will save. If we don't have a need for it by year end, I may actually consider investing it! And just start again next year.

I think I may have mentioned the equity goal. Ha. Just went and checked and yes, I have mentioned it.

The paying off $5000 in mortgage equity will be a combination of things. I'm currently adding $104.94 to our mortgage payment towards principal. It makes for a nice even mortgage payment. This means we pay off more than $585 each month. For six months, that pays down $3510 on our mortgage. That means I'm short of the goal by $1490, or $248.33 per month. Last month, I set aside that amount and will continue to do so through June. By the way the end of June is the deadline, as I'm going to guess that is the month we will close on this house when it sells.

I'm making a point to save $124 each pay period for the equity/mortgage goal. I currently have $372 set aside. I will be setting up ticker on the sidebar soon to track our progress.

I will admit it was tempting to use some of this money to pay down my tires this last pay period. But I'm standing strong, knowing there will be more cash flowing in that can be applied to my tires. We did jump ahead on getting tires since it is the time of year where good tires are especially needed and my husband was around to do the drop off of the vehicle, while still getting my girls transported. Otherwise, it may have been better to wait for cash on hand. (We do have a healthy emergency fund...but this wasn't an emergency.)

It feels good to save each pay period for our goals. In fact I know we have to pay $638 when we file our taxes. I'm saving $105 each pay period through the beginning of April to come up with this money. I currently have $315 set aside, so we are right on track to have the money when the time comes.

These are just a few items I'm working on saving for, in addition to retirement and college. What kinds of things to do you save up for?

Posted in Saving | 5 Comments »

5 Responses to “Equity Goal and 52 Week Savings”

  1. scottish girl Says:
    February 15th, 2015 at 05:13 pm 1424020407
    1424020407

    I'm only trying to establish an EF, nothing else.

  2. VS_ozgirl Says:
    February 15th, 2015 at 09:07 pm 1424034468
    1424034468

    Establishing the EF and credit card repayments. I agree with you, it does feel good to save each pay period for your goals. All you need to do is adjust your spending to pay minus savings (ok sometimes it's not so easy) and watch your savings grow each period. Feels like a win every time.

  3. snafu Says:
    February 15th, 2015 at 10:19 pm 1424038787
    1424038787

    I think the really hard part is the planning. What irregular expenses can I anticipate? What expenses will vehicles cause - tires, oil changes, brakes, spring tune-up, repair, manual suggest maintenance? What's missing/needs to be replaced in my wardrobe and clothe for others in the family? Special occasion spending for birthdays, special events, work holidays visitors etc. Most difficult is trying to assess if W/D, fridge or some major appliance will be problematic.

  4. rob62521 Says:
    February 16th, 2015 at 12:59 am 1424048368
    1424048368

    I agree with snafu...planning is the hard part. As for creating your own rules on the 52 week plan, hey, if it works for you, then go for it!

  5. FrugalTexan75 Says:
    February 16th, 2015 at 02:34 am 1424054067
    1424054067

    I'm working on my EF Smile

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