FYI: We will not be hosting Easter this year. Easter falls on the same weekend as the My Little Pony conference and our bathroom will be ripped apart for a remodel.
Mortgage is below $180,000 now. Whoa. And I am taking out a huge loan so I can be more in debt. Oh man that seems stupid. But I want to fix all this stuff. How am I going to pay off not only this $180,000 but an additional $100,000 in the next six years? Realistically… five years.
How am I going to do this? Technically, the HELOC is a lower interest rate than my mortgage. And the HELOC will have an early repayment penalty. It is kind of feeling like rolling a bunch into the mortgage is smartest. The HELOC has to take at least three years to pay off. And the more I send to the mortgage the faster I pay it off the less interest over time. I’m already to the point where each payment is way more than 50% principle.
I’m feeling ridiculously tempted to send $20k to the mortgage. I want to do it. I don’t want to do it. Oh man.
I have ~ $105k in cash and ~ $180k in current debt. That means that between where I want to be and where I am right now I need to come up with an extra $200k. Pretty much. In five years. On top of all the ridiculously expensive things I like to do, like travel.
To me, that sounds like this year I have to pay a minimum of $50k on combined mortgage/HELOC if I want to stay on track.
No pressure. It seems completely insane to me. I doubt my mom has ever made $50k in a year. I made that much money my first year working as a teacher, barely.
Hm. How is this going to work out?
And I will do this while maxing out 401Ks, IRAs, 529s, and doing some additional random mutual fund investing.
Ok, I just sent $10k to the mortgage. That means I’m flirting with $50k in our primary checking instead of $60k and I can live with that. That’s enough heading into the remodel and travel. At least $20k of that will go into the remodel and the traveling will be in the neighborhood of $10k. But the travel money will come out slowly and mostly just look like barely expensive months. By the end of this year I will probably be able to send an additional $10k to the mortgage. That means that by the end of the year my mortgage principle will be below $150k. With four years to go. I’m going to be paying $50k-$60k for the next few years. Ouch.
But then, before I’m 40 years old, we will all of a sudden have a place to live that is paid off. Our relative income requirements will drop through the floor. We will owe ~$6k/year for taxes and then whatever maintenance costs.
I’ve lived in the bay area my whole life and I’ve been poor for more than 2/3 of my life. Needing this much money is crazy to me. Some day my house maintenance plus taxes will be less than $1,000/month. That will include utilities because the solar on the roof is awesome. That’s an amount of money I can come up with to keep my family safe. Food will be a different challenge.
Right now mortgage plus taxes plus maintenance fees is more like $4k/month. I… I can’t be the sole wage earner and keep that ship afloat. I feel pathetic but I can’t.
I’m scared of the future. I believe this period of being rich will be brief. If I don’t secure my future I will be in a lot of trouble. I’d like to be relatively sure I will be able to live in the future on less than $30k/year. My garden is coming along! Not there yet, but I didn’t want to be there yet. I want my garden to be pretty much ready by the time I’m 50. I’ve got time.
Calli has been telling me frequently that I’m not allowed to die. When I raise an eyebrow at her and kind of smirk she says, “Well… you can die of old age when you are 90 or something. BUT NOT BEFORE THAT.”
That’s rather a big deal to someone like me.
I’m trying to prepare for a future even while I’m scared I won’t have one. Even while I’m scared I don’t deserve one. Even while I’m scared that some day I will be in too much pain to continue and I will kill myself early. I’m trying to live as if I will live until I am 90 so I must take steps. I’m trying to show my kids how to take care of yourself for your whole life.
Noah is home. I missed him. I feel very lucky that if I am going to be stuck on this stupid, hateful planet for 90 years–at least I get to do it while spending most of those years with Noah.
By the time I’m 90 I will have spent less than 2/9 of my life in horrible poverty. Whoa. Perspective shift.
If I live in this house when I’m 90 then I will have lived here for 65 years. Whoa. I’ve already lived here for 8 years and that feels wacky. In June, right before I run off on my road trip, I will have lived in this house for three times as long as I’ve ever lived anywhere else.
Wonderland is working for me.