Friday, July 11, 2008

Money Geekness

***I wrote this a while ago and saved it in notepad. I am posting it now for my record ***

Friday where my brain is allowed to float along is a dangerous thing. I started to look at houses. I want to buy a house next year. I think we will need at least 3% down. Than means if I want a home the size I want it will be 3% of 425000 12,750. We have 3k from my grandmother set aside. I have my fingers crossed that my mom might be generous and gift us another 12K from the estate next year. That would be awesome.

I really want to pursue my masters degree. I think that is the only way I am going to increase my earning potential. I don't know how else to do it. The problem is I also think I am going to need to take a second job so I can continue to pay down debt and still make payments to the new child support bill that I know is coming. I am so sick to my stomach about that. It takes as long as it takes. But a second job at a generous rate of 12 per hour will net 20 hours per week of about $170.00 its only about an 8K per year raise. A degree should give me an increase of abour $20K per year.

I can never remember if housing is supposed to be 25% of net income or gross income. It makes a big difference in the home we can afford. (Update: the answer is net income)


Really I am just mad about the numbers the house I want is just out of reach for us. We really can afford about a $325,000 home not a $425,000 home. I just am being greedy. I need to adjust my desires. Its too much pressure on us to get there from here. right now. I think we need to keep focusing on the debt pay off. We need to continue to contribute to a down payment fund.

I think my next steps are: Open the money market account. Open a checking account so I can get to the money when I need it. Perhaps ask payroll for a direct deposit change to $100.00 per month to go to the money market account so I done have to fuss with deposit slips every month.

Frustration... I just rail at the walls because I am not where I want to be. I want to own a home. I just do.

The third option is to be able to put down $ 85,000. Ha ha ha ha ha that is really stinking funny. Not going to happen from my pay check. Maybe in 10 years it will. In 10 years. If I spend the time to pay off my debt... Lets just run that scenario...

100 contribution per month
x 12
_____
1200 per year
x 10 years
_____
$12,000 dollars
+6000
______
$18,000 for a down payment

Paying off all credit cards. will leave me the ability to contribute 500 per month to the fund for lets say 5 years 30000+18000= 48000 we are half way there. Paying off the debt is a more effective use of my money.

Goals -

If When I become a project manager and increase my income to $70k per year (reasonable and do able) I will be able to put away another $ 30,000 in 4 years which is 80k so in 10 years if I pay off my debt and If I get my MBA Then I will have the 20% needed. Grrr I will be 51 before I take on a 30 year mortgage. Sigh. Well lets get started. today. I have got to do it. Losing my dream is not acceptable to me.

25% or less of your monthly take-home pay.

One of the best ways to accomplish something is to break it down into small, manageable parts. Complete these small parts and soon you'll have your goal accomplished. I need to do this for the PMP certification and for the MBA

http://digg.com/business_finance/WSJ_com_Five_Credit_Card_Traps_Everyone_Should_Know_About

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