Dollars and cents behind the move

I have previously mentioned that we are moving. The driving force behind this was to be closer to my in-laws and along the way reduce our monthly expense. It would also be nice if we could walk away with some extra money to invest. Below is a quick break down of where I see us being in a couple of months.

Old House Numbers:

Market Value $305,000 – $310,000.

1,400 sqft, 3bed/3bath, .8 acres

Current Mortgage: $193,548

New house:

Market Value $320,000

2,400 sqft, 4bed/2.5bath, 1.6 acres

Current mortgage on new house: $244,000

Paid $300,600 (includes: Brand new patio set, New smart TV in living room, riding mower, full dining room set (we didn’t have a dining room in the current house), 1 year warranty, all new appliances with the house. The sellers just had the entire kitchen done over and all new hardwood put in the house, along with the entire interior being painted. The house is 100% move in ready. This is different from my current house, where I had to do all of the upgrades.

Down payment: ~$60,000 – sold stuff around the house and the remainder came from investments

The Numbers:

Bases on the numbers, I think we should be $95,000 -$100,000 positive when we sell the old house. This will allow us to recharge our investments by “paying” ourselves back the $60,000 we used for a down payment. Moving expense are estimated at $3,500. This includes a moving truck and a trip down with a vehicle. This leaves us with about $36,500 to….to what? So many things to do with the money, but we have already ear marked it for investments. We don’t plan to touch it.

How will this move impact our net worth? Bases on the above estimates,  the result is an additional $36,500 to invest, but we will be adding added ~$50,000 to the mortgage. This leaves us with a (-) $13,952 to the net worth, add in the addition (+) $19,400 house value will give us a positive net worth of $5,448 when it is all said and done. I will take it, we are gaining in house, land and house value, moving to a town were house values have been on the increase the last 3+ years and will be close to my wife’s family.

When the old house sells and the above numbers hold true, we should be on track to meet our 2017 goal net worth goal. This move will also help us reduce overall monthly expense and get us closer to this year’s goal of $600,000 and put us in a nice position for the start of next year.

A move is coming

I have to say I am not the best writer nor the most organized with getting my thoughts on virtual paper. I am sure this post will jump around a bit and with that here we go.

I mentioned in the May Net Worth post that we had bought another house and are planning a move. We are moving from New England to the great state of Georgia. Where do I start with this one? I was born and raised in the same area of New England for my entire life and my wife has lived here for about 15 years. This is a huge change for both of us. Trading in the cold weather gear, 4 seasons, and the snow (No more snow blowing!!) for warmer weather, longer swimming season and slower pace of life.

Over the last 10 years

Net Worth Update #2 – May ’17

Here we go with the second net worth monthly post. I had mention in the post about putting it all together that I had never tracked or officially calculated our net worth. I started back in April 2017 with the first Net Worth Update #1  and will continue to track and post monthly. May was an exciting month for us as we are buying a new house and it is only 1,100 miles away. This is why I haven’t posted in the last few weeks, I have been tied up with this new house thing. I will be posting about this new adventure and be asking a lot of questions along the way. Now, let’s get to this month’s numbers.

Net Worth Report #1- Baseline

This is my first net worth monthly post. I had mention in the post about putting it all together that I had never tracked or officially calculated our net worth. Well here it is Net Worth Update #1.

Net worth progress:

Total – Retirement $368,906 Total – Installment $0
Total – Liquid $24,928 Total – Transacting $3,973
Total – Investments $232,957 Total – Revolving $0
Total – Physical $92,002 Total – Physical $226,215
Total Assets $718,793 Total Debts $230,188
Net Worth Apr ’17 $488,604
      Monthly Change Start Date
      Change Since Apr $0

There we have it, a net worth of $488,604, almost half way to our goal of $1,000,000. I am excited to continue

Taking Lunch to Work

Anyone looking for an easy way to start saving for financial independence or early retirement? My current employer has a cafeteria on site, it makes it so convenient for everyone to buy lunch, but I think this is one of the biggest wastes of money. Ever since my first “real” summer job, I have been taking my lunch to work. I could never imagine buying lunch daily, but I see people do it every day.

I have never added up how much can be saved by bring lunch to work. Let’s give it a whirl. In my 15-year career, which would equate to roughly 3,375 working days, I can say I have bought a lunch around 30 times or .9% of the time.  

Putting it all together

I have been tracking our monthly bills and expenses since 2008, but it wasn’t until just a few years ago that I really took a hard look at our finances. We had debit like the majority of people do.  There was a mortgage ($1800), car payment ($315), truck payment ($450), undergraduate loan ($220), and a graduate loan ($270). This was over $3,000 a month is debt alone. If you add on top the monthly bills of cable, electric, cell phones, daycare, trash pickup, water, and insurances and so on you get another $1,400-$1,700 a month in bills. We still have to account for food, gas, beer, eating out and misc spending, yet another $1,400 a month. A total of $5,800+ a month!!! Wow! And I thought we were doing well. I was paying the credit cards monthly, was saving (401K), I was living the dream, just like everyone else. I was doing exactly what the world was telling us to do. 

Backyard Chickens

I forgot to mention in my about me page that we have chickens. We have had them for about 6 years now and currently have 5 Rhode Island reds. We lost one last fall from a predator attack. This is actually our 3rd set of chickens over the years. All of them have been lost to predator attacks, but lessons have been learned from each loss. The chicken coop has been modified over the years to help eliminate the chance of any additional attacks on the chickens.  I will write more about the coop setup in the future, but today I wanted to discuss the cost of store bought eggs verse our fresh eggs. If we eliminate the “startup” cost of the chickens, which would include purchasing them and building the coop, and focus on the straight cost of buying and feeding the chickens. Our “ladies”, as we like to call them, are giving us ~4 eggs a day, 28/week, 112/month or roughly 9 dozen a month. The cost to feed the ladies on a monthly basis in $12.50, which would equate to $.11/egg. Store bought eggs cost $1.69/dozen which comes out to $.14/egg. If you want to buy cage free eggs the price jumps up to $2.99/dozen or $.25/egg. Doing some quick math this comes out to a $40/year savings over store bought or $188/year savings verse buying cage free eggs. Not a huge savings, but there is nothing like fresh eggs. Plus, we have 5 beautiful chickens that give us some entertainment as well. Feel free to pass along any egg related recipes, we are always looking for new ways to cook eggs.

Here we go…

Yup, it’s happening. I’m entering the world of blogging about the trending topic of financial independence. Before I dive into all the details, let me tell you I have zero experience in the web, web page development or the blogging world. That said, I apologize now for the mistakes that I will be making along the way and thank you for the understanding and support as well. I also look forward to your help and suggestions.

I have been reading about FI and early retirement for years now. Having followed many of the sites listed in the Blogs I read page for years, I wanted to start sharing my experience and possibly help others along the way. We are not just beginning our journey; we are underway, but still have a way to go. That is where this site will come in to play. I will soon be posting where we are today, our plans moving forward and the path to get there. Thanks again for stopping by, welcoming us, and I look forward to sharing the journey.