Great article by author Michael Lewis of The Blind Side fame regarding the perils of expensive housing. Even a very rich man like Michael Lewis couldn't keep up with renting a landmark mansion in his home town. Mr. Lewis' fun essay also documents the hidden costs of utilities, maintenance and furnishings for a much larger house.
I'm in a phase right now where many of my friends are selling their first or second home and upgrading into McMansion world. It is somewhat surreal for my husband and I to visit our friends/peers who have moved from reasonable rancher to gated community McMansion. Some of them bought during Florida's real estate bubble deflation so they got good deals, but it is still a whole different world. One of my friends, who moved into McMansion world in the last couple of years mentioned that she felt like she had to buy (or lease) a new car to keep up with her new neighbors.
My friends' homes are beautiful and sometimes its hard not to think envious thoughts about those new chef kitchens and especially the walk in closets. But, I have no desire to take on that kind of debt. I did have a refreshing conversation with a college friend recently and she is just a couple of years away from paying off her home in full. Great motivation for me as not having a home mortgage is a goal that is always in the back of my mind.
Showing posts with label Layoff Budget. Show all posts
Showing posts with label Layoff Budget. Show all posts
Thursday, June 5, 2014
Tuesday, August 20, 2013
Unemployment Compensation - Follow Up # 2
Earlier I posted regarding Mr. Sam's Florida unemployment compensation adventures, and the fact that his application was denied because he received severance. Well, now Florida has changed their minds and determined that he is entitled to benefits because he is not receiving ongoing severance.
As a result, yesterday he received a payment representing two weeks of benefits ($550). Somehow I expect the State to change its mind and ask for the money back so we will be prepared to repay it.
As a result, yesterday he received a payment representing two weeks of benefits ($550). Somehow I expect the State to change its mind and ask for the money back so we will be prepared to repay it.
Wednesday, July 31, 2013
2013 Savings Goals - August Update
(1) Max out 401k(s) - $22,285 (64%) (goal is $35,000)
(2) Max out IRA(s) - $9,020 (82%) (goal is $11,000)
(3) Add to e/r fund - $6,000 (60%) (goal is $10,000)
(4) Pay down mortgage - $2,075 (42%) (goal is $5,000)
(5) Trading account fund - $50 (1%) (goal is $5,000)
(6) House projects - $1,500 (50%) (goal is $3,000)
Total: $40,930 (59%)
We are about $300 behind on our 2013 goals. And with Mr. Sam's lay off I expect that number to grow. In July, I kind of kept up with most of our goals in that I continued to fund 2, 3, and 6. But, all that money is sitting in my Capital One 360 (formerly know as ING) savings accounts, so I know that I can access that money if we need it. I didn't put the $415 towards paying down our mortgage in July, since I'd rather have liquid assets available.
As for our 401ks, Mr. Sam can no longer contribute to his 401k this year, but with his match he has saved $15,676 for 2013. While we don't normally count the match towards our savings goals, he is happy that he's not too far off our goal of maxing out his 401k. In fact, with his match he is only short $1,824.
I would like to continue to fund my 401k during the lay off, although we've talked about whether it makes sense to scale back. Frankly, I almost think it is more important to save towards our future during this time. I still need to crunch the numbers and see if it is feasible. And while I keep our 2013 IRAs money liquid, I'd like to be putting that into our IRA if we can (and we have until April 2014 to decide).
(2) Max out IRA(s) - $9,020 (82%) (goal is $11,000)
(3) Add to e/r fund - $6,000 (60%) (goal is $10,000)
(4) Pay down mortgage - $2,075 (42%) (goal is $5,000)
(5) Trading account fund - $50 (1%) (goal is $5,000)
(6) House projects - $1,500 (50%) (goal is $3,000)
Total: $40,930 (59%)
We are about $300 behind on our 2013 goals. And with Mr. Sam's lay off I expect that number to grow. In July, I kind of kept up with most of our goals in that I continued to fund 2, 3, and 6. But, all that money is sitting in my Capital One 360 (formerly know as ING) savings accounts, so I know that I can access that money if we need it. I didn't put the $415 towards paying down our mortgage in July, since I'd rather have liquid assets available.
As for our 401ks, Mr. Sam can no longer contribute to his 401k this year, but with his match he has saved $15,676 for 2013. While we don't normally count the match towards our savings goals, he is happy that he's not too far off our goal of maxing out his 401k. In fact, with his match he is only short $1,824.
I would like to continue to fund my 401k during the lay off, although we've talked about whether it makes sense to scale back. Frankly, I almost think it is more important to save towards our future during this time. I still need to crunch the numbers and see if it is feasible. And while I keep our 2013 IRAs money liquid, I'd like to be putting that into our IRA if we can (and we have until April 2014 to decide).
Wednesday, July 17, 2013
Good News
Can there be any good news when it comes to a layoff? I really don't know, but I do choose to see some positives.
First, Mr. Sam gets a decent number of weeks of severance. We have not figured out our "lay off budget" yet but my tentative plan is to try and save the vast majority of that money.
Second, Mr. Sam' health benefits, which are good, generous and cheap, continue well into the fall. I am also covered by his health benefits due to the good, generous and cheap nature of them. We do have to pay the biweekly amount (the amount that was deducted from his pay for his portion) to maintain these benefits but it makes economical sense to do so since my benefits are good but cost 4 times (or more, still figuring this out) as much as his.
Third, we have a decent amount in our emergency fund. This money was bookmarked for other purposes but it is there.
Fourth, Mr. Sam started preparing for this lay off last year by taking some certification courses so he has some additional skills and certifications to add to his resume.
Fifth, I have a good job. Frankly, this is the most important item on this list. I have a good, professional job for which I am fairly compensated. While we have not figured out our "lay off budget", will work on that this weekend, I'm generally confident (since I am well versed in our monthly income and expenses) that my salary can cover our fixed and basic monthly expenses. I also have opportunities for bonus monies and we need to think about whether I should up my output to make sure I am eligible for same (and at what level).
First, Mr. Sam gets a decent number of weeks of severance. We have not figured out our "lay off budget" yet but my tentative plan is to try and save the vast majority of that money.
Second, Mr. Sam' health benefits, which are good, generous and cheap, continue well into the fall. I am also covered by his health benefits due to the good, generous and cheap nature of them. We do have to pay the biweekly amount (the amount that was deducted from his pay for his portion) to maintain these benefits but it makes economical sense to do so since my benefits are good but cost 4 times (or more, still figuring this out) as much as his.
Third, we have a decent amount in our emergency fund. This money was bookmarked for other purposes but it is there.
Fourth, Mr. Sam started preparing for this lay off last year by taking some certification courses so he has some additional skills and certifications to add to his resume.
Fifth, I have a good job. Frankly, this is the most important item on this list. I have a good, professional job for which I am fairly compensated. While we have not figured out our "lay off budget", will work on that this weekend, I'm generally confident (since I am well versed in our monthly income and expenses) that my salary can cover our fixed and basic monthly expenses. I also have opportunities for bonus monies and we need to think about whether I should up my output to make sure I am eligible for same (and at what level).
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