Since we're over with the credit card and home equity line of credit debt and only have another month's worth of misc medical bills, I'm looking at the next phase of our financial journey. Previously I had thought about holding off any projects on the house so that we could have the money to invest in a business, but after making some improvements on our house, I want to continue doing so. Here is the summary of what I'm looking at us reaching in the coming 18 months:
$6K Emergency Fund
$15K Home Improvements
$9K Mortgage Reduction
$2K SIMPLE IRA
$3K Pay My Dad Back
With how slow work has been recently, we are going to need the emergency fund. If we can get the house full of roommates soon and I was laid off, we could live off the $6K for 6 months with me not working any of that time. I would though find another job that pays minimal while I looked for work, as well as I would hope I would get unemployment.
The home improvement list is pretty huge, but my hope is that we spend the money and it will either convince us to stay here longer or will help when we try to sell the house. The projects include hardwood flooring in 3 rooms on the first floor, tiles in our kitchen, replace the tub in 1 of our bathrooms, replace the driveway, repair the fences, replace exterior doors, install an AC unit, replace our dishwasher, and removing the drop-ceilings in our living & dining rooms.
The mortgage reduction is so that we can stop paying $70 in PMI a month. When we bought our house we put 5% down due to that is what we could afford at the time. Once we get the mortgage down to the 80% LTV level, we won't be paying it down more except through our normal monthly payments.
The $2K is going towards the medical debts we have outstanding. They haven't been calling or writing us, but I consider them our responsibility to pay. We're not going to rush to pay them though, since I would rather have some money in our emergency fund instead.
The $2K in the SIMPLE IRA will be done through normal additions from my paycheck. We won't be adding more than the 3% in order to get the potential matching.
The $3K of my father's is a story I don't want to discuss much, but he has asked us to keep the money for him until May. We'll have the money ready for him then.
Overall it comes out to about $2K/month, which is feasible if we get some roommates in the house and I hopefully get a raise in the coming 18 months. Our priority will be paying back my dad, emergency fund, and home improvements. Once the emergency fund is built up, we'll work on the debts and the mortgage payback.