Just found the site and thought I would share some of the changes we have made over the last year to right size our lives and step off the wheel of excess. End goal is to retire early, travel and changes were necessary to accomplish this not to mention it is just plain stupid to waste money the way we were.
Start of 2016
Debts
Mortgage $360,000 30Y 3.275% 2044 pay off date
Car loan $20,500
Credit card $15,875 ($711 in interest paid in 2015)
Tractor loan $5,000 0% interest
Bills 2015 - mid 2016
Water between $55 (winter) $450 (summer)
Gas / electric $250 average per month (elec high in summer gas hig in winter)
Cable, internet and security system $257
Rhapsody $14.00 per month
Gym Membership $127
Mortgage Payment $2435 Insurance ~$2500 and Taxes ~$4800 per year included in Mortgage
HOA $800 year
We were living a very very wasteful life 2 people living in a 4800 square ft house on 2 acres in the country.
Fully landscaped 1.5 acres of grass that needed to be watered, mowed (of course with a fancy john deere tractor) 100+ rose bushes.
Every spare min was spent maintaining the house / property or working to pay for it. We stopped riding our bikes and of course packed on extra pounds to go with our new lifestyle.
Sold house $575,000
Sold Tractor $4500
Sold a bunch of other stuff ~$3500
Moved to new area of town that we like better and purchased a townhouse (1700 sq ft 2 bedroom 2.5 bath) that is closer to my wife's work, has Mt Biking trails right outside our door, less than a mile or two from everything we need, includes all exterior maintenance, pool, multiple hot tub's, multiple gym's and it has nicer finishes than our house we sold.
Purchased townhouse $360,000 15Y 2.78% 2031 payoff date ($175K down reduction in mortgage of $175K 13 year reduction)
Mortgage payment $1430 ($1005 reduction per month) Insurance and taxes included
Water $40 - 45 per month ($15 - $405 reduction per month!)
Gas / Electric $105 average per month ($145 reduction per month AVG)
Cable / Internet $105 (reduction of 152 per month) I know I know this is a bunch but we need internet access for work and are addicted to a few shows baby steps I guess :(
Gym Membership GONE ($127 reduction per month)
HOA $162 per month (includes external bldg maintenance / insurance and Gym, pool and other amenities
Canceled Rhapsody membership using Amazon music we already get with our prime membership
Status 10/2016
Mortgage $173,440
Credit card $9326
Car loan $15,593 (Looking to sell it or find a side hustle to pay for it)
Goals over the next year
Reduce spending
Live off wife's income only and save / invest 100% of my income
Pay off credit cards ASAP (paid 0 interest so far since changes)
take action on car
Max out both of our 401k's to reduce tax liability
Max out IRA's need to figure out what our options are
Find other ways to reduce tax liability
Increase savings
Started using Mint to better understand where our money is being spent allowing for further optimization
Find a financial planner, CPA and or mentor to help me get started on the right path not really sure what one / combination would be best I am in Louisville Colorado area
This year has been a year of major changes!
I am happy to have found this site and hopefully I can do as well at getting things in line as most of you have... Truly impressed with your skills