In the last case study
http://www.mrmoneymustache.com/2016/09/12/reader-case-study-young-man-saved-from-jeep-suicide/ MMM considered some debt repayments "savings" since presumably the debt payments would go into savings once paid off. What are the thoughts on other payments that count as "Savings"? For example I have 3 debts:
$5k to parents (0% interest, $250/month)
$8k for car (1.85% interest, $414/month)
$268k mortgage on $285k house (3.65% interest, $2000/month - $800 interest, $600 insurance/tax, $500 principal, $100 PMI). The house is probably worth a bit more now as the market I'm in is in high demand.
Additionally I am putting aside $250 in a betterment account for house related expenditures like a new roof or water heater (50/50 stock bond). Is this "saving" when it is the approximate cost of maintaining the house?
I'm thinking of contributing in a college 529 plan for my kids. This occupies an interesting space as not FI money, but still "savings" in my book.
The money I'm putting toward the small debts I consider "saving" since they'll be paid off in ~20 months freeing up that cash flow.
The PMI can be eliminated by making extra mortgage payments. Would that be "saving"? Personally I'm calculating it like an investment. It would take 40k-45k to eliminate the PMI for a return of 1.2k per year. So approximately a 3% rate of return plus 3.65% in saved interest payments.
Does the principal payments against my mortgage count as "saving" or just the cost of my choices (not saving and paying in full for a house)?
Other thoughts welcome.