Bought a house!

On Monday, we bought a house.

This is, of course, a mixed blessing.  We now have a place where we can set down roots (both metaphorically and physically, since I intend to grow some of our own food here), and we now have a defined goal for paying off our living arrangements* and lowering our yearly expenditures.  However, we now have $316,000 more debt than we did last week, and, since this is an older house (that has been vacant for a few years now), we have a long list of projects to tackle.

I do look forward to slowly fixing this place up, though.  Well, slowly after the large renovation with which we’re starting.  We got a renovation loan on the house, which will allow us to create the spaces that we need to make the home functional for us, as well as replace everything that needs replacing (which is just about everything).  All of the major items in the home will be new:  appliances, roof, HVAC.  That should allow us to focus on the smaller projects that we want to accomplish.

We’ll also be adding a House budget to our budgeting, which will be used for maintenance and enhancements.  We’ve already dived in by painting an accent wall in our bedroom, making our mark on the house and also greatly improving the look.  We won’t be in the house for another month, so that’s the only small project we could start; we’ll be doing much more painting, as well as setting up a home gym, once we move in.

 

* We’ll still have property taxes and hazard insurance as yearly expenditures, of course.

December Stats

Today, I owe $23,930.73 on my student loans.  We’re currently making minimum payments ($180.74 pcm) because we’ve been saving for the house down payment and because we’ll need to pay our taxes, which will be very high in 2016 due to 2015’s capital gains for the house down payment.

On Monday, we will be taking up a very large chunk of debt when we sign the papers on our new house, so look forward to bigger numbers later.  The three debts above (student loans, taxes, and mortgage) are what stand between us and relatively small living expenses.

Starting the journey

For about a year, we’ve been examining and reevaluating our financial situation.  We close on our first house this month, just in time for me to turn 30 next month.  We’ll need to pay off capital gains taxes from the house purchase, my student loans, and the mortgage – and I declare before the ENTIRE WORLD (or at least you, dear reader) that we will be debt free by the time I turn 40.

I will post exact numbers closer to my birthday, but I hope you’ll join me as I chronicle our journey to debt freedom, financial independence, home ownership, and more.  Welcome, and happy holidays!