Thursday, June 13, 2013

Update - June 2013

Life is full of adjustments.  When driving from point A to point B, how many micro and macro adjustments do we make along the path toward our destination?  A dozen?  Hundreds?  Thousands?  Obviously, the longer the trip, the more adjustments we'll make.  Most are small variations to the steering wheel to keep us between the lines, while others are more major: avoid hitting the dog crossing the road and road construction detours are just a couple of the more common examples.

It's time to adjust the plan...

Last month we were unable to make any additional payments to principal due to medical expenses and higher taxes.  Do I regret those major detours?  Of course I'd prefer to have been able to add the $3,400 to our mortgage payoff plan, but I have to remember how fortunate we are to have been able to meet these unforeseen expenses head on.  We paid them off in one fell swoop.  No payment plans, no additional debt.  Gone! 

 We have not really had much of an eFund since our business income is very secure and our cash cushion was in the magnitude of thousands of additional dollars each month.  Additionally, aside from the rental real estate, we are debt free.  However, I now see the need to beef up our eFund.  Initially, by making the full 2013 ROTH contributions for my wife and I, and, secondly by saving some additional monies in a non-retirement eFund account.  Then, only after these goals have been met, will we accelerate our rental mortgage payoff.  Whew!  Those are some major adjustments to be sure.

June 1 Stats:

Jan 1, 2013                                   June, 2013                     Amount Paid Off

House #1 - $70,908               House #1 - $69,346                   $ 1,562
House #2 - $57,619               House #2 - $56,199                   $ 1,420
House #3 - $49,123               House #3 - $29,878                  $19,245
-----------------------------              ----------------------------          -----------------------
Total:        $177,650                     Total: $155,423                 $22,227 (-12.5%)

A couple of noteworthy points:  First, we broke the 30k mark on house #3.  We were able to prepay $2,000 for June.  That feels pretty good.  We are eager to pay that property off and add an additional $424.57 (Payment and Interest only) to our monthly rental income.  Second, we've paid off $22,227 since January of this year. 

The overall destination toward an accelerated payoff of our rental real estate has not changed; however, the route has been altered. 

What micro/macro adjustments have you made along the way toward financial independence or early retirement?  What decisions are you struggling with?  Feel free to share your journey.  I'd love to hear about it.

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