I love to forecast my budget. It gives me the opportunity to know exactly how much we can accomplish if we stick to our current budget.
Today I decided to forecast when we could foreseeably pay off all of our debt. Taking into consideration that we will almost definitely have to purchase a new vehicle in the next 12 months, I am guesstimating that we can be completely debt free by December of 2016. There a many variables which can change but this is based on the following factors:
- We receive no pay increases at our main jobs.
- DW and I discussed me quitting one of my side jobs in October which is an income loss of $590.00 a month. (This extra job is causing a ton of stress)
- We do not move. (we are debating either moving into my MIL’s house or finding another rental)
- Our new car costs no more than $15,000.00
- We have to dip into our emergency fund no more than $1,500.00
Things that may delay or move up this date:
- Possibility of having to replace two cars in the next 21 months
- We end up moving (moving costs between $2,000 - $6,000 dollars)
o If conditions are right it would be better for our family over all to move into my MIL’s house
o If the housing market gets better, our landlord may choose to sell the house and we will be forced to move (this has happened to us before)
- Major emergencies occur
- Family Vacation (we have been pushing back our family vacation for years and I am not sure if I can convince DW to hold back one more year)
- We get nice raises
- I continue with side job
- We win the lottery
Even if several of the negative events occur, I could still see us debt free by December 2017.
Since I am in a forecasting mood, here are the items I plan on saving for when we are debt free:
- Save more for retirement.
- Save to pay cash for next car
- Save for down payment on house
o If we move into MIL’s house save for repairs and remodels
- Save for vacations
o I am a first generation American on my mother’s side and all of my extended family is in France. My dream has been to take my kids over to visit them instead of them always having to come visit us.
o I also would like to be able to take my kids on vacation once a year. Have them experience all the world has to offer them.
What do you want to save for when you are debt free?
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