Changing my EF target

 It has occurred to me that I really want to get my emergency fund to $5000, so I have updated this goal on the sidebar. Damn, that $1000 goal is so last year! I’m high-kicking my way to $5000 now.

My current plan is to use tax returns and a child care government rebate to do this, though none of that money will arrive till the second half of the year. However, my weekly debt repayment of $320 remains focused on our car loan only, and nothing is going to get that out of my line of sight!

Some more good news: I have also figured out how to pay for our joint party without reducing our car loan repayments. I have arranged to work a second shift for the next 6 weeks. This is probably the only time of year when this will be manageable within my uni workload. This will help us save $1500 for the party outright, without touching my weekly car repayments. I had planned to stop car payments for 5 weeks to meet this goal, but now I won’t be doing this I can change my projected payoff date on the vehicle back to September (from October). I still have a way to go before I get it back to my original pay-off goal  of June, but I don’t regret my decision to try to spend a little cash each week on myself. This is the tortoise’s race, not the hare’s!

Still, I reached my baby EF goal, and now I want to take this savings thing further. I can not imagine having $5000 in the bank with no attached purpose – just `just in case’ money. But I also know that I am a bit up and down with my goals at the moment, and can’t seem to settle on a plan. At least I keep moving forward financially each month.

One thing I do know is that buying a home is way down the list at the moment. It just isn’t the right time in our market and I am no longer interested in rushing the decision to buy something I can’t really afford. Before we buy a home these are the criteria I now feel must be met, as far as I am concerned:

  • we need a dual incomes (or adequate income-producing assets to keep us comfortable with just one income … this is unlikely to happen anytime soon :))
  • $15,000 emergency fund in place
  • 10 per cent deposit (preferably 20%), plus all costs of buying covered
  • First Home Owners Grant ($7000) to cover our furniture needs. This will be the fun part! And we will need it as living with our relative has depleted our own household items.
  • I also want to live in a home that suits our environment, has nice outdoor spaces and is light and airy. It does not need to be (or look) expensive. But I won’t settle for something I don’t like. If we have to live in an ugly box, I’d prefer to wait longer.

 I have a few current concerns too, which I still haven’t worked out how to deal with:

  • I haven’t figured out what to do about my $3500 car bill. I fear that I will pay off the car hubby drives, only to turn around and need to finance one for me.
  • I haven’t factored in how we will pay for the clinical rotation of 8 weeks that I have to do in another town. Though my hubby will get holiday pay, I won’t be earning money for 8 weeks and I will also have to figure out an accommdation option for all of us that won’t break the bank!
  • Graduation – There will be a lot of costs associated with parties and functions when I graduate in December, nearly a month before I start earning a full-time wage.
  • Our planned trip to Melbourne in the second half of the year. It’s looking more and more unlikely, to be honest. But let’s see – I can work miracles, can’t I?

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