I will explain, incase a new reader is reading or if maybe you look at my sidebar and think to yourself "What is that girl doing?"
I have an Emergency Fund BUT I break it down into three catergories. If an Emergency happened I feel it super important to have money put away to pay my mortgage, pay my property taxes and house insurance (not included in mortgage) and of course thirdly misc expenses such as food and utilities; that third category I generically call my Emergency Fund, but I should really rename it the Utilities Emergency Fund since that is what it mainly is.
I am saving for 12 months of Housing Payments, I am also saving for 12 months of Escrow (property taxes and house insurance). The third category I would also like 12 months BUT with the first 2 covered I figure in an emergency the Utilities Emergency Fund would go much farther because I might not have to actually dip into it.
Anyway, I was online and trying to figure when I would meet my goals. If I make NO changes the Escrow fund will be finished Sept 18th which means prior to my deployment AND it would free up $250 per month from the second paycheck of the month. Of course I would LOVE to have this finished earlier, who wouldn't But before my deployment is my goal so I am going to try to just mentally call it good and sometime I need to go into my autodraft and set it to stop automatically pulling extra on the Oct pull.
The problem is my Mortgage Fund, I am currently applying about $93 extra each month when you figure the extra I am applying plus the interest it earns. At this rate it will take 48 Months if I make NO changes. This stresses me out because I want it funded at the 12 month level prior to the End of Sept. I need 4375.17 more after my interest is added tomorrow and the extra from the 4th of April is applied.
Finally I have the Utilities Fund which I already said I think will be dipped into less if the other two are fully funded. It has NO extra going into it currently. This fund has $4501.66 in it.
I am really tempted to transfer the $4375.17 I need to fully fund the House Fund out of the Utilites fund. This would free up $90 from the paycheck on the first. Then I could just apply the $90 to the Utilities Fund.
The low low balance in the Utilities fund would bother me a bit, BUT I think in a good way. Having one goal to focus on instead of three would make me get creative to fund it.
What to do?
So Tempted to Move the Emergency Fund to the House Fund
March 31st, 2011 at 02:04 pm
March 31st, 2011 at 05:42 pm 1301593333
Like, one time I was obsessing over how the exchange rate had changed and wanting to see how that changed my UK savings and debt, but not wanting to change my spreadsheets because that would mess up the charting of my progress on my journey. Finally an SA blogger wrote something like, "Just go figure it out once, so you know, and then you can forget about it and go back to your regular spreadsheets!" So I did, and voila, I stopped obsessing over something that wasn't going to change my actual money situation.
April 1st, 2011 at 06:19 pm 1301681984
Yeah that is what I was doing, obsessing over something that was not going to actually change how much money I actually had in the bank.