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We've sold our house this weekend. 
As such, the money from the sale will go to pay off all debts. This includes the mortgage, the renovation debt and our Best Buy card. In other words, we're wiping out every single cent of debt before venturing into the new house. We're about $127k in debt right now with everything put together. That figure also includes the realtor costs, the lawyor fee, etc.
We'll have about $73k left over, but some of that will go to paying on application fees (CMHC charges about $165 for an application fee for a new mortgage) and any lawyer fees associated with the purchase of the new home. Since DH's work will cover the cost of moving, we'll have about $70k on the low end to use for the next home.
2011 will be a new start for us. With all of the debt wiped out, we'll be starting to put away for both a $1k baby EF and also our slush fund. The slush fund will cover all birthday present costs, school fees, holidays, etc. I usually devote about $100 per month into that fund. Another $400 a month will go into a split savings account that allows for both retirement and secondary education funding. We promised ourselves that by the time DS7 turned 8, we would start. We're getting a nine month head start on this. The baby EF will cover items that need fixing around the new house, but will not cover the purchase of new furniture and such. That money will come from our tax return.
But also with the new home comes new mortgage payments and new property tax amounts. We're prepared to go as much as 31% of our net monthly pay to fund it and that amount is about $969. We're comfortable with this. We've combed the budget and have found all of the holes that were sucking money out of us before.
So here's to 2011 and a new adventure into the next chapter of our lives!
As such, the money from the sale will go to pay off all debts. This includes the mortgage, the renovation debt and our Best Buy card. In other words, we're wiping out every single cent of debt before venturing into the new house. We're about $127k in debt right now with everything put together. That figure also includes the realtor costs, the lawyor fee, etc.
We'll have about $73k left over, but some of that will go to paying on application fees (CMHC charges about $165 for an application fee for a new mortgage) and any lawyer fees associated with the purchase of the new home. Since DH's work will cover the cost of moving, we'll have about $70k on the low end to use for the next home.
2011 will be a new start for us. With all of the debt wiped out, we'll be starting to put away for both a $1k baby EF and also our slush fund. The slush fund will cover all birthday present costs, school fees, holidays, etc. I usually devote about $100 per month into that fund. Another $400 a month will go into a split savings account that allows for both retirement and secondary education funding. We promised ourselves that by the time DS7 turned 8, we would start. We're getting a nine month head start on this. The baby EF will cover items that need fixing around the new house, but will not cover the purchase of new furniture and such. That money will come from our tax return.
But also with the new home comes new mortgage payments and new property tax amounts. We're prepared to go as much as 31% of our net monthly pay to fund it and that amount is about $969. We're comfortable with this. We've combed the budget and have found all of the holes that were sucking money out of us before.
So here's to 2011 and a new adventure into the next chapter of our lives!
