Layout:
Home > Another dumb accounting mistake in my big-picture planning -- huge, but good

Another dumb accounting mistake in my big-picture planning -- huge, but good

January 9th, 2013 at 11:07 pm

Guys, I'll be clearing up my faulty reasoning and math forever, it seems. These big-picture goals just had too many moving parts, and I was too hasty in setting down my amounts!

This one's in our favor, thank goodness.

When I figured how much we'd probably profit from the sale of the UK property, I figured in current mortgage figures at the time. That was months ago. Today, the mortgage balance is lower. In four years, it will be lower still. That means if we're planning to sell in four years, I should use the estimated balance by then.

I'm not using a sophisticated worksheet, just using the current amount that goes toward principal and multiplying by 47 more months. So this is hopefully a conservative estimate, and the amount to principal will actually be a bit more by the end of the four years.

So, what does that take us to? We'd need to save $56,000 to be at the same place I want us to be in four years. Not $71,000. Hooray for shaving $15K off our total goals!

Thank goodness. That seems a LOT more doable. That means we need $106,957 total, or $2229 per month. Just a $363 monthly shortfall to make up, then. ACRES better than $675.

I hope I don't discover any more major holes in my logic. But if I do, I hope they go in our favor in a big way, like this one!

AS is going to be happy about this, because she's feeling the strain to come up with the extra with her freelance money. This seems more doable just by cutting the travel budget a bit starting in June!

7 Responses to “Another dumb accounting mistake in my big-picture planning -- huge, but good”

  1. mamasita Says:
    1357773916

    That's a nice surprise! Is the plan to sell your current UK house and purchase another when you move there?

  2. ceejay74 Says:
    1357774569

    mamasita, yes, that's our hope. We eventually want to move to UK or, if we can't figure out a way to get all of us there permanently, to buy a bigger place here in Minneapolis and settle down. The home we own in the UK is a tiny one-bedroom, so it would be nigh impossible for three adults and two growing girls to live there!

    We figure four years will give us time to save up, for NT to finish school, for AS to develop her professional reputation, and for our U.S. home's value to recover somewhat. Our rough plan is to re-evaluate at the end of four years. If it seems there is no clear path to permanent UK residence at that point, we'll go for option B, which is to settle here. We'll still probably sell the UK place at that point and use the proceeds to help with a down payment.

    The savings goal is to hopefully cover the more expensive option, moving to the UK. I've tried to account for moving costs, staging the U.S. condo for sale, lawyer fees, temporary housing and loss of income.

  3. creditcardfree Says:
    1357776790

    I can understand why not all the figures are clear...sounds like you have this one more clear and that is great!!

  4. twest Says:
    1357778833

    I am glad to know I am not the only one that would make mistakes like that. LOL At least it was in your favor. That is a good thing.

    I have a feeling you guys will have the money before 4 years anyway. You seem to be really conscious of your spending and saving. I plan to be cheering you on for the next few years!

  5. North Georgia Gal Says:
    1357786324

    Glad it was in your favor! Surprises liKe that are nice!

  6. mjrube94 Says:
    1357790618

    At least this was in your favor! I agree...$363 is MUCH better than $675!

  7. FrugalTexan75 Says:
    1357791197

    Mistakes like that are happy ones to find. Smile

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]