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!
Another dumb accounting mistake in my big-picture planning -- huge, but good
January 9th, 2013 at 11:07 pm
January 9th, 2013 at 11:25 pm 1357773916
January 9th, 2013 at 11:36 pm 1357774569
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.
January 10th, 2013 at 12:13 am 1357776790
January 10th, 2013 at 12:47 am 1357778833
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!
January 10th, 2013 at 02:52 am 1357786324
January 10th, 2013 at 04:03 am 1357790618
January 10th, 2013 at 04:13 am 1357791197