Of course none of this is possible without money. That is unfortunately the way life is. Our long-term goal is to become financially independent. We don’t want to have to work to make money. We want to make our money work for us so that we can do the things we love. We believe this plan will help us achieve financial independence as well as having the lifestyle we want now – traveling and working remotely. So many things! It’s so exciting how many pieces come together and fit into this idea of ours!
Like I said in our first blog post about our goals, we know we need a large emergency fund as well as some extra cash for all the upfront purchases we’re expecting. We realize that we could just put all this money into investments or paying off our house, but according to our plan, we will be making more money than we would if we just saved our money and stayed in our house in Omaha.
Side note: We decided to stay in Omaha so that we could afford to travel while being near our families the rest of the year. If we have a budget and jobs that don’t allow us to travel, then we would be strapping ourselves in for 20 years of rice, beans, and a boring existence.
Now, how will we save up $12,000 in less than a year, and how are we doing?
We have really stepped up our frugality and budgeting game in the past few months. We have always spent less than we make. Lately, we just stopped spending money as much as possible. Eating out is a very rare occurrence. We try to go as long as we can without buying something we want. This helps us make sure we really should buy it. Spotify Premium… gone.
Our bank is amazing, by the way. It has completely changed our saving and budgeting world.
How are we doing? We had $2500 in a House Reserve Fund, and almost $5300 in our Get on the Road Fund as of February 7 (that was the last screen shot of our bank widget I took before…. well, I’m getting there, keep reading).
In the Get on the Road fund, it is a save-over-time savings goal. We told it we wanted $12,000 by October 1, 2017, and it calculated how much to automatically move into that goal every day. It was saving $35 a day. We were ahead of schedule because when we set it up, we didn’t start at zero, we moved in all of our emergency fund money that we had saved up. We left the additional $2500 in House Reserve Fund specifically for house expenses. Get on the Road is where any costs related to RVing would be taken from.
Which brings me to the reason why I said “had” a couple of paragraphs ago. Yes, we had $7800 in savings, and then we found a tow vehicle! We will go into more detail on the tow vehicle specifically in the tow vehicle goal blog post. We decided to pay cash for it, and when we sell our other two vehicles, it would bring us right back to where we left off in our savings.
Yes, it is unnerving and anxiety-inducing to be without that extra savings, but we hope to sell one of our vehicles in the next month. We plan on selling the second one closer to our departure date.
In case you’re wondering, the “Safe-to-Spend” is unallocated money as well as where the $35 is being pulled from. Anytime we put money into this account, it goes into our “Safe-to-Spend.” Also, this account is separate from our main spending account. We will give a breakdown of our budget from that account later.
We will definitely keep you updated with future blog posts as we go!
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John & Jennie
Written by Jennie