speeding tickets, and a tentative home savings plan…

I’m really ashamed to confess that I’ve apparently gotten two speed camera speeding tickets in the last month. So embarassing! What’s extra embarassing is that my car is still registered under the parents’ names in California, so the camera snaps a photo of the CA license plate and sends it to Mom & Pop Bacon. D’oh. I’ve had red light violations go to them too. (I swear I’m not a horrible driver! Just always in a hurry! Ok, I’ll be more careful!)

So the first one got sent to Mom right before I flew home. She called me about it, laughed, and said “I’ll just give it to you in person.” It was $40, not too bad, I guess. When I finally went to pay for it online today, they pulled up TWO speeding tickets under the license plate. NOOOOOOOOO! $80 down the drain! The second one is just 3 blocks from where I work…since when did they put speed cameras there?!

Anyway, in semi-related news (as I mentioned the parents above, and the potential for living with them to save money in my previous post), I’ve been trying to craft a plan for the House Fund. Inspired in part by Erika’s old post on her “five-step five-year buying a house plan,” I’ve come up with a 3-step plan for…well, actually, the next 3 years.

Step 1. Pay off the student loan with the higher interest rate. This should be done sometime around when we get married (end of next September), and leave me with just one student loan payment a month, which is $242, instead of a combined $558.

Step 2. For the next 6 months, send the extra money that would’ve been going to student loans ($1,800 to $2,000) into the House Fund. That’s $10,800 to $12,000! (I would still send the $242 minimum payment over to the last student loan, obviously.)

Step 3. Move back to CA, and save a whopping $4,500 to $5,000 per month for 10-12 months by living with the parents. That’s $45,000 to $60,000 more, for a grand total of $54,800 to $72,000!

Holy crap, that is much more than the $50k to $60k that I projected we would need for a 10% down payment and makes it seem like such a great deal. We really do pay a lot in housing! And we do have a pretty good combined household income, it’s just that I pay a bunch of it towards my loans and we don’t live like rich people.

Of course, the numbers are also assuming many big things…for example, that we both find jobs with similar salaries that we will get to start fairly immediately…hmm, yeah, big assumptions. But do-able. If anything, the first part of the House Fund (from the first six months of savings) may end up going to moving expenses or “emergency fund” expenses as we transition to our new living situation, and the non-employment gap that exists in that space.

But it’s all very tentative at this point. Heck, it’s also only a 2.5-year span at most, I imagine the time periods won’t be so exact, so giving us 3 years from now is a good start. What do you think?

Oh yeah, after the savings plan, there’s also:

Step 4. Buy a house.

Step 5. Pay off the rest of the student loans while living in said house, paying mortgage and not rent! 😀

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5 thoughts on “speeding tickets, and a tentative home savings plan…

  1. Oooh, going back to Cali, Cali, Cali… I forget, what part of Cali are you at again? How very cool! 🙂 That sounds like a great strategy, as well, for saving up for down payment (though would you get subject to PMI?). That’s a bummer about the speeding tickets – I thought for some reason they were doing away with the cameras, but perhaps it’s regional? Not sure.

    1. Um what’s a PMI?! I’m from the Bay Area. Go Giants! San Diego would be cool too…but way far from the parents! Who knew that one day I’d actually want to move home 🙂

  2. I love this plan!! I am laughing reading that 5-year plan I wrote in 2011, bc we’re coming up on 2015 next year! Crazy. Of course, our plan didn’t go according to the way I had envisioned bc we moved out of the love shack about 10 months sooner than we had originally hoped, but it was worth it for our sanity. We’ll also have to finance a car because we’re putting all our savings toward a house (we are also aiming for 10%).

    1. LOL, I hope I’m still blogging in 4 or 5 years here! It will be great to see how far we’ve come. Another reason I was stressing about the car so much…I kept saying “just give me 3-5 years! By then we’ll have a house and half or all the student loans paid off!!”

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