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About Me:

Monkey Mama

Just a 46-year-old mom of 2 in Northern California. My kids are Monkey Monkey(MM) and Drama Llama (DL). I am married to Monkey Hubby (MH).

We were a one-income family for 13 years. In late 2015 my spouse returned to work (minimum wage/part-time/seasonal). Something recent on his resume just buys us more options for the long run. The main benefit of this job is that he just works while the kids are in school. As always, we are saving 100% of his income.

{2023 Update: I expect that MH will retire from this job when kids are done with college and/or home is paid off. I think he likes the idea of finding more interesting or full-time work, with kids both adults now. But practically, might just stick out the *good* and very flexible job as long as possible. The very part-time job is allowing him to pursue his film passions. We are only about 5-ish years away from financial independence. Would be very different if we "needed" the money or he thought he might have decades of working years ahead of him.}

We saved a lot while we were very young and also moved to a lower cost-of-living area, to make life much simpler. We still live in California though (in one of the most expensive regions of the U.S.). *Simple* and *inexpensive* is relative.

Likewise, we have never had debt aside from our mortgage.** My blog is a testament to how much simpler life is without debt; how we have that much more money to both save and enjoy!

**Caveat: I have no problem whatsoever with credit cards paid off monthly, or low-risk credit arbitrage (for example, 0%-interest debt while earning 5% on FDIC-insured cash). These are the kinds of debt we have had. Just not interested in high-interest debt, using debt to buy beyond means, and not interested in the hassle that comes with loans and payments. With age and means, the latter (hassle) is our biggest debt avoidance motivation.

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2024 Goals

[ ]Small monthly Charitable Contribution
...($35 @ 1/31/24)
...Trying to be more mindful about how the little amounts add up and are helpful.
...This is not an all inclusive list of charitable giving but it is a new habit I want to add in addition to other donations of time, goods and money

[ ]Pay cash for college
...This is so much a given, to me. But I realize not everyone can read my mind, and so will memorialize in my goal list.
...#1 We don't do Debt
...#2 The student loan system is a scammy and corrupt mess.
...Seriously, wouldn't touch these student loan servicers with a ten foot pole.
MM YEAR 1 ✔
MM YEAR 2 ✔
MM YEAR 3 ✔
MM YEAR 4

DL YEAR 1 ✔
DL YEAR 2

[ ]$10,000 to savings
...($4,529 @ 3/31/24)
...$1,000/month, plus interest
...Topping off with snowballs

[ ]$7,500 to investments
...($1,750 @ 4/30/24)
...$350/month, plus snowflakes
(Snowflakes: credit card rewards and dividends)
...Topping off with snowballs

[ ]$2,025 to mortgage
...($0 @ 4/30/24)
...Topping off with snowballs and/or excess cash
...Keeps us on track with $10K principal paydown per year

[/]9% of household income to work retirement plans
...(9% @ 3/31/24)
...This is the minimum for the match; I'd otherwise rather fund IRAs.
...Note: Total retirement savings rate is 20% (with IRAs)

Goal savings rate = 25% of gross salary, plus funding IRAs from other sources.

[ ]$14,000 to IRAs 2024 (MAX)
...($0 @ 4/30/24)
...Will fund with MH's income
...Will not fund until the year is over. This is for tax and planning reasons. I won't know what mix of Traditional/ROTH IRA we literally can contribute until we do our 2024 taxes. In addition to that, can make a more informed decision based on our financial and tax situation for the entire year.

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**Long-Term Goals**

[X]$500,000 in retirement accounts by age 45.

Current big picture goal:

[ ]$1 Mil in retirement accounts by age 52.

Stretch Goal: Achieve by age 50

Have decided to pretty much stay the course. Keep saving 20%+ to retirement. This means taking 401K match & maxing out IRAs.

NOTE: WE HAVE NEVER CONTRIBUTED LESS THAN 10% TO RETIREMENT. NO EXCEPTIONS.

If we can't achieve at least 10%, then something else has to give. I share because it's infinitely easier to save for retirement if you start early. Let the investments do the hard work for you.

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Debt: $85,000 mortgage
{Home Purchase Price $290,000}

Ongoing goal is to *never borrow money again.*

Took on a $230k mortgage in 2001 and have not added to that.

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Net Worth: Increase net worth by $600,000 in the next 10 years. This is my "financial independence" goal.

2017: +$ 70,000 (partial year)
2018: +$ 51,000
2019: +$105,000
2020: +$104,000
2021: +$215,000
2022: <$ 65,000>
2022: +$ 85,000
TOTAL: +$565,000

This is in line with prior goal, saving 100% of our expenses every year.

{Our expenses are far more consistent than our income. Also, helps to prevent "living up to income."}

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My Pages

4% Locked

December 9th, 2011 at 07:51 pm

Does it sound too good to be true?

You betcha!

I'll get back to you in about 60 days.

I see no reason why we can't close a refinance in 60 days. But, from prior experience, and considering the insane rate of refinancing right now... All I Can do is not think about it or get too excited until it is official and those closing papers are signed.

But, a commitment has been made, and a huge leap towards 4% has been taken.

4%, 30 year mortgage. I can't even tell you how much this improves our long-term financial position. Will most likely pay it down as a 20-year-loan, by simply paying old payment which also very low to begin with, while still trying to scrounge about $4,000 per year in extra principal payments (outside of my own income). In the first year, we would knock out $10,000 in principal.

Anyway, I absolutely can not think about it until we sign the papers! It is too good to be true! (& yes, I Said the same thing last time - I think that one was almost more shocking, because we knocked our mortgage payment to the realm of the crappy studio apartment rentss I was looking at in the mid 1990s. I will never complain about paying $1100/month for this beautiful home, neighborhood, community. $900 is simply too unreal to imagine).

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What's funny is that last time we refied was the year my identity was stolen, and I was in the middle of some pretty serious 0% credit card arbitrage (more free money from credit cards). The refi was after the identity issues were cleaned up, but while I had several credit card balances (& tons of cash earning a high interest rate).

I've never opened up so many credit cards in my life, and here I am with another amazing refi opportunity.

Is the greater purpose of this blog simply to say, "I can do a lot of credit card deals without hurting my credit score!" ? IT feels like a theme. I know there are people out there thinking I am insane to do all these credit scores because it will ruin my FICO, and stuff like that. You can see why it doesn't worry me. Wink

Posted in Just Thinking, Home Ownership | 4 Comments »

4 Responses to “4% Locked”

Petunia 100 Says:
December 9th, 2011 at 09:08 pm 1323464899
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That's awesome! Congrats.
PauletteGoddard Says:
December 9th, 2011 at 11:38 pm 1323473907
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Congratulations! Past refinances, including this current one, give me an adrenaline rush in the anticipation period until signing, and when I feel I've got a "too good to be true" mortgage I am high for weeks. Is it that way for you too?
frugaltexan75 Says:
December 10th, 2011 at 01:28 am 1323480526
1323480526

Hope it goes well! $900/month is a great deal for your house!
MonkeyMama Says:
December 10th, 2011 at 03:17 am 1323487043
1323487043

"Is it that way for you too?" Oh yes!

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Monkey Mama*s Monkey Money Blog

Over Prepare, Then Go With The Flow

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