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Why I DINK around...

DINK -- Dual Income, No Kids


This year has pretty much wiped out any thoughts of savings that Jen and I have had. At the beginning of the year, we had to replace the roof of our house due to the excessive damages caused by high winds. That was a $7,000 hit to the savings account. There was some silly event on May 6 and something that took two weeks to finish. That was a chunk of change. Meanwhile, we've been making payments to my parents for the 2001 Civic that we bought from them last year to the tune of $300 a month. There was also an extra payment made to them earlier this year...

Then came the landscaping, which was not cheap. Let me just simply say that I could purchase a really nice car for same price. Actually, it'd be a really nice car... Well, let's just total the money so far and say we're talking $40,000. No, I'm not kidding.

Mind you, I've been saving for years and years... Some of the money that was spent was being saved from the very day I bought the house. Why? Because being a homeowner means saving for the unexpected. And I might mention that I am *very* good a budgeting. =)

So part of my issue is with the house. When I purchased it, I wanted to have some money for doing things like putting in new carpeting. So I got a zero-down loan. The way those work is that the primary loan is for 97% of the mortgage, and the bank basically gives you a second mortgage for 3%. The second, of course, is at a much higher percentage rate but for a shorter period of time. So my primary was at 6.875% for 30 years, and the second was at 11.125% for 20 years. On top of all this, because I didn't have 20% equity already, I had to pay PMI, which is a money I'm throwing out the window...

So I'm refinancing the house, combining the mortgages and getting Jen on the bill for the house. Mortgage rates are down to 6.125% when I started the process. And assuming the house assessed for a decent increased value, then PMI comes off. I bought this house in February 2001 for $210. Based on what I have already paid towards the house, I need to get $265.25 to get PMI off. We just got the assessment the other day... $315. It's a frightening thing to realize that you could not purchase your own house now. It's also frightening to know that we're theoretically made $100 in 2.5 years.

Won't happen, since there is no way in Hades that we're selling this house, especially when we can't afford another house!

*re-reading this post* In no way do I mean this post as a brag, or a pity post, or anything other than informational This is stuph that is going on in my life right now, is relevant, and therefore post worthy. Sorry if it offends you. But then again, if you've been reading all of my journal of late, including backdated entries that don't show up on friends lists, you would know something about that...

Changing conversations slightly...

So last year at Christmas time, I had a talk with my nephew and brother-in-law. I mentioned that, if he kept his grades up and stayed out of trouble, my nephew could get my 94 Accord as a general reward for being a good kid. Now that'll be, at earliest, when he turns 15.5 years. His birthday was this past Friday, and I could have sworn he was going to be 14 years old, which gives me another year and half at minimum to finish paying off the Civic and start saving towards another car. Well... not so much. He actually turned 15 on Friday. eeps! So all savings just got escalated to paying off the Civic and saving for the replacement car so that Michael can get a car that was promised him. He deserves it.

Comments

( 9 comments — Leave a comment )
hmtriplecrown
Sep. 29th, 2003 10:19 pm (UTC)
Ouch.

At least Uncle Carl is going through with his promise. I really doubt you want the kid holding a grudge over a car for an extended period of time.
rialtus
Sep. 29th, 2003 10:31 pm (UTC)
Well, this kid has gone through enough in life courtesy of his mother. The least I can do is support him. I think he's going to have a free ride into college, since he's technically Hispanic. He has his father's name, which is Marez. He has great grades, plays basketball, is involved with ROTC ... like I say, free ride.
missingdonut
Sep. 29th, 2003 10:28 pm (UTC)
There is nothing wrong with the DINK lifestyle.

Call it an aspiration model for me, but simply stated, children are really expensive. A co-worker mentioned that she was required to purchase name-brand school supplies because the teacher/school board felt that if someone had generic markers, they'd have lowered self esteem.

Dead serious.
rialtus
Sep. 29th, 2003 10:38 pm (UTC)
Yipes! I never have understood the concept of kids having $100 Nikes, etc. But brand name markers ... that's utterly ridiculous. Well, unless it's Orange County. Let's just say that the attitudes displayed on the Fox show "The OC" are pretty trye.

(And Jen is from Orange County...) Sheesh!
missingdonut
Sep. 30th, 2003 08:37 am (UTC)
Well, in Sheboygan, we're talking about a city of about 50,000 residents with two co-superintendents. Not a lot of things make sense here.
2ndavemusic
Sep. 30th, 2003 07:36 am (UTC)
That teacher needs so badly to be slapped silly. And if it was in fact a board policy, let's leave Davis alone and recall those offices!
gaby723
Sep. 30th, 2003 08:13 pm (UTC)
Well shit. I'm a good kid. I've kept my grades up. I've stayed out of trouble. What do I get???
rialtus
Sep. 30th, 2003 10:05 pm (UTC)
You are a good kid, kept your grades up, and stayed out of trouble. But you ain't related to me, so you get a hearty atta girl.

Atta girl!

(Besides, you have a newish VW. What would you want with a 94 Accord?)
gaby723
Oct. 1st, 2003 03:51 am (UTC)
At this point in time I'd take almost any car as long as no payment was attached to it :/
( 9 comments — Leave a comment )