I have been avoiding looking at our finances lately, which is really not like me at all.  I’m usually quite anal about it.

I think it’s because I’ve been thinking a lot about what I want. What I want, lifestyle-wise for our family.  And what that means for our finances/budget and our current home and income.

In June and July we had no real savings after our spending spree on a new camera and swingset/fort.  Both of which we love and have not a single ounce of buyer’s remorse.  But, then Murphy came knocking and my husband fell from a ladder, so we’ve  also had the bills rolling in from that.   And, I went to get a simple oil change and was told I needed four new tires.  Great.  Oh well, we’ve not done anything to that car in ages, so it was due.

Always happens though.  You spend money on something you want, then something comes up where you have to spend money on something you don’t want to spend money on!

So, it’s back on the saving wagon for the rest of the year.  I’m already making lists for Christmas and on the lookout.  We will be gone most of December to Australia and will have to pack all of the gifts, so that will definitely test my strategic packing skills.

Our Home

On a very positive note, our mortgage just fell below $120,ooo with our July payment.  Seeing that made me really excited about paying it off.

So, we’ve decided to do two things starting in August.  One is to prepay our mortgage.  We are adding enough to pay it off in 15 years.  We may be able to add more in the future, depending on how this goes.

I often get a bee in my bonnet about looking for a new house that has a bit more room for us, though we really have enough room, I just want a 2nd bathroom.  Anyway, I LOVE our neighborhood and don’t want to leave it.  It’s a very liberal and arty neighborhood and the community is just unbelievable.  But, it’s become very popular since we moved here and the prices of homes has skyrocketed.  We could not afford our own house if we were looking right now.

So, I’ve decided to stop worrying over it.  Pay down the mortgage, enjoy the house and neighborhood and the yard I love working on.  If, in 5 years or so, the market turns around and we can make a mint off this house and move to one that needs some work and have no mortgage, then we will think about that then.

But, for now, I’ve found this great site, Young House Love, that has inspired me, once again, to dig around for my creative side and work on my house once again. I’ve going to hang some prints and photos that have been sitting around, repaint our living room and work on some blank canvas I have sitting in the basement.   Along with sell some things (cloth diapers anyone?) to make a little extra to buy some new things.

Our Rental Income

I’ve written before about how we rent our upstairs.  The same renter has lived there since before we even bough the house.

He has started doing a few things that are pushing my boundaries (after 5 years, it’s bound to happen),  so I am planning on giving it another year to see how things go and then decide if I want to keep going with it (LOVE that rental income) or start thinking about something else.  We can either renovate up there, increase the rent and get another renter.  Or, we can take over the space for ourselves.

So, I’ve created another savings account that I will be putting all of our rental income in.  This way, we can see how our savings does without that income.  We are planning on using it, not for our regular savings, but to take care of some repairs and updates that are desperately needed on the house (hello new back windows!).

So, that is our new plan.  I don’t know about you, but I have never been able to stick to the same plan for an entire year.   Too many things change during that time.

Have any of your financial goals changed or become more focused at the midway point for 2009?

Related posts:

1. Spending Less and Earning Extra

07/30/2009 | Goals, Money Management.

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