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Getting a Roommate!

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We are getting a roommate!  It’s just a temporary situation as one of our friends’ friends is moving to Austin next month.  Emily’s been bugging me to rent out our extra bedroom for a while.  Our house floorplan is ideal since the extra bedroom is directly inside the front door and has an attached bathroom.  But I have been resisting.  We had roommates once before and it was pretty tough.  Also, I want our extra bedroom to be available for people who come visit us since we live so far away from many of our family and friends.  But alas, this hasn’t exactly been the Field of Dreams…”if you have an extra bedroom, they will come,” hasn’t really been the case for us.  It’s been empty since we moved in.

The roommate (Emily has met her, but I haven’t yet) will be moving in during the middle of December and rent until the end of January.  And wouldn’t you know it, as soon as we committed to this, Emily has a friend coming to visit, and her parents also planned to stay with us over Christmas.  So we are going to have a full house in December!

I’m glad we can help somebody moving to Austin get on their feet.  I expect that they will pay some rent but not a lot.  Hopefully we can apply whatever rent they pay to the Race to $15k fund.  And it will be a good test to see if we could handle having a roommate on a permanent basis.

Going For It!

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After talking it over, Emily and I (together) decided to go for it!  We are going to try to pay off our debt in 2 years.  Here is the plan.

Monthly
Monthly payment snowball: $2386
Debt sinking fund: $1200
Total: $3586

We liked the idea of the debt sinking fund because we will have access to the cash while we save it.  It will cost us a little extra in interest, but it will provide us a little emergency fund boost and peace of mind.  I’m not sure when we will make payments out of this fund.  Perhaps once every 3 or 6 months. I have set up direct deposit to put $600 in the debt fund twice a month.

In addition, we will need to come up with another $15000 over the course of the 2 years to stay on schedule. So I’m calling this the Race to $15k.  We will sock away whatever money we can find to get past this hurdle as fast as we can.  Right now the balance is $0.  Hopefully we can get a boost by saving some money from our budget periodically. But I expect that this account will be funded by tax returns and bonus checks.

Balances
Emergency Fund: $5000
Debt Sinking Fund: $600
Race to $15k: $0

The expected payoff is December 31, 2015.  25 months from now.  

The race is on! Wish us luck!!