Last month (May):
Years left: 9
P = $787.09, I =$427.32, Escrow = 621.66
This month (June):
Years left: 8.833333333
P = $792.41, I =$421.99, Escrow = 621.66
One month’s savings from prepayment: $2.62
Whew. We have 3 months money in savings plus 2 months emergency fund plus school tuition. Disaster (in which we would have to live off our pantry without fancy cheese supplements) averted.
Saving was harder this year because we had to do it all nine paid months instead of just the second half of the year. Putting extra money in the 457 retirement plan meant that DH’s take-home pay was cut dramatically. So no big mortgage prepayments during the first half of the school year.
I always freak out a little bit with regards to the summer money. It’s hard not getting paid for three months! This is our last paycheck for the academic year and we won’t get paid again until October. The paychecks are smaller too because they take all the money for benefits and things like parking out of our last paycheck.
I mentally pretend the June paycheck isn’t coming. That the May one is the last for the year. That means June 1st (really May 31st because of direct deposit) is a pleasant surprise and it turns out that we will really still have an emergency fund come September, even if an emergency happens.
Do you ever pretend to yourself that incoming paychecks aren’t really coming? If you’re on a 9 month contract, how do you handle the summer?