The house fund... is back!

Back in October, Jordan and I put our house fund on hold.  We had just gotten notice that all of our roommates would be moving out - and weren't sure if we'd be able to handle the rent on our own (It was $1,500 back then).  Since then, we successfully negotiated a rent decrease to $1,350 and went from having three roommates to just one.  Our rent effectively went from $300/month to $425/month.

Even with an increase to our monthly expenses, I'm pleased to report that both Jordan and I have set up our bi-weekly automatic transfers into the house fund.  We will each contribute $150/bi-weekly on opposite weeks.  So each month, the fund will get $600/month, except for four months out of the year where it will get $750 (thanks to our 'extra' pay days).  It's pretty powerful, saving for a joint goal this way, the savings increase very quickly - and thus we are encouraged to continue to save.  

I'm sure a few folks remember that we also took a loan from ourselves to the tune of $750/each (so $1,500 total) to purchase some much needed household items.  We are still planning on depositing any tax returns we get to the fund to top it back up.

That said - would you folks out there suggest we stay that course, or take any tax refund we get and pay down debt (Jordan the truck loan and me a student loan)?


  1. I would personally use the refund to pay down the debt first as you're already making contributions to the house fund. And when the debts are gone it would be easier to pay back the house fund. Just my opinion though!

    Congrats on working it back into your budgets though!

  2. I would also pay down the debt - as long as you have a sufficient emergency fund :)

  3. I agree with Kim, I would use the refund to pay the debt down. Interest that you have to pay on your debt will be far greater than interest you get putting the money in a savings account. You're also already putting a good sum in your house fund every month. Great job working it back into your budget.

  4. I , too, vote to pay down other debts with tax refunds. Once you don't have those payments, you can step up your savings so dramatically, just like you did when you paid off your CC

  5. I vote for paying down the debt as well. Nothing feels better than getting the debt monkey off your back! ;)

  6. Pay down the debt! It's always good to have a "house" fund or "emergency" fund, but if you're already making contributions, I'd take any tax-refunds and pay down debt.


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