Status of my Refinance
So the refinance I mentioned last month is going well. We’re close to closing. My house appraised for $32k more than I bought it for 3 years ago so that’s a huge plus. I’m paying a little extra up front to bring it down to 3.25% (thanks Brexit!).
Remember, that this refinance will give me about $52k more during my 13 year goal to invest! The house will also be fully paid off at the end of the 13 years so if I do choose to retire elsewhere (likely), I’ll have a hefty down payment for a nicer early retirement upgrade.
New Savings Found
Well it’s not much, but I was looking at my cell phone bill.
Right now, the plan I have is $70 a month, I also get a corporate discount on the plan through work.
The plan is unlimited everything. I really don’t want to be bound by minutes or text limits, but I was particularly interested in my data usage the last few months.
Even on a couple recent business trips where WiFi wasn’t always available I used at maximum 200MB of data.
Well low and behold, my base plan is $50 and the unlimited data was an extra $20, which is making the bill $70. The base plan already includes 2 GB of data. Since I only use 200MB on average I saw no reason I would ever get close to the 2GB unless I was using the phone’s hotspot feature constantly.
So I yanked the unlimited data off the bill
$20 a month = $240
$240 a year for 13 years = $3120
$3,120 in savings!!!
Results after 2 months of FIRE tactics
So in just 2 months I’ve made 3 easy changes that will save me the following amounts for the next 13 years:
- Cable – $19,812
- Refinance – $51636
- Cell phone – $3120
TOTAL: $74,568 in savings!!!
Now let’s say I invest that money each year for 13 years and get a 6% or 7% return:
$5736 a year for 13 years at 6% = ~ $120,000
$5736 a year for 13 years at 7% = ~ $128,000
(assumes a 3% inflation rate and 15% tax rate)
That alone gives 2-3 more years of worry free retirement!