A personal fiscal cliff deal
Last year our family did some basic periodic budget re-evaluation and set some financial goals that we thought were prudent given the shakiness of the economy.
Here’s a few of our 2012 personal finance resolutions and how we avoided our own ‘fiscal cliff’:
- Kill the credit cards.
- Lower our dining out expenses
- Refinance our mortgage
- Save for travel a little bit at a time
We trounced this goal wittling down to one card that I have to have open for business expenses. Its important to note we didn’t close the other lines we have open because that can be damaging to your score but they are no longer accessible for easy use.
We did OK with this goal. Not as good as we’d hoped but not too bad. Complicating things a bit was the birth of our new son. Adding an infant to the house is probably the exact wrong time to try to eliminate the convenience (and lets face it, indulgence) of things like take out sushi.
I am happy to say that *fingers crossed* this one will finally get closed this month. We have been jumping through some hoops to try to get a HARP refinance completed but it looks like we are finally there. This was a big one because we are taking 8 years off our mortgage AND lowering our payment a teensy bit. HARP is a great program if you are current on payments but are stuck in a higher interest rate. Basically if you did the right things and still are but you took a pretty big equity hit HARP may be an opportunity for some savings (for those with Fannie/Freddie loans)
I wish I could say that it was me traveling but alas our goal was actually to save enough to send my oldest son on his international club trip. This one, we accomplished! I didn’t know if we could but somehow every month we figured out how to save enough from elsewhere to make that trip payment. One day maybe he will appreciate it…Nah!
What were your 2012 resolutions to cut spending or improve your income? How did you do? How will you avoid your own ‘fiscal cliff’ in 2013?
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