by Welcome to our monthly update on the Nuestra Casa Fund (NCF)! We’re on a mission to save enough money to buy our dream home in cash before we retire early. It’s an ambitious goal, but we’re determined to make it happen. Let’s dive into our progress and share some insights we’ve gained along the way.
The Inspiration: Cash Purchases in Real Estate
While it’s not common, some people do buy their homes in cash. This approach, while ambitious, offers a level of financial security and freedom that aligns perfectly with our FIRE (Financial Independence, Retire Early) goals. We’re not aiming for a multi-million dollar mansion, but the principle of owning our home outright is a cornerstone of our financial strategy.
Why We’re Excited About Our Future Home
You might wonder why we’re so enthusiastic about saving for a “thing” when we’re usually all about experiences. The truth is, we’re not just saving for a structure—we’re investing in our future lifestyle. Here’s what we’re looking forward to:
- A music room where we can play instruments and sing karaoke without disturbing neighbors
- A garden to grow tropical fruits like mangos and avocados
- A bigger space to relax and enjoy a hammock
These are experiences we can’t fully enjoy in our current living situation, and they’re driving our motivation to save.
Our Progress: August 2023 Update
Now, let’s get to the numbers you’ve been waiting for:
- Current progress: 46.1% of our home savings goal
- Increase since last month: 7%
- Target completion date: June 2019
We’re almost halfway there, and we’re still ahead of schedule! While we saw a significant boost from recent bonuses, we expect our monthly contributions to slow down to 1-3% going forward.
| Year-to-date NCF Update | |||
| Month | Percent of Goal Met | Benchmark (the goal we set) | Percent Increase towards 100% |
| January 2017 | 23.9% | 23.9% | This is when we started tracking this goal. |
| February | 25.1% | 26.5% | 1.2% |
| March | 28.5% | 29.2% | 3.4% |
| April | 28.8% | 31.8% | 0.3% |
| May | 30.2% | 34.5% | 1.4% |
| June | 39.1% | 37.1% | 8.9% |
| July | 46.1% | 39.8% | 7% |
Maintaining Motivation
Saving for a long-term goal like this isn’t always easy. We’re used to almost-instant gratification in many aspects of our lives. But we’ve found that anticipating our future home and the experiences it will bring keeps us motivated. Plus, we know we’ll appreciate it so much more when we’ve worked hard to save for it.
Our Savings Strategy
Here’s a quick breakdown of how we’re approaching our savings:
- Locking away bonuses: Any work bonuses go straight into the NCF—no exceptions!
- Reinvesting dividends: We’re using dividends from our taxable account to boost our home savings.
- Balancing retirement and home savings: We’re still maxing out our retirement accounts while saving for the house.
The Big Picture: Net Worth Allocation
We’re aiming for an 85/15 split between our Freedom Fund (for early retirement expenses) and the Nuestra Casa Fund by the time we retire. Currently, we’re at a 91/9 ratio, so we’re making steady progress towards our goal.
| Allocation between FF and NCF | ||
| Month | FF | NCF |
| May | 93.7% | 6.3% |
| June | 92% | 8% |
| July | 91% | 9% |
| Goal ratio (%): 85/15 |
Wrapping Up
We’re excited about the progress we’ve made and the future experiences our new home will bring. Every dollar we save brings us closer to not just a house, but a home that will serve as the backdrop for countless memories and adventures in our early retirement. We recognize that this approach isn’t for everyone, and that’s perfectly fine—personal finance is, after all, personal. But for us, the peace of mind that comes with knowing we’ll own our home outright is worth every sacrifice we’re making along the way. So here’s to staying focused, celebrating small victories, and keeping our eyes on the prize—even when it means saying “no” to some tempting short-term indulgences.
