by Welcome to our monthly update on the Nuestra Casa Fund (NCF), our dedicated savings for our future home purchase. As we kick off 2018, we’re excited to share our progress and insights on this crucial milestone in our journey to early retirement.
The Power of Focused Saving
Saving for a specific goal can be transformative. We’ve found ourselves eagerly transferring funds to our brokerage account as soon as our paychecks arrive. It’s a complete reversal from the typical spend-first, save-what’s-left approach. This shift in mindset has been key to our progress.
Our 2018 Game Plan
This year is pivotal for us—we’re on track to complete our NCF goal! Once achieved, these funds will remain invested until we’re ready to settle in a location with a pleasant climate and nearby beach. Our strategy continues to be maxing out retirement accounts while simultaneously saving for our home and other early retirement necessities.
The Unconventional Home Buyers
Imagine the scene: a 44-year-old Latino man or a 34-year-old Russian immigrant woman, both dressed casually, informing a realtor they’ll be paying cash for a house. No job, no bank approval needed. It’s an unconventional situation that challenges typical homebuying norms, and we’re looking forward to the experience!
January NCF Update
As of December, we’ve reached 85.1% of our home purchase savings goal, a 3.1% increase from the previous month. This jump was aided by dividends, a three-paycheck month, and reimbursed unused PTO. Our current allocation stands at 80% bonds and 20% cash, balancing inflation protection with risk management.
Below are our December results along with a year-to-date update.
| YTD NCF Update | |||
|---|---|---|---|
| Month | Percent of Goal Met | Benchmark | Percent Increase Towards 100% |
| January 2017 | 23.9% | 23.9% | Month that 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% |
| August | 49.1% | 42.4% | 3% |
| September (new target) | 78% | 77.2% | 28.9% |
| October | 80.5% | 79.3% | 2.5% |
| November | 82% | 81.4% | 1.5% |
| December | 85.1% | 83.6% | 3.1% |
Looking Ahead
While the next quarter may be challenging as we fund our Roth accounts, we’re confident we’ll catch up once that’s complete. Our target completion date remains August 2018.
As we watch the snow fall outside, we’re reminded of our motivation: to spend no more than one winter in the cold Northeast. Our NCF isn’t just about buying a house; it’s about creating the lifestyle we desire.
