Exactly one month from today my husband and I will be packing up our apartment in downtown Minneapolis and beginning the first leg of our long journey west to Gig Harbor, WA. While to some family, friends, and coworkers this seems like a spontaneous move, this journey has been years in the making. My husband first started dreaming of living on the west coast when he was in grade school and did a report on the state of Oregon. For me, it started with work trips I had the privilege to take out to Washington and Oregon. We both were drawn in by the breathtaking mountains, awe-inspiring shoreline, diversity of wildlife, and more temperate weather. The last few years we have slowly and methodically prepared for our next adventure. Here are some of the steps we’ve taken financially (and otherwise) to make it possible:
Selling Our House: We took this step in fall 2019, thinking it was the peak of the seller’s market … clearly we were wrong, but we are both still very glad we were able to sell our home prior to the pandemic. In addition to giving us flexibility as we planned our next move, this house sale brought us two benefits. First, we put the profit into a high-yield savings account, where it’s been earning quite a bit of interest. Second, we reduced our possessions by about half when we moved from our house in the suburbs into our apartment in the city. Less stuff to care for now also means less stuff to move cross-country.
Becoming a One-Car Family: While this shift brought a few more logistical challenges, the savings have been immense: no second car payment, garage parking fees, gas, or maintenance. Yes, we have some extra costs with driving my husband’s car more, taking Lyft, and the occasional Instacart delivery, but that’s nothing in comparison to what we’re saving. And because I started a sinking fund for a new vehicle right after I got my last car, I already have money for a down payment stashed away accruing interest in our high-yield savings account when we are ready to return to being a two-car household.
Maximizing the Student Loan Payment Pause: We used some of our savings to pay off my student loans right before we moved into our apartment. However, my husband’s loans still remained. Once the payment pause set in, we decided to put the money we would have been paying toward his loans into a high-yield savings account so it could earn a little more interest while we waited. Little did we know the payment pause would last so long! We also decided to go this route because we had been in the process of Borrower’s Defense to Repayment for a few years, so his loans were still technically in forbearance. While we still hope his loans will be canceled, we know we have money to put towards his loans if his borrower’s defense case is denied.
Trimming Back on Travel: If you read this blog pre-pandemic, you know that my husband and I LOVE to travel. During the pandemic, we were able to save more since we were traveling less. Now that most restrictions have lifted, we aren’t cutting travel out entirely, but we are choosing to travel less until we move into our home so we can put more away in savings. The good news is, we’re moving to an area with a lot of fun destinations to explore that are only a short road trip or day-trip away so there will be no shortage of adventure.
Making the Move Savings Priority One: This was one of the smartest things we did. That isn’t to say we haven’t saved for other things — we certainly did and will continue to — but for the past two years, the move has been our focus. We started by creating a budget for the move, so we would have a concrete goal. Then, we put any windfalls (money earned from my side business, my husband’s bonuses, stimulus checks) towards that goal. Any time we completed a savings goal (like reaching our targeted emergency savings balance or the down payment amount for when we get a new car) the money we had been putting toward that goal was reoriented toward the move. Every large purchase, and even our small ones, have been made with the move in mind. While I initially thought efforts wouldn’t make much of a difference since the goal was so big, I’ve been pleasantly surprised to see how it has added up.
Renting a Townhouse Instead of Buying a Home: While we initially made this decision to make logistics easier, it’s become clear it will also save us quite a bit of money in the process. First, waiting a year to buy will give us more time to save up for a hefty down payment. Second, we felt more comfortable renting from afar than buying, so we haven’t had to fly back and forth between Minnesota and Washington viewing houses and finalizing details. Third, since we know the cost of living will be higher in Washington than in Minnesota, this gives us a year to level-set our budget. We may even decide to shift our house budget based on what we learn. Fourth, given the variability in interest rates and the housing market right now, we can keep an eye on how things are shifting. Last, time to really explore the area will help us make the best decision about where we want to live so we can hopefully avoid any buyer’s remorse.
I’ll be taking a little break from the blog to work on packing and moving. I hope to be back on the blog in early November writing to you from our new home!