New furnace?

I've been thinking about replacing our furnace & air conditioning unit next year, in 2010.  Although ours aren't that old (they are currently 11 years old), they are low-efficiency and result in much higher gas & electric bills than we should have for such a small house. 

The federal energy efficiency tax credits will reimburse us 30% of the cost, up to $1500, for a high-efficiency replacement furnace & AC unit.  I'm not sure how much a new unit will cost, but I would imagine it would be in the $5000 range.

Homes are Expensive

We had to pick up a few items at Home Depot to continue working on some home repairs. A new circular saw blade, a pair of sawhorses, an extra-long drill bit, can of spray-primer & spray-paint, and a few sheets of OSB. We got to checkout and the total was $99 plus change. 

I don't think twice about dropping $100 at the hardware store, but I almost always cringe at the idea of spending $20 for a pair of pants or top. It's truly unbelievable the amount of money that we've put into repairs & renovations, and the amount of money that we're "hoping" to put in over the next year or so. 

As much as I'd like to renovate and redecorate everything to my taste, it's temping to just stop putting money into any non-essential repairs, and instead use all of it for fun stuff. Clothes, hobbies, vacations. 

Planning Ahead

I try to create a rough budget ahead about a year out for non-ordinary expenses, and about two years out for other major interruptions to cash-flow. 

Right now I'm hoping to completely remodel the kitchen next summer, and hopefully take care another big outdoor project. We'd also like to take a weeklong vacation, where we can stay at decent hotels and eat at nice restaurants and not worry about sticking to a meager budget. And of course there are a couple weddings that I'm in, which will require me to host or help host bridal showers and bachelorette parties. 

Initially I figured that we could afford to tackle both renovation projects, saving and paying cash as we go. With the vacation, the weddings, and a few other expenditures in the works, I don't think we'll be able to save enough to cash-flow it. 

I can't believe I'm writing this, but I'm already thinking about going ahead with both projects anyways and just putting it on the credit card. My card will be paid off completely by then, and Husband's card will probably be in the $6-8k range. We'd probably be able to save enough to pay off whatever was charged by early 2011 (six months or so later), so the interest accrued wouldn't be too bad. 

I want these projects to be complete, and I hate to delay them until the following summer (two years from now). We've talked about changing jobs and moving elsewhere, and having these projects complete would make it much easier to sell the house. We've also talked about starting a family, and I would want these things to be done before then. 

Home Repairs & Improvements

It seems like quite a few PF bloggers put a halt on all home renovation & maintenance projects while they try to pay off debt. But not me. 

Maybe it's because I like to have several things going all at once, or because I know it'll be several years before we're debt-free and it's not worth it to me to wait that long, but I want to tackle home repairs just as aggressively as I tackle debt. Which, at times, means sort of a bumpy road, with months of absolutely no progress whatsoever.  ;)

I've got several projects in various stages of completion right now, and many that I'm hoping to finish before winter hits. And although I've purchased a significant portion of the necessary supplies, there will still be some expenses.

• Deck:  $200 in materials (estimated)
• Misc. Tool Rentals/Purchases:  $150 (estimated)
• New Gutters: $800 (estimated total cost)
• Landfill Disposal Fee (hazardous waste & construction debris): $150 
• Replace exterior door: $150 in materials (estimated)
• Re-caulk exterior: $100 in materials (estimated)

Right now I've got $1000 set aside in the home-repair fund, and $1550 in estimated upcoming expenses. If we are successful in completing everything before winter hits, it might delay being able to pay off "my" credit card by the end of the year. It would only push it back by a month or so, which is a tradeoff I'll happily make. 

Upcoming Expenses

The next six weeks are going to have a few major expenses. I've known about some for awhile, and I've tried to budget for them, but I suspect there will be a few indulgent purchases too.

The boring stuff: 

There's an insurance bill sitting on the kitchen table, waiting to be paid, for almost $200. I think we have another two weeks before it's technically due, but I really ought to write a check and send it out. 

And we have a home repair that needs to be taken care of. It's been an issue for the past year, and I've pushed it off about as long as I can. I had a few estimates done last fall, and it was going to run about $1000. I'm not sure if it'll still be that much, if we'll be able to get a discounted rate because of the economy, or if it'll cost more because it's the "peak" season. I'm going to call around after the 4th of July to get updated estimates, and then we'll hopefully get it taken care of later next month. 

And now for the fun stuff: 

The latest Apple iPhone 3GS comes out tomorrow, and I'm pretty sure that we're going to upgrade and get one. It'll be a couple hundred dollars up front ($199 + tax + AT&T activation fee), plus our monthly cell phone bill will go up. And of course there will be the requisite accessory purchases - a new cell phone case, a clear screen protector, some spiffy applications from the iTunes store. 

I'm taking a mini-vacation next month with some friends, and it'll be at least $100. I haven't decided whether to drive or take public transit, and I'm sure we'll try to keep it cheap for dining and entertainment, but the absolute bare-bones cost would be $100.