Congrats on paying off the mortgage. I'm still working on mine, but I'm sure it's a nice feeling to know you own the home free and clear.

WOW!!!!!!! Congratulations!

2013 Annual Savings Goals:

• $2,750 HSA*
• $17,500 Roth 401k*
• $5,500 Roth IRA (2013)
• $5,000 Roth IRA (2012) ... $0.00 (0.0%) but $2,500.00 already saved up to deposit the full amount by mid-April 2013 (50%)
• HARP2 Refinance on Rental Property
• Emergency Fund

* Not including employer matching funds.

Upon review of my 2012 expenses in an effort to project 2013 expenses, it's amazing how quickly everything adds up. I would never think that I spend nearly $20K annually with my relatively frugal minimalist lifestyle. It just doesn't register where all the money goes ... even though I'm looking at the complete breakdown by category on Yodlee. Below is the condensed version (rounded for simplicity):

• $6K Primary Residence (mortgage-related expenses excluded since they no longer apply)
• $3K Rental Property (net loss from negative cash flow)
• $3K Automobile
• $3K Groceries+Restaurants
• $1K Healthcare
• $1K Communication/Technology (CellPhone+Internet)
• $3K Miscellaneous/EverythingElse

Ideally I would like to be at $12K per year. I can theoretically achieve this by doing the HARP2 refinance on my rental property and also by renting out the master bedroom in my primary residence. I'm not exactly sure yet how much the refinance will end up costing ... depends on whether I roll closing costs into the new loan or attempt to pay down additional principal in an effort to reduce the monthly mortgage payment and further neutralize cash flow. As far as the emergency fund goes, anything is better than $0 so it will just serve as a reminder in the unlikely event that I have funds leftover for this purpose.

2013 Annual Savings Goals ... Mid-April Progress:

$2,750 HSA* ... $846.08 (30.8%)
$17,500 Roth 401k* ... $1,038.76 (5.9%)
$5,500 Roth IRA (2013) ... $0 (0%)
$5,000 Roth IRA (2012) ... $5,000 (100%)
HARP2 Refinance on Rental Property ... COMPLETED
Emergency Fund ... diddly squat

* Not including employer matching funds.

Originally my plan on the refinance was to extend to a 30-year to improve monthly cash flow; however, I changed to a 15-year term with my second loan application (after the first company wouldn't budge from an incorrect flood zone determination). This actually increases my mortgage payment by around $75 but, coupled with the rate reduction to 4.25% (from the original 6%), accelerates principal paydown (to effectively double) which will bring me joy to watch the balance shrink each month and make the closing costs of >$5K seem worthwhile.

I've made some headway in preparation for renting out the master bedroom in my primary residence. It is now fully furnished with a bedroom set (Craigslist) and linens (on clearance at Ross). So far I've purchased/installed interior keyless combination locks (eBay) for my bedroom and bathroom ... eventually need to get a set for the master bedroom and whereever else I feel like putting one. I obtained a pool keyfob for myself (long overdue) but still navigating the HOA involvement/procedures for someone to move in ... and at some point I need to figure out what I'm doing for a rental agreement too.

My contributions to the Roth 401k will switch to 50% upon my first paycheck in May ... such that my take-home pay will come out to about $500 biweekly (net). It's scaring me quite a bit because I can't keep this up unless I get a renter in here ... and even then it will be tight. I wish I could start this with a modest cash cushion but I need to do it now otherwise I won't max out for the year. It's a good experiment for whether I can reduce my expenses to that level though.