Adventure and Journey - Episode 2
We survived our first week living in our 25-foot toy hauler trailer!
Think about it, 25 feet long by 8 feet wide. Our total living space is 200 square feet! Don't forget to subtract the ever-fluctuating footage of floor space taken up by our two Golden Retrievers Big Bear and Fawnskin, aka The Butters.
As I mentioned in Adventure and Journey - Episode 1, we sold our lovely home in California and moved to Arizona. There is no house yet in AZ. Instead, we bought a piece of land!
Our builders, Merrill Home Builders of Lake Havasu City, anticipate a 10-month build time. I'm telling myself a year so I don't get disappointed if the build time runs a little long. However, we are off to a great start… we now have a wall!
Cash Flow Changes
As a Certified Financial Planner®, I help clients spend wisely on what they truly value. We establish a budget (also known as a money diary) and regularly discuss their cash flow so they stay on track with their goals.
As we prepared for this life-changing move, I fine-tuned our budget. Now remember, I'm a SoCal girl born and raised. I love San Diego! However, this aspect of our move to Arizona has been great! We will be enjoying some significant reductions in costs.
Property Tax
We have downsized. In CA our home was 3100 square feet. The new AZ house will be 2000 sq ft. The cost to build new is less than the current market value of our CA home. In other words, we will have a less expensive home in AZ.
Property tax is calculated on the value of a home also known as assessed value. The assessed value factors both the land and improvements like a house, pool, and other structures. "The assessed value estimates the reasonable market value for your home"(Seabury, 2023).
San Diego property tax is a little over 1%. Mohave County property tax is around 0.70%. CLICK HERE for a handy property tax calculator by SmartAsset. If you are considering a move, check out the rates where you think you may want to live in the future.
With our downsize, we anticipate our annual property tax will be about 50% of what we paid in CA.
Homeowners Insurance
Homeowners insurance is going to be a huge change! Previously, we lived in a high-fire zone in Fallbrook, CA. For the past three years, our homeowner's insurance premium went up. In comparison, our new homeowner insurance will be a pittance.
Vehicle Registration
During our first week here, I went to AZ's version of DMV. It's called ADOT (Arizona Department of Transportation).
I went in on Wednesday, September 6 (remember this date). When I arrived a few people were sitting in chairs in front of the customer service folks. One service lady looked up and said, you are going to have to stand in line A. I looked to the other side of the room and spotted line A. It was empty. By the time I was halfway across the room to A, another service attendant called me to her desk.
About 10 minutes into our various transactions (vehicle and trailer registrations, our off-road vehicle (which in AZ is street legal), and a new driver's license), another woman entered ADOT. Quite loudly she exclaimed, "Oh my gosh, have I walked into the Twilight Zone! Where are all the people?"
Do you remember the date? I went into ADOT on September 6. Guess what? My registration arrived in our mailbox on the 8th and my new license arrived on the 9th. Wow, what service!
Additional Cash Flow Improvements
At the gas station, I paid just $3.89 a gallon. We have found most grocery items are less. Even with the air conditioner running 24/7 to beat the heat, electricity fees are less in Arizona.
Financial Planning Glide Path
We have chosen to take a somewhat unconventional glide path toward our distant retirement. However, this is what financial planning is all about. It is turning dreams into goals with a plan. Determining what you value in life and where you see yourself in the future.
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Stay Tuned
For more good laughs, savvy financial tips, and some updated pictures of the Butters and about a slow retirement glide path, stay tuned. Over the next year, I will frequently post about our Adventure and Journey.
References
Seabury, C. (2023, April 20). How property taxes are calculated. Investopedia. https://www.investopedia.com/articles/tax/09/calculate-property-tax.asp#:~:text=Property%20taxes%20are%20calculated%20using,set%20by%20the%20taxing%20authority.
