For Christmas, I received 2 checks each for 10k. I come from a poor background and I'm incredibly grateful to have received this. I never thought in my wildest dreams this would ever happen to me. Reading these posts from other people, I always thought this was just something that happened to others, and not me. I'm not too sure what to do with this. I read over the sidebar and laid out a plan below. I'd like to get your thoughts on my plan.
PAYMENT
One check will be for 2017 and another for the first week of 2018, the New Year. I'm based in the US and I live in a low cost of living state with no state tax.
STATS
- $14k in a Vanguard Roth IRA
- 6% of my income invested in my company's 401k managed by Betterment (up to my employee match).
- $2k in a USAA savings account
- my salary is 68k USD and my job is very stable and at a large company
- good credit (780s)
EXPENSES
- My apartment rent is $1100, and I live downtown, and don't have a car, which is fine because I can walk everywhere.
- I owe $3k to a family member for a loan
- I owe $5k on an Earnest (that's the company name) loan (7% APR)
PLAN
Based on the sidebar guide, my plan is to:
- Pay off $3k to the family member
- Pay off $5k on my remaining loan (payments were $380/month)
- Put $6500 into savings (for emergency fund) to bring it to $8500 total
- Put $5500 limit into Roth IRA for 2017
I'm 30 and single. I'd like to own a home at some point (I like where I live and plan to be here a long time and hate paying rent). There are a number of 3 bed homes in my area (I hear a 3 bed would be better long term for resale or starting a family). There are a number of homes in my area for about $180k.
QUESTION
Should I change any of my plan above to factor in my desire to buy a home? Am I following the sidebar guide correctly or should I do something different in general?
Submitted December 26, 2017 at 06:51PM by 20kthrowaway1 http://ift.tt/2l18OXU
