I'm 37, married, have a newborn, and I think I've covered the common steps. How's my financial health look? What can/should I do next?
Here's my status:
- $150k combined income
- $15k in liquid savings
- $400k across all retirement accounts
- I max out my 401k contributions, spouse contributes about $6k a year
- Roth IRAs are both maxed
- Starting a Florida Prepaid 4-year University plan next month
- $21k remaining on car loan at 0.9%
- $228k remaining on mortgage at 3.99%
- I churn credit cards (no debt) and bank account bonuses for fun, and to pay for vacations
We try to live below our means, so sometimes I'll have a little extra each month. What should I do with it?
- Put it towards mortgage, the highest interest debt we have
- Put it towards car payment. Spouse's car is 6 months old, mine is 7 years old. This would allow us to maintain a single car payment whenever I decide to get a new car
- Put more towards retirement? After spouse maxes 401k contribution, what's next?
- Save the cash for now, because having a kid is expensive, and I have no idea what those expenses will be
- Just spend it and enjoy it. I don't mind spending money on experiences (eating out, vacations) but I rarely like to spend money on tangible "stuff" (clothes, electronics). That being said, there are things we would like, but don't necessarily need (a better fridge, new landscaping, housekeeper)
- ???
Submitted March 16, 2018 at 01:50AM by twistoffate4 http://ift.tt/2FX51X1
