I’m looking for advice on the best way to save for both short and long term and fix up my home which I plan to live in for the long haul. I (sadly!) am FAR far behind and have nothing in savings. I want to buckle down and create a plan for paying off debt, creating a $10k emergency savings, and saving for retirement.
Here are the facts:
Me: Female, single, age 44 (I’m active and in good health. My kids are 19 and 23 and are self-sufficient. The older one lives on her own and has a good job, the younger one lives with me and is in college, but she’s super smart and has a full ride. I’m very thankful for our health and their opportunities.)
Income:
Self employment income: Currently $1000 a month after taxes (I can double or triple this in the next 3-6 months but right now this is the real number)
New job (starting this monday): About $2600 a month after taxes and health insurance (no 401k available right now as it’s a startup)
Expenses & Debt:
Monthly expenses including groceries: $2200
Debt: $3k in credit cards
Other:
I own my car outright, a 2018 Nissan Rogue, and expect to drive it for at least another 6 years (if not more)
I have about 100k equity in my home. Mortgage payment is $1100/month. I’d like to use $60K equity in the near future to fix up my house if possible. But I suppose that can wait for now. I really just want to stabilize my savings plan first.
Goals:
$10k in emergency savings
Pay off $3k in credit card debt
Save as much as possible for retirement without being totally deprived. ($300 a month as a spending allowance would be nice. But is that do-able??). Should I put as much as I can in a Roth IRA and the rest in a mutual fund?
I am at the tipping point, and if I don’t buckle down and do something now, I am going to be in serious trouble. I aim to increase my income within the next 3-6 months, but I need to make a plan with the numbers as they are right now. I’d love to hear advice. Thank you!
Submitted October 03, 2021 at 12:17PM by Clear-cutSquirrel https://ift.tt/3l7w9qm
