My husband just got a promotion and a raise. It will be about $300 extra take home a month.
Would you: Apply $300 extra to your mortgage a month shaving an additional 7 years off
Or
Apply $150 each of us extra per month to our Roth IRA?
Notes: We are both doing 10% of income to 401k with 5% match plus an additional 5% of gross into Roth IRA. however we are not maxing Roth's at this time.
We just purchased a house in June and it's a 30 year mortgage. We have been paying extra on it each month but putting the $300 extra towards it a month will cut off an extra 7 years. As we get pay increases we hope to just put that towards retirement or the house and continue to live off what we've been living off so far.
As far as our take home pay, we use about 60% for bills, groceries, mortgage etc. and 40% is getting saved right now for various things like a Christmas fund and a "new" car (we share one car right now). Next spring we will be saving for a new roof. After that we plan to put an extra $1000 a month towards mortgage and retirement.
We are debt free aside from the house and no kids. However when we do have kids (next 3-5 years) we likely will not be able to put $1000 a month extra towards mortgage because of daycare.
Thanks!
Submitted September 05, 2017 at 09:36AM by chailatte_gal http://ift.tt/2gCBu6r
