I’m almost 34 years old and I feel so behind. I don’t have a retirement account at all—I spent almost 6 years in independent contract work and consequently had no PTO, retirement, health insurance, etc.
About 15 months ago I took a salary posting for a remote job making $62k/year. 6 months in I got a promotion to 70k and this year I’ll be making $80k/yr.
I also take on about $10-$15k/year in contract work to cover things like vacations, holiday spending, and fun money (I like to play poker and travel).
I sold my house part way through the pandemic because I had been living in poverty and debt was holding me back. I had bought for $114k back in 2016 for $240k in March last year and bought a new home in a location that was better suited for my family and much nicer. I paid all of my debts and put 20% down to avoid PMI.
I paid for my first vacation in 6 years and bought an engagement ring to propose to my gf (now fiancé).
I have no debt, mine and my fiancées cars are paid off (budgeting for vehicles—her Kia has 240k miles on it. My Ford Focus only has 100k and has a brand new transmission. It smells funny, doesn’t have cruise control and I hate it but it’s paid for and runs perfect. We both plan to care for and drive our cars until it makes more sense to get new ones.
My fiancé sends me $250/mo and pays utilities and groceries (she makes significantly less money than me).
I have $12,000 in savings now. Every month I pay:
$1,400 mortgage payment (4.75% interest with $215k on loan) $600 extra towards principal $600/mo. Child support About $300 for entertainment/eating out $100/mo life insurance (I think I could find way cheaper—I was also a smoker then and am not anymore) $150 gas and car maintenance $150 health/wellness (gym, massage) $200/miscellaneous (clothes, etc)
$900/mo is what I’m currently moving to savings.
I have a 10 year old daughter and want to save for her college/vocational/seed money.
I plan to take on extra contracts to cover the cost of our wedding. (I have a good reputation and am selective on the jobs I take because every year I am offered more than I have time to take on).
What are my next few steps on how to save/invest/change up what I’m doing?
I have my employer take out the max for taxes (no extra, but I will have exemptions and didn’t mark any to cut back what was being pulled from my check).
I have no HSA or IRA and my employer does not offer retirement or match.
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What are my best ways to cut taxes? I usually have a lot of travel to claim and end up with at least the standard deduction.
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How do I prioritize what to save/invest/pay down mortgage?
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What is the easiest way to track my budgets/spending/investments and ensure I am choosing the right goals and staying on track to achieve them?
Submitted January 07, 2023 at 12:47AM by AndrogynousBeast https://ift.tt/mTekKXD
