Ok, one of my goals in 2010 is to better manage my household finances. Fortunately, I earn enough to cover them. But, I don't always plan well for them and would like some help with that.
I earn a bonus that comes to almost 1/2 of my base salary and it is paid in late January / early February. This is the first year in about 5 that it wasn't all already spent by the time I received it. So, I have a little bit of flexibility, but do need to pay $3154 in property taxes by March 2.
Next big bill will be 1/2 of dd's tuition, which, based on this year (although it could certainly go up) will be $3800. That will be due in August or September.
Currently, I pay our home insurance monthly - $271. Total for the year is $3220.
So, because of the front loaded nature of my pay, I will max out on SS taxes by March. That will put about $762 before taxes back in my budget each month.
I'm wondering whether I should also accelerate maxing out on my 401(k) (which I haven't done in a few years). If I do, I could be done with that by June and then put $1500 or $1600 before taxes back in the budget. As I type this, I think I'm answering my own question. The next installment of property taxes will be due around November and the home insurance comes up in November, too.
I currently put $400 mos in a money market (which has been depleted over and over again while we've been working on our house, paying tuition, property taxes, etc.).
I currently pay two mortgages; we hope to sell our condo this spring/summer (we just moved out of it this past October and if we can't sell it we'll attempt to rent it). I won't count on putting that money back in the budget just yet.
I also have to turn off the phone at the condo (thought I ordered it to be cut off, but I keep getting bills). And I have one remaining credit card with a balance. I plan to pay that off with a portion of my bonus. Between those two bills, I can put $340 back in my budget next month.
Right now, we have no car note, but we do need a new car. The current car has over 100K miles on it and no place for another adult to sit when my dh and I are in there with the two kids in their Britax car seats. It's a Hyundai Elantra. I'd like to purchase a new, family friendlier car next January. I'm making an internal job change within the next month or so, though, and the last thing I need to find out is whether I can expect the new department to maintain the level of my bonus. Because salaries had been capped for oh, 10+ years, the bonus really does represent part of our base salary. I just received about a $2K raise after not getting a raise for about 4 years.
So, what should I do here? Should I front load my 401(k) contribution? I just increased it by $140 and only saw a $20 decrease in my take home pay. Then, should I save the $340 + SS to pay the property taxes and home insurance in full in the fall? Oh, and the tuition - or would you just put the tuition money aside now out of bonus?
And lastly, I've finally admitted that I cannot do it all. I have hired a mother's helper for Saturdays. This will run me $12.00/hr. And we really need someone during the week as well. My husband is a SAHD and it's impossible for him to get any work done on the house with a 10.5 mos old around. Our 4 yo is a big help with keeping the baby from eating things off of the floor and what not, but, ya know, not really her job. I'm afraid I'm going to have to spend everything I'm putting back in the budget on a part-time nanny. Maybe this is where figuring out what to do with the 401(k) contribution when can make a difference.
Sorry for the ramble, but, I'm having trouble sorting it all out. Any suggestions would be appreciated.
Thanks in advance wise mamas!
I earn a bonus that comes to almost 1/2 of my base salary and it is paid in late January / early February. This is the first year in about 5 that it wasn't all already spent by the time I received it. So, I have a little bit of flexibility, but do need to pay $3154 in property taxes by March 2.
Next big bill will be 1/2 of dd's tuition, which, based on this year (although it could certainly go up) will be $3800. That will be due in August or September.
Currently, I pay our home insurance monthly - $271. Total for the year is $3220.
So, because of the front loaded nature of my pay, I will max out on SS taxes by March. That will put about $762 before taxes back in my budget each month.
I'm wondering whether I should also accelerate maxing out on my 401(k) (which I haven't done in a few years). If I do, I could be done with that by June and then put $1500 or $1600 before taxes back in the budget. As I type this, I think I'm answering my own question. The next installment of property taxes will be due around November and the home insurance comes up in November, too.
I currently put $400 mos in a money market (which has been depleted over and over again while we've been working on our house, paying tuition, property taxes, etc.).
I currently pay two mortgages; we hope to sell our condo this spring/summer (we just moved out of it this past October and if we can't sell it we'll attempt to rent it). I won't count on putting that money back in the budget just yet.
I also have to turn off the phone at the condo (thought I ordered it to be cut off, but I keep getting bills). And I have one remaining credit card with a balance. I plan to pay that off with a portion of my bonus. Between those two bills, I can put $340 back in my budget next month.
Right now, we have no car note, but we do need a new car. The current car has over 100K miles on it and no place for another adult to sit when my dh and I are in there with the two kids in their Britax car seats. It's a Hyundai Elantra. I'd like to purchase a new, family friendlier car next January. I'm making an internal job change within the next month or so, though, and the last thing I need to find out is whether I can expect the new department to maintain the level of my bonus. Because salaries had been capped for oh, 10+ years, the bonus really does represent part of our base salary. I just received about a $2K raise after not getting a raise for about 4 years.
So, what should I do here? Should I front load my 401(k) contribution? I just increased it by $140 and only saw a $20 decrease in my take home pay. Then, should I save the $340 + SS to pay the property taxes and home insurance in full in the fall? Oh, and the tuition - or would you just put the tuition money aside now out of bonus?
And lastly, I've finally admitted that I cannot do it all. I have hired a mother's helper for Saturdays. This will run me $12.00/hr. And we really need someone during the week as well. My husband is a SAHD and it's impossible for him to get any work done on the house with a 10.5 mos old around. Our 4 yo is a big help with keeping the baby from eating things off of the floor and what not, but, ya know, not really her job. I'm afraid I'm going to have to spend everything I'm putting back in the budget on a part-time nanny. Maybe this is where figuring out what to do with the 401(k) contribution when can make a difference.
Sorry for the ramble, but, I'm having trouble sorting it all out. Any suggestions would be appreciated.
Thanks in advance wise mamas!
