Hi everyone, Happy February!
I joined for the first time last month, so I'm still getting my bearings, but here is what's going on for us right now:
0-- Get current on bills -Done. Always done.
1 -- $1,000 to start an Emergency FundDone
2 -- Pay off all debt using the Debt SnowballWe'll be on this step for a while, I suspect. But it could be worse -- we only have one cc debt, around 7K, that is at 0% percent interest for a year, and we are able to pay $150/month on it right now. If I can successfully cut our budget in other areas, we can hopefully pay off even more every month. Or, if our former house sells this summer (cross all fingers and toes,) we will pay it off in full.
3 -- Three to six months of expenses in savingsWe've got 2 months' worth of living expenses saved, but can't contribute anymore to savings right now. I asked last month about using our savings to pay off the cc, but since the cc debt is at 0% and the savings are earning around 5% and we can't afford to replace them anytime soon, I'm leaving them there for the time being. DH is self-employed, we've got a large, young family, and I homeschool half-time and have a child w/SN, making it very difficult for me to supplement our income. So having that cushion is important to us, in case DH's business is negatively affected by this upcoming recession.
4 -- Invest 15 percent of household income into Roth IRAs and pre-tax retirementCan't do this yet, although we used to in previous years. Right now, we own two homes b/c our old house didn't sell and although it's rented, the overall cost of running two households is killing us. I did find some ancient savings bonds my grandmother gave me (about $900 worth) in my files the other day and am thinking about putting those into my Roth IRA as this year's contribution. Better than nothing, right?
5 -- College funding for childrenEveryone has an education fund, including Sophie, who has a special needs trust, but it's mostly grandparents and aunts/uncles who contribute to them at the moment. Still, every little bit helps.
6 -- Pay off home earlyI so can't wait to be here! Actually, right now I'd just settle for only owning ONE home, lol. Owning two homes may sound glamorous, but that hasn't been our experience at all!
7 -- Build wealth and give! --- Invest in mutual funds and real estateI hope I live long enough to get to this point.