Hi. Jon again. Will be 30 next month. I originally posted in the introduction section, but I thought making any update should be appropriate placed here. See below for original post.
I'm finally posting the much needed update. I welcome all criticism and advice. I've taken some pretty big moves in my life while some may view them as steps back financially. Much of 2017 was about getting established well in our careers as well as personal lives. This year will be focused on getting rid of consumer debt and starting emergency fund. I ill focus more on building investments at a later time. See key facts & figures below as well as debts/debt repayment estimate attached (conservative plan).
- Combined income = $107,500
(Due to my wife taking a 1 year "residence" position that is about 70% of actual income. Supposed to yield more income via accelerated career in Sept 2018. Raise for me next month (not sure amount).
- New Mortgage ~ 200K @ 3.25%
(Mortgage and taxes equal slightly higher than would be rent).
- Total Debt = ~150K
(Not including mortgage. See attached for debts and paydown estimates)
- Tax Liability = $0
Other Information - Have not made the progress that I intended, but I am optimistic about getting over the hump. No significant savings as of yet. I used what money we had to limit additional student loans and medical bills for new child. Currently contributing 7% to 401k
Take Home: ~$6,000/month
(Contribute decent amount to HSA and FSA to minimize taxes)
(Mortgage, Childcare, Minimum Debt repayments, Insurance, etc.)
: ~ $1,400/month
(Food, utilities, personal care, etc.)
My budget accounts for 24 of 26 paychecks. I ignore "extra checks" (March and June 2018) and plan to put towards debt/emergency fund.
-Increase income by at least $25k
-At least $5000 towards emergency fund
-Start roth IRA & Contribute $11k (wife and I). Traditional IRAs at later date when taxes are higher.
-Effective tax rate <= 7%
-Pay down debts. At least $25k. I will use tax refund and bonus to help do this.
I appreciate anyone who reads, criticizes, and/or make suggestions. Let me know if you are interested in anything else. I hope to find people in similar situations to hold each other accountable.