Thursday, October 22, 2009

Money Plans

I have to say that I read lots of blogs and for better or worse quite a few of them are personal finance of p/f blogs. And some of you will say, ugh, another money post but check it out, it has actually been over 3 months since my last post on it so I kind of wanted to do an update and current plan for the BSquared family. Back in previous posts I had a detailed version of my 10 Baby Steps (check'em out, good stuff ) but that is only part of the story. Everyone needs a game plan, think of it as a table of contents for a books, but there is much more to a story, and a financial plan that isn't in the big layout in the beginning. So where we are now is

  • we have made automatic our pursuit of #4 of maxing out the Roth and will get there before Roth deadline of April 15 by creating an account with ING that gets the proper chunk of our salary to make this a reality without it ever hitting the banking account so it doesn't feel like we "have it". As I have mentioned before even the young have to try and save for retirement to get that compounding working for you.
  • we are also doing step #6 of paying off debts over $10k and with a above 3 APR using the debt snowball, kind of non-gazelle snowball to use Dave Ramsey terms but snowball nonetheless. What I mean is we are targeting our 2nd mortgage with double payments each month.
  • we also just started taking a tiny step towards #7 as I started contributing 1% of my salary to my works 403(b). I do so that when I am there for 5 years (still like 18 months away but still) I get a match from my employer for that % so why not start doing it know and I'll never miss it.
  • As a previous post this week mentioned I only have 1 class to go to finish my grad degree so tuition is at an all-time low (0) as compared to 1998-2005 and 2008-2009 when I was in school. An additional benefit to this is that after I'm done with the degree I can seek either new full-time employment OR picking up some part-time work that I haven't really felt I had the time to do with school always lingering.
  • the final thing I will mention is something I am very proud of my wife for is the fact she now has a part-time job. It is a dual benefit because 1. it does make money, and 2. it gets her some good experience doing something else, managing others in her field, and great networking for the future. Now we are making sure Uncle Obama gets his share (as we are putting that in, yet another, separate account) but I have promised my wife this is her money to spend how she wants be it clothes or a cruise or whatever (kind of like birthday or Christmas money). I am lucky because I trust her decision making and I know she won't completely blow it on something (like lotto tickets or something nuts) so we can break out of the Dave Ramsey hyper-intensity which IMO is so strict and intense at time the plan is "unlivable".
I will end with referencing some of the p/f blogs I read, I don't always agree with them but more times than not they bring good stuff

1 comment:

Enemy of Debt said...

Thanks for the mention and an even bigger one for reading. I am glad you have been enjoying it. :D