1. Open Roth IRA
- I currently do not have any type of retirement fund since my employer does not offer a 401k plan. My goal is to open a Roth IRA and begin funding for retirement by setting up automatic deposits from my checking account.
- I plan to begin allocating 5% of my gross income for this retirement account. Once I get in the rhythm (or get comfortable) I plan on increasing to 8-10% of my gross income (expecting that income will increase as well). Allocating 5% beginning in July is realistic considering my net cash flow rather than the 10% contribution I feel is necessary.
- By increasing my income/cash flow (see goal #2 below) I will be able to contribute more in the future. Beginning in July through the end of 2008 the foundation will be established. I will reconsider the contribution percentage at the beginning of 2009.
2. Increase Income
- Though I am not due for a raise throughout the rest of this year, I am going to ask for one towards the end of the year. I am expected to obtain my MBA in the fall of 2009 when I expect a major salary increase. Though not guaranteed, as everything else in life, I will continue working hard and obtaining as many skills possible in order to be much more competitive.
- I am currently also looking into creating multiple streams of income. If anyone has any ideas let me know!
- My wife is currently not working as we decided it would be best for her to stay home with Baby J until she is about 1 to 1-1/2 years old (maybe even 2 years old). Once we feel safe with leaving Baby J at a daycare our income will increase since dominiqueen will begin earning income again.
3. Continue funding Baby J’s Custodial Savings Account
- My wife and I recently opened a custodial savings account for Baby J with about $80 part of which was gift money from her Christening.
- We currently put all the spare change we get into a 5 gallon water jug. Once full we will deposit the money into Baby J’s account and will continue the cycle.
- I will be contributing $20 a month to her account. Though not much, it is a start. Once our income increases and our debt is paid off we plan on opening a 529 plan for her.
4. Continue Reducing Debt, especially Credit Card Debt
- As of right now I am paying off the smallest debts first rather than paying the balances with higher interest rates. Both are very popular methods and though paying off debts with the higher interest rates makes more sense financially, paying the smallest debts works best for me.
- I have almost paid off the first (smallest balance) credit card down to about $185 from almost $600 several months ago. Once that card is paid off I will attack the next biggest giant applying what I paid to the previous card.
- I have tried to consolidate all CCs into one but none of the CC companies want to extend credit to almost $6,000. The credit limits range from $800 to $3,000. (One bank increased from $1,400 to $2,200 when I called requesting a balance transfer earlier this month).
- We recently moved to a much more affordable place which will allow me to make double payments on my car loan, so instead of paying $300, I now pay $600 in hopes of paying off by the end of next year.
5. Increase emergency fund from $900 to $3,000
- Though $3,000 is a little over 1 month’s expense it is a start to increasing our emergency fund. Though I am thinking of focusing on reducing CC rather than increasing the ER fund.
6. Gain 15-20 lbs of muscle
- In February I began going back to the gym again and have been as consistent as time could allow. I have only missed a week here and there (basically during mid-terms or finals).
- I have been sticking to a weight gain diet, which has increased my expenses but has been extremely satisfying!
7. Prepare for post MBA career
- Schedule and attend an informational interview with a top company within the industry I plan to work in to get a feel of what they are looking for in preparation for employment opportunities after graduation.
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