I graduated in 2008, moved back in with my parents to save money and find a job. I steadily watched my savings dwindle as I struggled to find a job in a sector hit by the recession. Jobs weren't coming easy but 6 months after graduation (ouch) I had a good paying and steady position. For the next 9 months I did nothing but eat, sleep and work to save for a down payment on my first home. Looking back I managed to put away over 80% of my income each month (Wish I had that power now
I've been in my house now for about 9 months and am starting to break from my house poor state of adjusting to all the new bills and frills of owning your own home. I have two cars, both payed for and have never carried any sort of debt outside of my current mortgage. 6k Emergency fund, 2k in regular savings, enough funds in checking to cover 1 extra month of bills (I like to have plenty of wiggle room in my main accounts). So now the fun begins...
2008 - Get A job
2009 - Move Out / Buy home
2010 - Lay the financial groundwork for the coming years.
I'm mixed on my goals for 2010 and thats where I hope you'll step in.
1. I'd really like to get my E-Fund up from 6k to 10k and eventually 12k.
2. I just started a Roth IRA with 1k, I'd really like to max that out this year as I won't be eligible to start 401k contributions until Jan. 2011.
3. $50 Extra a month to my principal payment on my mortgage. Looking at 22k savings and 4 years off my mortgage for the small additional sum of $600 a year.... sounds fantastic to me.
#3. seems super easy to me, its 1 and 2 that have me thinking. I don't make the money to be able to do both. Should I split evenly between them or go all for one or the other? I think I'd be most comfortable with the E-fund however the IRA could be used in an emergency as well and I'm lacking in retirement funds so far. I typically have between 100-300 left over each month with my current budget and would still like to have some play money (50-100) even after investing in the E-Fund or IRA.
Any words of wisdom are greatly appreciated.