What should I save for first/more?

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scoutersig
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What should I save for first/more?

Postby scoutersig » Thu Mar 21, 2013 12:01 pm

I'm 30, married, and work for an outdoor school (a science camp: think week-long field trip in the woods). This means my employment is seasonal: only 8 months out of the year. I don't have employer-offered health insurance or retirement; I do have my own IRA.

I'm saving for four/five big ideas:
1) Emergency fund. I'm about halfway to $10k, which is what my wife and I agreed on.
2) Pay off student loans, about $20k. Currently on track to pay off in 7 more years with current payment plan.
3) Retirement. I contribute monthly, but not to the maximum.
4) House down payment. Currently not saving funds dedicated to this.
5) (Lastly) Child colleges. Currently not saving funds dedicated to this. Planning on no children for 1 more year, at least.

What order/amounts/percentage should I save for my situation? If I put everything into a retirement fund, there would be no savings for a house, and vice-versa.

Mario
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Re: What should I save for first/more?

Postby Mario » Thu Mar 21, 2013 1:13 pm

1. Emergency fund
2. Roth
3. Student loans if they're high interest rate and not deductible
http://debtblag.com

Track my fiscal fitness with $0.5 million in debt: http://getrichslowly.org/forum/viewtopic.php?f=11&t=61052 Latest update: As of April 16, I've paid off $21,400 in credit card debt this year (after starting with $35k)

peachy
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Re: What should I save for first/more?

Postby peachy » Thu Mar 21, 2013 2:22 pm

Looks like the order you have should be fine. It all depends on what is most important to you (and your wife).

KayakFunInTheFun
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Re: What should I save for first/more?

Postby KayakFunInTheFun » Fri Mar 22, 2013 3:22 am

Mario wrote:1. Emergency fund
2. Roth
3. Student loans if they're high interest rate and not deductible



I agree w this.

PSF
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Re: What should I save for first/more?

Postby PSF » Sat Mar 23, 2013 4:29 am

I think your doing it right so far. I wouldn't worry to much about a house until the first 2 are finished, there's nothing wrong with renting. Once the emergency fund is complete make sure everything you were paying into it goes into your student loans and hopefully that will pay it off quicker than 7 years.

Being from Australia I don't consider the college funds for kids necessary. Of all my friends the ones who left school early and got a trade, are, on average, an income about twice as much as the university friends. Plus they have no student debt and started earning money at 16.

So I recommend against the college one until you are in a comfortable position.

Mario
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Re: What should I save for first/more?

Postby Mario » Thu Mar 28, 2013 6:11 pm

Can I ask what you do with your free months out of the year? I'd guess what you do with this time has more to do with your finances than the order you put money away...
http://debtblag.com

Track my fiscal fitness with $0.5 million in debt: http://getrichslowly.org/forum/viewtopic.php?f=11&t=61052 Latest update: As of April 16, I've paid off $21,400 in credit card debt this year (after starting with $35k)

sosabe77
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Re: What should I save for first/more?

Postby sosabe77 » Fri Mar 29, 2013 10:06 pm

Mario wrote:1. Emergency fund
2. Roth
3. Student loans if they're high interest rate and not deductible


Yes indeed. Good tips.


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