Reply to Help me prioritize

Forum Index » Money and Finances

Reply to "Help me prioritize"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]Increase emergency fund to $50k
Max out both your 401ks next, I'd personally go Roth
Then pay off the cars and use that extra $ to send in 1 extra payment a year on the mortgage (this cuts 7 years off your mortgage amazingly)

Assuming you have about 9,000 a month extra (by your math, plus a little more for food, etc)

Year 1:
In 5 months you've hit the 50k mark in savings 
Then, even with 3,000 a mo towards 401k you've got 6,000 to pay off the cars. I'm guessing it's about 35,000 in loans? By month 12 you've paid those off and have $6,750 a month for debt servicing in year 2.

Year 2:
Continue the 3,000 a month for 401k. 
Take your $6,500 a month and set aside $300 a month for your extra annual mortgage payment. 
The balance of $6,000 apply to your high interest student debt.

Year 3 and year 4: Same as year 2.

Year 5: Shift 6,000 a mo towards 529 pans, aiming for $30,000 per kid.

Follow this and in 5 years you will have:

50,000 in emergency savings
180,000 in 401k plus appreciation and matches
No student debt left
No car loans 
Shaved an additional $20,000 off your mortgage principal you otherwise would not have as well as approximately a year off you payoff date. 
You'll also have an additional $1,000 a month available to you by the end of year 5.

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics