I've been making progress over the past few years on becoming more mustachian by aggressively paying off debt and making contributions to my retirement accounts, and this year I'll see a significant increase in my income so planning on making many improvements on my road to FI.
Here is my situation:
I am a single female, 34, and live in a seasonal town that experiences 2 heavy tourist seasons, summer & winter, and my main form of employment is from full time bartending, so weekly paychecks vary greatly over the course of the year. On average, I can expect to earn yearly:
Bartending Job #1 Gross $60,000 (year round)
Bartending Job #2 Gross $20,000 (Dec-April, Ski resort)
Airbnb Income: Gross $28,000
New Side Gig: Airbnb booking & communications agent for a friend (I earn 22.5% of his bookings. Estimated for 2017 $42,000) We started working together late last year so I earned $13K from this venture in 2016 in the form of part time, self employment income :/
I just set up an S Corp a few days ago so all income will be flowing through the corporation from now and I can pay myself if needed.
Monthly Expenses/Spending
Mortgage $134,000 @ 4%, 20 year loan, 18 years left $1250
Car insurance & repairs $120
Utilities (gas, electric, water, sewer, garbage) $175
Food $400
Gas $80
Alcohol $100. I know, I'm bad at this!
Clothing $75
Phone/Internet $125
Travel: $200
Health Insurance: $304
Debts:
$5000 on a credit card @ 0%
Contributions:
$18,000 to 401k, no match
$3400 to HSA
$5500 to Roth
$1200 to Investment account
Balances:
Savings: $9000
Investment:$2434
401k: $15,800
Rollover IRA: $5500
Roth IRA: $25,500
HSA: $3350
My home is a small duplex 500 sq/ft each side. I live in one side & rent out the other side via Airbnb. 2016 was the first year I did this full time, before that my apartment was rented monthly @$700/month.
Last year I spent around $20,000 deductible expenses for my Airbnb business. Includes everything from smaller costs like internet, permit fees, heating, 1/2 of water & sewer, cleanings, to some major improvements to the home like painting, upgraded electrical, tree cutting, new windows & driveway. I expect my deductible expenses to be around $9000 this year barring any major problem with the house.
I also pay 12% of my gross revenue to my city from my Airbnb apartment for Transient Occupancy Tax.
I am playing 'catch up' for last year. I still owe $2000 to my Roth for 2016, just made my $3350 contribution to my HSA. I'll owe around $500 for my tax preparation shortly.
Currently I am contributing 100% of my income from Bartending job #1 to my 401k so as to front load it while I am also working at Bartending job #2 which ends in April at the end of ski season.
Income from this 2nd job is what I live off of & pay my debts
Income from Airbnb apartment goes into a kind of 'House Emergency Fund' which pays my mortgage and all costs associated with the house.
Income earned from side gig is payed to me monthly and always goes partially to a separate savings account for my taxes at the end of the year, and then to pay off debt. (I've left this account out of my numbers as it will go to $0 when I pay my taxes on April 15th) out. I should be out of debt, and moving towards saving & investing more, by around this same time, April 15th.
So, as I move forward to becoming debt free, what should be the next steps for me? What kind of savings/investment accounts should I move my extra money towards when I am?
