Hey guys, I hope this is the correct place for this.
So I am finally looking to start the journey to a better financial future. I am not sure what my ultimate goal is, be it early retirement, regular retirement, or something else.
I think right now my main focus is to just get a little stable, and show the wife the a bit more future planning is the right thing to do.
I just came into some prize money, and have used it to pay down some outstanding credit card / student loan debt. As of now I have:
- ~$10k of open credit, with zero balance, across 4 cards.
- An anticipated FICO of ~725 next cycle
- A car, ~$300/mo payment, at 4.99%, with an outstanding balance of ~$11k
- About $1250 in my credit union savings account @0.05%
- Zero investments, IRAs, 401ks, etc
- A new job I just started in May, netting ~$2,100 every 2 weeks
- Monthly expenses minus car payment of ~$1100 (so, $1400 total)
- An anticipated $2,250 that will be owed on my aforementioned winnings next tax season (a 1099 will be sent later, I'm told)
So, I've been all over the place these past few weeks trying to learn as much as I can about, well, money and finance.
I've been thinking about opening up an Ally MM / Savings @0.84%, and moving my bit of savings there. I have also been thinking about paying off the car aggressively, as it has a higher interest rate than the money would be making if I saved it (from my understanding).
I've also been thinking about finally starting a Roth IRA, at Vanguard, and pursuing the VFINX fund, just to try to get a bit of retirement starting.
But, I've also been thinking about just skipping the IRA, and putting money into VFINX anyway, so if need be, I can get at the $ (early retirement, or something). But this seems like it's not wise. I feel I should probably do the IRA, at max, and keep that as the long-term, and do something else in the near term, but what?
2 weeks ago I didn't know what an IRA or mutual fund, or an index was, and I'm still quite overwhelmed (but slowly coming along thanks to ficoforums, MMM, and Khan Academy).
In addition, the wife isn't too hot on the idea of strict savings, as we've been carte blanche spending for the past 4 years.
So, I don't know exactly what to do, and feel that before I can really get through to her, I need to make some progress of my own, to show her it can be done, and isn't horrible.
Thanks everyone, and if I missed anything, just let me know!
Edit: I'm 24, if that matters :)