I'm so happy to have been given a giant raise for a ton of hard work and results at work. [High five!]
....And now I have so many questions. What do I do with the extra dough? How do I reduce my tax burden? How can I maximize this opportunity? I'd appreciate any advice as I need to create a plan
Here are the stats, let me know if there's anything else I should share.
New Income: $148,000 annually
New Take home: $6800/monthly (after 401k and Heath Ins)
401(k): $1450/monthly
I don't own a home. I split expenses with my partner. Avg $850/month.
Car: $440/month ($16,000 left on that loan.)
Other expenses (gym, auto insurance, phone, etc):$300
I have $3500 on a credit card
Retirement:$83000 over a 401(k) and a Roth IRA.
I have been putting $ into an account for a down payment on a rental property. That account has $5000
Emergency fund: $4300
My priorities:
Pay down CC ASAP
Get 911 find to $8000 min
Keep funding rental prop fund to buy a property ASAP
My concerns:
My raise is $48000 but my tax bracket and single filing status mean I'll only see $2000/month. Can I do anything to help this?
What do you MMMers think? What would you do?
Muchas gracias for your help and advice!!