Thanks Sunshine, we have already discussed the local community colleges as the only affordable option currently. If they want more than that, they will have to get the grades or help pay. It is a little bit difficult to post our income, because I started a new job in December & the hours have been slowly increasing. I'm estimating on the lower side but I feel that we have potential to make more if more hours become available to me. I'm also keeping my old seasonal job but will have less hours than previously. I'm basing my assumption of hours on my husbands hours from last year as I will have the same schedule as him this year, so I should get pretty close. We grossed $80,000 in 2012 and if my estimates are correct with the job change we should gross roughly $95,000 for 2013. Our 2nd jobs are seasonal with the the extra money coming in, in the summer & fall months, this is also when we have to pay for childcare. We pay our older daughter to watch our younger daughter which means that we can't deduct it from our taxes, but she is saving for her first car!
Where can I learn more about investing? I want to get my Vanguard Roth IRA opened soon but I'm hesitant because I'm pretty clueless!!!!! My Dad suggested using stocks for this account but I hardly know where to begin. I already started opening the account but once it asks what kind of funds I'm lost! Help!
These are our current monthly expenses:
$1353 - mortgage including pmi, homeowners ($800/year, taxes $4,000/year) (22 years left currently 4.78%) (we want to refinance &/or start paying more aggressively once we both establish Roth IRA's) I just called our lender & they no longer offer the lender closing cost credit! We will only save 1% with an interest rate of 3.78%. Closing costs are about $2000. We also would have to front the taxes & insurance, but would get it back after closing ($2,400), so a total of $4400. We would have 1 month that we don't have to make a mortgage payment. I could coming up with the upfront fees, by robbing my savings account designated for Roth. Also we do not have enough equity for a fixed 15 year loan....I almost feel like refinancing isn't such a good idea right now unless I find a lender that is still giving the closing cost credit. Thoughts?
$550 - food
$200 - gas I work about 25 miles from home & I drive the civic. DH works 2.5 mi from home. He is in great shape & spends hours in our basement working out. I have discussed him biking to work weather permitting & but he has not been on board. How do people deal with showing up to work sweaty? Or if it starts pouring during the commute? Those are his major issues...We do need the 2nd vehicle regardless because he has to play taxi to the kids when I'm at work.
$321 - 2005 Honda Pilot ($2,000 left will pay off after Roth is fully funded for 2012)
$300 - 2012 Honda Civic (personal loan from Dad 0% owe $17,800...After Pilot is paid will start paying $1000/mo)
$154 - car insurance
$130 - electric
$210 - oil
$100 -wood pellet fuel
$130 - cable, phone, internet
$45 - cell phone
$50 - Kids sporting activities
$3,103 Total monthly expenses
Savings per year
$11,000 for Roth IRAs in 2013 ($5,000 for 2012)
$2,500 - Christmas Club
$3,500 - Vacation
$2000 - Cash
$3000 - 401k 6% of pay ($1500 - company matched 3%)
$27,000 -total
I must start a sinking fund as well... Once all of this is established what is the next step? How do I determine what makes most sense to pay down mortgage or invest more? I've read so many arguments going both ways that I don't know what to do!