Hello Sage Mustachians,
CONS: I have a bit of a problem. I owe Uncle Sam some dinero, approx $4,000 from 2013. I haven't even filed for 2014 /15- I will imagine another $6,000- lets call it $10,000. I do independent contractor work as a side job and never started an LLC for it when I was a fledgling. All those lovely checks I received I cashed and never had the thought to put aside money for taxes- idiot.
Between now and then I had started a very legitimate business with my partner, sold out, and took a job with great benefits @ 52 k/yr. In addition to the contract work I still do ,for approx 4k/yr, my final whopping total is 56k/yr. I also chased that American dream and after renting a shitty apartment for years in Philly for $850 a month I bought a house and landed a mortgage of $980 a month. Said home was only 113 K @ 3.5% for a first time home buyer on a 30 year term. I was approved for a 215 K mortgage but went with a modest 3 br, 1.5 ba but we knew we didn't want to be house poor. My dumb-assery continues because upon taking that job and house my commute is now 40 minutes each way/ 70 miles round trip 5 days a week.
My husband just finished up a psych/neuro degree in September. He has been applying to jobs everywhere but to no avail. From PT to FT, from research and grants ( his background) to bagging groceries- no dice. This has clearly been a major source of frustration as well. He is applying for Grad school for Fall 16 but we are hoping to have some additional income before then. Until then, I am his (frugal) sugar mamma. I hope we can be DINKs for a bit, but now just SINK.
PROS: I have done so much reading on FI and frugality in the last two years and my eyes are wide open. I recently stumbled on MMM but before that I was checking out The Tightwad Gazette and Dave Ramsey. They are my personal and financial angels but I think MMM is my god
-We paid off hubs credit card, approx 7500, two months ago. The interest was approx 13%. Done. Zero balance.
- I have a $1,000 emergency fund as rec'd by Dave Ramsey. This is sacred and forever untouched
- For the last 6 months I have contributed my 6% to my 401K which is the minimum to get my employer match. I don't ever intend to stop this
- I started a Roth IRA last year and had $2,100 total by the end of 2015. I would LOVE to be able to max out my, and start one for my hubs, in 2016 and going forward
-I have a credit card now that has a 10k max, it has 8,500 k on it now but I have zero % interest until September. The balance will be zero at September. 25% of the balance is for my school.
-As a couple we are as earnest as every to reduce as much spending as possible. I am a solid lunch packing, oatmeal breakfast eating, and only have date night twice a month and its during a lunch special BYOB woman on a mission.
- We have a 98 Camry that is paid for and has excellent gas mileage for my commute.
- No undergrad debt from my husband thanks to my in-laws
My Questions to MMM Community:
Where the hell do I begin?
Do I pay off the IRS little by little or try to get that squared away first?
Should I just keep clunking away with my Roth IRA bc that will help me out the most later on?
Any suggestions at all would be extremely helpful!
- A confused Funky Chopstick