Long time lurker from Canada, thought I would introduce myself and throw out my situation for any suggestions. I have a couple areas where I could improve but overall I think I am doing alright. I’ve been doing a version of this for a long time. I’m 43, recently divorced with a seven year old son who I have half the time. I do not pay my ex-wife anything.
Income: $4300 net monthly after $820 pension contributions
Expenses:
Mortgage $2307 including 261 property tax, 5 years to go at this rate
Cell $59
Internet/ Cable $129
Heat $85
Hydro $90
Insurance $180
Gas $180
Food and Cash $300
Daycare $200
Totals around $3580
Assets:
House $245,000 book value, MV is higher – I bought a fixer upper
Retirement Accounts $230,000 mostly ETFs and a low cost DC pension - Average expenses 22 basis points
Cash $11,500
2010 Nissan Titan pickup $18,000
Education fund for my son $29,800, lndex fund, projected to fully fund him plus $50k
Liabilities:
Mortgage $136,000 at 3%. Minimum payment is about $1100.
I’m holding the cash reserve in case my job becomes unstable. I work at a university which sounds good but I’ve seen people dismissed all around me. I figure I can do two years without a paycheck between insurance and cash reserves.
The truck was a reaction to the divorce. It eats gas, but I drive a total of about 9000 miles a year. I paid $25,000 cash for it used. I also don’t pay for repairs – I can get those for free. Still I recognize this is one area I could improve if I bought a car and banked the difference.
My employer pays for internet access at the house, part of the $129. I do have cable which is about $80 of the charge.
My main question is what should I do with the approx. $1,700 free cash flow every month. Right now I am using it to 1) Attack the mortgage with over $1,000 extra a month. And 2) funding home improvements on a sixty year old ranch. I do all the work myself.
I think I have included everything, if you have any questions please let me know.
Thanks