Looking for some advice on where I should focus my efforts. I will provide a little background first.
I have made some rather large and unfortunate financial mistakes and have been paying for them. I have managed to fight through some of them, but am looking to those who have succeeded with money to offer up some information to move further along.
As I mentioned I made some missteps, I have taken on 2 extra jobs in the last 2 years to help clean up some of this. Here is where I stand now.
I am mid 30’s never married and no kids, my primary job provides a pre-tax income of around 41,500 and that will increase 8 percent in July and another 10-15 percent next July. The 2 part-time jobs add an extra 10k a year pre-tax. I plan to only focus on the income that comes from my “career” and not the 2 side jobs as I am looking to quit those in the next few months.
My current liabilities are as follow:
Home mortgage balance 55,000 with a payment of 373.00(this includes taxes and insurance) with a 30yr 4.6% rate. I have around 25 years left on this loan. Home appraised for 119,000
Home equity loan. 33,000 with a payment of 268.00 at 5.25% this is a 15 year loan.
Student loans(recently consolidated) balance of 27,000 payment of 180.00 and interest rate of 4.3% ( have applied for Public Service Loan Forgiveness)
1 credit card remaining with a balance of 700.00(this will be paid off in August)
My monthly expenses are as follow:
Cellphone- 260.00 per month. I know this sounds outrageous, however I carry 3 lines and have grandfathered unlimited data and hotspot coverage on 1 of the lines. The area I live has no cable internet service available to me at my home. I could use satellite, however it is limited and much slower and I must have sufficient speeds as I work at home on occasion. I had satellite when I first moved and my experience with it was terrible.
Car insurance 43.00 per month. I have no car payment and I have actually only had a car payment for 12 months in my entire life. I drive an old truck that was given to me by my grandfather. However, the truck is a pretty big fan of gasoline and that puts me around 240.00 per month in fuel. I also live in a very rural area so biking isn’t the answer here, its 30 miles to the nearest town. I do however combine as many trips as possible and do any needed shopping when I am in those areas.
I average around 45.00 per week or 180.00 per month in groceries.
I allot myself 100.00 a week to spend at my discretion. ( I realize from reading some post that this may be considered a lot by many).
My utilities are covered by a roommate, they pay no rent. ( I am fine with this arrangement)
Take home pay-2700.00 per month
Total liability payments- 821.00
Total expense payments-723.00
Weekly discretionary 100.00 (400 per month)
Remaining funds 700-800 per month
Of course the grocery and gas numbers are an estimate, those numbers may go up or down a little, but they are very close.
I guess my real question is do you see anything that can be improved upon? I know some of the obvious answers such as the cell phone, but I am stuck in hard spot with that, there really is no alternative answer that I am aware of?
Would you be more apt to try and pay down the mortgage or use the free money to invest? A little background on the home it is a family home, so I do not look at it as an investment, It is not an option for me to ever sell the home, even if life leads me in other directions in the future, I would not do so as it is part of a family farm. Because I don’t see the house as an investment, I am having a hard time deciding to try and pay it off more quickly it feels like any extra money should be going to investing? I have worked hard to pay off consumer debt, and get down to the place I am now. Hence, why I do not want to include the 2 part time jobs income, I am tired and ready for some free time.
Also, my main job is a government job and I will have a pension upon retirement, I know many here are looking for early retirement, I am as well, however my idea of that is age 55 which is the first option I would have to retire with pension benefits. I really enjoy my job and co-workers so that is really not the main reason I am here. As I mentioned I have made some real mistakes and one of the largest was withdrawing money from my 401k of the job I had in college, I was broke and when I found a new job I cashed it out. Therefore I lost a ton of money and hate to think of what the beauty of compounding would have done to that by now. However, I am trying to live where I am now and not dwell on that.
As, I stated I would love to have any advice or comments that you would like to offer.