I haven't went into much detail on this in my journals, and I'm going to only disclose what is necessary, but in 2006 I become totally and permanently disabled due to a number of conditions. I was awarded SSDI. I work off and on part time as my conditions allow. I average $500 a month in income, but sometimes make more, sometimes nothing. I cap at $1,000. I am allowed this supplemental income while collecting SSDI.
Monthly income:
SSDI $825
Working: $500-1000.
I'm going to be out of debt, other than my $59,000 - 3.125% mortgage (27 years remaining), in under a year. My spending is low. After my debt is paid, my monthly budget (including mortgage, and all living expenses) will be about $960. If forced, I could likely get it under $850, maybe even to $800. I'm going to have anywhere from $365 - $865 leftover and I am trying to figure out what to do with it.
Emotionally, I would love to pay off the house, but financially it doesn't make sense.
A lot of the investment advice I have read won't apply to me. Here are a few reasons why: My income is so low I never pay income taxes. My mortgage interest doesn't even matter. I can't deduct it. I basically never get to deduct anything - student loan interest either. By the time I put in basics, I get EIC credit and it zeros out or goes $200 in my favor. So the investment vehicles where people are trying to lower their tax bracket don't really apply to me. For sake of argument - I will never make more than $12,000 a year. Let's just go with that.
I don't work enough hours to qualify for a 401K through my work place. I have been looking at IRA's and that seems to be the next step. But it looks like I could max out the $5,500 contribution (maybe/maybe not depending on health every year). So where do I put my money after maxing out the Roth IRA (I picked that over traditional as it seems to be the most flexible.)
Um, what else is pertinent? I have no savings. I have no retirement. I will own my 6 year old car shortly, and will have no debt other than rotating credit cards that I pay off every month starting next year.
It's less about securing retirement, and more about securing my future so that when the time comes that I cannot work at all I can live off the income I have coming in. My whole goal has been to try and live under SSDI - planning for the worst. I'm trying to be responsible and resourceful with what little I have. It was less expensive to buy my house than to go into fixed income housing/apartments (or section 8). So I bought a house. Due to a crazy sequence of events (too complicated to get into) the house, while old, has been completely redone. It needs to be painted, but that's about it. The only large expense that could happen would to be if the septic failed, but I do everything I can to limit use of water, and I don't even flush TP. That can be $20,000 to replace so I am doing all I can to prevent a failure.
I know my situation is a little different, and I want to thank you for your time in reading this. I'm physically limited now, and it will only grow worse with time. I'm trying to do what I can, while I can, to protect myself as I age. I'm 32.
My other thoughts are considering putting a tiny house on the property to rent for income, or as a back up I could live in it and rent my house out (likely $800 a month - Mortgage $313.) Income generated from real estate or investments is not considered working income and not subject to any limitations by SSA.
Thank you again. I have learned so much from this forum, through advice and MMM blogging. I never could have handled the last few years without the support and face punches of this community. I never could have gotten my expenses so low without it. I'm so grateful.
Also of note: My parents have no money. My net worth is more than theirs. I will not inherit anything, nor do I have any other relatives that I am a beneficiary of.