Author Topic: How I Plan on Saving $25K+ in 4.5 Months on a Teacher's Salary  (Read 4140 times)

Ed Mills

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How I Plan on Saving $25K+ in 4.5 Months on a Teacher's Salary
« on: February 03, 2013, 11:53:35 AM »
Greetings All,
I just wanted to share what I'm doing.  In mid-January I took a teaching job about an hour away from my home.  While I hate commuting, I decided to take the job and make the best of it.  To reduce my commuting time I stay two nights a week with my brother-in-law who lives about 10 minutes from my job site.  I hate being away from my family those nights, but I cannot spend two hours a day in the car. 

Now for the good part.  The first thing I did was set up a 457 and 403b plan with the district.  Since I had already missed the January deadline for contributions, I received a January paycheck that actually landed in my checking account.  Not what I wanted, but I made the best of it by using the money to open up a Vanguard IRA ($3,000 in the LifeStrategy Growth Fund).  I then set up contributions of $3,285.71 to my 457 account for seven months (Feb. to August).  This will result in $23,000 (old fart turning 50 later this year) stuffed in the 457; any remaining money will be sent to my 403b account. 

I took this job with the idea of using it to blow out some retirement accounts in a short period of time.  At the end of the school year, I can decide to return or resign.  If I decide to return (unlikely), I will be able to finish contributing to the 403b and my IRA.  More likely I will resign to take some time off with the family.  My wife is maxing out her 457 and 403b at her job too. 

We look forward to using our financial freedom to spend time traveling, visiting family and unschooling our son.  I hope this post helps somebody find their own financial independence solution.

Ed

p.s.  I forgot to mention that while school is over at the end of May, I will receive paychecks for the months of June, July and August.
« Last Edit: February 03, 2013, 06:39:06 PM by Ed Mills »

arebelspy

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Re: How I Plan on Saving $25K+ in 4.5 Months on a Teacher's Salary
« Reply #1 on: February 03, 2013, 01:14:10 PM »
Well done.  Thanks for the inspiration!  :)

That's about the same as the wife and I save (both teachers) but that's with both our paychecks, not just one.  So many teachers I know are so bad with money, thanks for setting the example.
« Last Edit: February 03, 2013, 01:16:17 PM by arebelspy »
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TheDude

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Re: How I Plan on Saving $25K+ in 4.5 Months on a Teacher's Salary
« Reply #2 on: February 03, 2013, 01:50:42 PM »
My wifes a teacher and I find sad that so many people have access to a 457plan and have no idea what they are.

Good work on you savings I hope it all works out for you.

amyable

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Re: How I Plan on Saving $25K+ in 4.5 Months on a Teacher's Salary
« Reply #3 on: February 03, 2013, 01:58:36 PM »
That's about the same as the wife and I save (both teachers) but that's with both our paychecks, not just one.  So many teachers I know are so bad with money, thanks for setting the example.

Another teacher here! 

We should be able to use about $24,000 dollars of my salary to pay down student loans this year.  I'm in graduate school to become a school counselor and my husband is finishing up undergrad, so that definitely takes a bite out of payment rate.  Thankfully, he'll finish this summer, and I'll finish next summer--woohoo!

Honest Abe

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Re: How I Plan on Saving $25K+ in 4.5 Months on a Teacher's Salary
« Reply #4 on: February 03, 2013, 02:53:51 PM »
So many teachers I know are so bad with money, thanks for setting the example.

Hear, hear!

We'll be contributing heartily into our 457s this year.... We'll look into maxing them out after I get a better look at our savings rate this year.

feistygg

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Re: How I Plan on Saving $25K+ in 4.5 Months on a Teacher's Salary
« Reply #5 on: February 08, 2013, 10:32:54 AM »
Congrats! Very inspirational!