UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next
Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 744276  
Subject: Re: Just starting to save Date: 5/17/2004 5:44 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
2FoolsInLuv asks,

After all these expenses, I estimate that we'll have between $800 and $1000 left at the end of each month. It's this amount that I'm not sure what to do with.

Our savings goals include:
* $30,000 for the downpayment on a home in 3 to 4 years,
* one full year's living expenses in cash or accessible savings
* to start saving for a car for her that we will buy in two years.
* Some sort of individual stock buy-and hold plan like a DRIP plan.
* Also, I want to plan for a best-case scenario of retiring when I am 57, or 30 years from now.

So what should I do with this $800? Should I put it directly towards the car and the down payment? Should we aggresively pay our student loans down, even with our interest rates so low? Should we pay down loans now with our cash savings, and then work to rebuild our cash? Is retirement at age 57 even conceivable at our income levels? I will add that I can probably expect an income of about $40,000 a year when I'm about 55 from other sources not mentioned, but I'd prefer not to factor those into any plans just incase those other sources go to hell.


I'd prioritize the savings this way.

1) First, build up 6 months of livings expenses as an emergency fund. ($2,300 x 6 = $13,800)

2) Then start saving for a down payment ($30,000) for a home.

3) Then I'd start investing in stocks (either low cost index funds or individual stocks if you believe that you are among the small minoroty of investors that can beat the S&P500 index.)

intercst
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Smuggling Rice and Garlic
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement