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Hey, good on you for posting over here! Thanks for the additional detail. When I look at your overall financial picture two things kind of jump out to me that aren't solveable from the windfall alone. 1) You got no savings and specifically no retirement savings. You are calling yourself old at 32, you're going to be feeling a lot older at 64. What's the plan then? The windfall can give you a leg up here for sure but you do have to think about how to make saving for that future a priority. Even being able to carve out a hundred or two hundred bucks a month will make a difference. 2) You are living in a free house but that situation can change rapidly (breakup, parents decide something different, etc). It seems like there isn't much wiggle room if you start having to drop a grand a month on rent (although this could very well be less in NNE). I think you should plan and budget as if you don't have a free house. In general I think your new windfall special spending ideas sound like good ones. Get a couple quotes for the plumbing for sure. You should finish school, you are very close, but you should do it at a time that makes sense for you that will allow you to be successful. Wouldn't count on student loan forgiveness, though. Windfall totals, assuming you get $90K: $17,000 - Paying off various CC, personal, Affirm debts $9,000 - various treat yoself stuff $10,000 - emergency fund, six months of expenses but increased to offset the fact that if you need to dip in to this it's quite possible your free housing situation has gone away Leaving $52K. I would suggest: 1) Make sure you can pay for the rest of school. Shouldn't be horribly expensive. 2) Open a SEP IRA and start contributing to it. You can contribute up to 25% of your earned income from your business, which means you can stuff $10K in here annually. You should do that for sure this year (you can buffer from your remaining windfall) and also next year. This will then leave you with roughly, I don't know, call it $35K. I think you should then consider your overall financial and life goals. IMO, figuring out an alternative to the current free house situation should be on that list - you want to make sure you are using your money to a) increase earnings (school is good!), b) secure basic needs now (shelter, transportation etc), c) mitigate risks (efund), d) secure future needs (retirement money)
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Jun 4, 2021 02:30
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| # ¿ Apr 29, 2024 09:16 |
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Dik Hz posted:How's that worked so far? Christ what an rear end in a top hat post. Empress Brosephine posted:Oh yeah sorry if thats the way its coming over, i'm just generally interested in the way the economy(?) has moved that way. Always seemed kind of backwards to me that we put so much into retirement instead of enjoying life as we live it but I guess thats more of a capitalism problem lol. Yeah, money is just a means to accomplish goals, and I think you're finding some of the limitations with not having clear goals. You get a big windfall and you think about how to spend it, rather than having it just kind of self-allocate to your goals. There is a balance between enjoying life as you live it and not eating catfood in retirement. In retirement you have very limited income and your medical and life expenses tend to increase due to the fact that you're old and broken down. You need to prepare for this because there is not an adequate social safety net for old people, even though they do have the most robust social safety net out of all groups of Americans. Your parents don't have any money saved for retirement, what's their plan? Are you going to be on the hook somehow? You don't wanna end up like that.
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Jun 4, 2021 15:42
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There's a financial goals thread around here somewhere, but probably a good idea to get your life goals in order too!
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Jun 4, 2021 22:42
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what's the interest rate on the note on the car?
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Jun 11, 2021 15:19
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ya im gonna go with "don't pay off the car note early" although 31k for a corolla, woof. water under the bridge on that though.
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Jun 11, 2021 16:36
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