I’m currently throwing about $2000/month to pay off debt. Next month, I’ll be set to pay off the last of my debt *yay*, besides our mortgage. Now I’m trying to decide what to do with that extra $2,000/month.
We still owe ~$190,000 on our mortgage. I have about $6,000 saved up in a HYSA for emergencies. I have about $10,000 currently in a 401k for which my current position does not offer retirement matching.
I would like to have an emergency savings of about $25,000. I would also like to grow my retirement savings as well as get the house paid off ASAP. I am 31 fwiw.
I don’t know what to prioritize or how to go about this. I’m the first and only person in my family to ever not just be living paycheck to paycheck forever and know virtually nothing about finances.
I’d love to know how to be the most efficient with my money to set myself up nicely in the next few years. Any advice or thoughts are appreciated thank you!
What to do with extra funds each month?
byu/Mindreader_88 inpersonalfinance
Posted by Mindreader_88
4 Comments
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics.
Get a month ahead on mortgage payment. Put the maximum amount you are allowed to in a ROTH IRA. (You have until April 15 for 2025 to do this.)
We are in a similar situation, so what I actually did, as I put that money in the stock market. In stocks, such as QQQI, VTI, VT, etc. then I got a line of equity on the house as my backup money for emergencies. I’m not saying this is perfect for everybody, but it seems pretty much logical for me.
I was $5k short on cash and I used my high yield savings account and set cash levels to invest over cash thresholds. While you’re building the $19k you could match the cash amount with investments. Saving excess cash has a lot of opportunity cost.