I returned to work full-time on Sept. 19 and my husband will start his new job on Oct. 22. We are out of debt due to cashing out two retirement accounts because I wasn’t planning on returning to work.
We are painfully aware that we are sorely underfunded for retirement, but we also have a 1997 Acura that is on its last leg. We would also like to own a home (a modest one this time).
We are struggling to prioritize these purchases while still saving and investing. We also know we have to do what’s right for us. So far this is what we have:
- Emergency fund, savings for income taxes and 401k contributions.
- Tuition – My husband is going back to school in January.
- Buy a car – We’ll need to replace the Acura before we have cash to pay for one outright, but we intend to pay it off early.
- Buy a home – We will probably take advantage of a VA loan and hope to have a mortgage payment that less than our current rent.
- Vacation – We don’t know where or when since my husband is starting a new job. There is a possibility my sister will still have a destination wedding this winter.
- Additional retirement investing beyond 401k and house value.
Are you out of debt? How did you make decisions regarding your future?