What to do with surplus?- Budget101 Discussion List

Hi I'm new and my name is Shawn. I'm fairly good with budgeting. I have gotten out of all car debt. I only have house debt now. I have have 3 months emergency expensesmoney in an ING account, but wondering what to do with my surplus after this. I'm 33 years old. I am doing my 401K at

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  1. #1
    Shawn
    Guest

    Default What to do with surplus?


    Hi I'm new and my name is Shawn. I'm fairly good with budgeting.

    I have gotten out of all car debt. I only have house debt now.

    I have have 3 months emergency expensesmoney in an ING account, but wondering what to do with my surplus after this.

    I'm 33 years old.

    I am doing my 401K at 6% and then am putting in a certain amount of money into a "CAR FUND" so I can pay for my next car with cash.

    All other surplus I am thinking of putting into HOUSE payoff, however I don't have a ROTH IRA.

    Have any of you put all of yourother surplus into HOUSE payoff? Based on what I'm seeing I could have my house paid off in 7-10 years if I do this.

    I also have a desire to put the surplus into a ROTH IRA, but instead thinking it would be much better to be about 40 years old and have no morgage then I can be more open for giving as well as retirement saving.

    Tough stuff because crunching the numbers seem to suggest Roth IRA is better, but I have such a strong desire topay off the house to be rid of all debt.


    Thanks in advance,
    Shawn




  2. #2
    Shussy Sassmannshausen
    Guest

    Default What to do with surplus?


    If I were 33 and as good as you with my
    budget, I would spent at least 1/2 my exces


    On Mon, Mar 10, 2008 at 12:45 PM, Shawn <shawnonline@sbcglobal.net> wrote:



    <div style="FONT-SIZE: 12pt;FONT-FAMILY: times new roman, new york, times, serif;">
    <div style="FONT-SIZE: 12pt;FONT-FAMILY: times new roman, new york, times, serif;">Hi I&#39;m new and my name is Shawn. I&#39;m fairly good with budgeting.[/quote]
    snipped


    <div style="FONT-SIZE: 12pt;FONT-FAMILY: times new roman, new york, times, serif;">
    <div style="FONT-SIZE: 12pt;FONT-FAMILY: times new roman, new york, times, serif;"><span id>
    <div style="FONT-SIZE: 12pt;FONT-FAMILY: times new roman, new york, times, serif;">[/quote]



  3. #3
    Shussy Sassmannshausen
    Guest

    Default What to do with surplus?


    Sorry...meant to hit delete. But getting to the point, I would spent a good bit of my
    surplus $ on enjoying life.
    Shussy



    On Mon, Mar 10, 2008 at 5:27 PM, Shussy Sassmannshausen <shussy@gmail.com> wrote:


    If I were 33 and as good as you with my
    budget, I would spent at least 1/2 my exces



    <div class="Ih2E3d">On Mon, Mar 10, 2008 at 12:45 PM, Shawn <shawnonline@sbcglobal.net> wrote:



    <div style="FONT-SIZE: 12pt;FONT-FAMILY: times new roman, new york, times, serif;">
    <div style="FONT-SIZE: 12pt;FONT-FAMILY: times new roman, new york, times, serif;">Hi I&#39;m new and my name is Shawn. I&#39;m fairly good with budgeting.[/quote]
    snipped


    <div style="FONT-SIZE: 12pt;FONT-FAMILY: times new roman, new york, times, serif;">
    <div style="FONT-SIZE: 12pt;FONT-FAMILY: times new roman, new york, times, serif;">
    <div style="FONT-SIZE: 12pt;FONT-FAMILY: times new roman, new york, times, serif;">[/quote][/quote]




  4. #4
    Wayne Benner
    Guest

    Default What to do with surplus?


    Congrats on getting out of debt!



    I don't know what the interest rate on your home is,

    but if it is low, you would be better off throwing the

    surplus into the IRA. With compounding interest at

    your age, you should come out WAY ahead.



    wayne

    --- Shawn <shawnonline@sbcglobal.net> wrote:



    > Hi I'm new and my name is Shawn. I'm fairly good

    > with budgeting.

    >

    > I have gotten out of all car debt. I only have

    > house debt now.

    >

    > I have have 3 months emergency expenses money in an

    > ING account, but wondering what to do with my

    > surplus after this.

    >

    > I'm 33 years old.

    >

    > I am doing my 401K at 6% and then am putting in a

    > certain amount of money into a "CAR FUND" so I can

    > pay for my next car with cash.

    >

    > All other surplus I am thinking of putting into

    > HOUSE payoff, however I don't have a ROTH IRA.

    >

    > Have any of you put all of your other surplus into

    > HOUSE payoff? Based on what I'm seeing I could have

    > my house paid off in 7-10 years if I do this.

    >

    > I also have a desire to put the surplus into a ROTH

    > IRA, but instead thinking it would be much better to

    > be about 40 years old and have no morgage then I can

    > be more open for giving as well as retirement

    > saving.

    >

    > Tough stuff because crunching the numbers seem to


    > suggest Roth IRA is better, but I have such a strong

    > desire to pay off the house to be rid of all debt.

    >

    > Thanks in advance,

    > Shawn









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  5. #5
    Shelly Billingsley
    Guest

    Default What to do with surplus?


    PAY OFF THE HOUSE!!!!! Be Debt freeeeeeeeeeeeee
    Shelly

    ----- Original Message ----
    From: Shawn <shawnonline@sbcglobal.net>
    To: Budget101_@yahoogroups.com
    Sent: Monday, March 10, 2008 12:45:24 PM
    Subject: Budget101.com : What to do with surplus?





    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">Hi I'm new and my name is Shawn. I'm fairly good with budgeting.
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">I have gotten out of all car debt. I only have house debt now.
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">I have have 3 months emergency expensesmoney in an ING account, but wondering what to do with my surplus after this.
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">I'm 33 years old.
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">I am doing my 401K at 6% and then am putting in a certain amount of money into a "CAR FUND" so I can pay for my next car with cash.
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">All other surplus I am thinking of putting into HOUSE payoff, however I don't have a ROTH IRA.
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">Have any of you put all of yourother surplus into HOUSE payoff? Based on what I'm seeing I could have my house paid off in 7-10 years if I do this.
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">I also have a desire to put the surplus into a ROTH IRA, but instead thinking it would be much better to be about 40 years old and have no morgage then I can be more open for giving as well as retirement saving.
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">Tough stuff because crunching the numbers seem to suggest Roth IRA is better, but I have such a strong desire topay off the house to be rid of all debt.
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">Thanks in advance,
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">Shawn
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">
    <div style="font-size: 12pt;font-family: times new roman,new york,times,serif;">






  6. #6
    Dan & Jamieson Fredrick
    Guest

    Default What to do with surplus?



    <FONT color="#000080">WOW, Shawn -- can I be like you?!?!? PLEASE!!!
    <FONT color="#000080">it seems that we're lucky enough to have enough 'surplus' to go see family and friends (3 hours away) for a weekend or even stock up on necessities like paper towels, toilet paper, tylenol, pantry foods, etc...
    <FONT color="#000080">please feel free to share any tips -- and email me offline if you prefer!!!
    <FONT color="#000080">and, just my 2 cents - if I were as smart as you, and had the option -- I'd pay off the house, then go to the ROTH IRA after that was paid off...
    <FONT color="#000080">Good luck and God Bless...
    <FONT color="#000080">-Jamieson



  7. #7
    Wayne Benner
    Guest

    Default What to do with surplus?


    that would definitely be a nice short-term feeling,

    but I think most financial analysts would recommend

    the IRA.



    it must be sweet to have that choice, though...really

    can't lose either way

    --- Shelly Billingsley wrote:



    > PAY OFF THE HOUSE!!!!! Be Debt freeeeeeeeeeeeee

    > Shelly



    <HUGE EXCESS RETURN POST EDITED BY MODS>






  8. #8
    Herlean
    Guest

    Default What to do with surplus?


    Pay off the house, then increase your retirement savings to 15% - 20% in the

    401(k), plus other avenues for retirement savings. Be completely debt free and

    enjoy your life!



    Herlean



    Subject: Budget101.com : What to do with surplus?



    I have have 3 months emergency expenses money in an ING account, but wondering

    what to do with my surplus after this.



    <EXCESS RETURN POST EDITED BY MODS>






  9. #9
    Diane May
    Guest

    Default What to do with surplus?


    Work the Dave Ramsey 7 baby steps:



    1. $1,000 In An Emergency Fund

    2. Pay Off All Debt With The Debt Snowball

    3. 3 To 6 Months Expenses In Savings

    4. Invest 15% Of Income Into Roth IRAs And Pre-Tax Retirement Plans

    5. College Funding

    6. Pay Off Your Home Early

    7. Build Wealth And Give!



    You are well on your way. It looks like you should build up your

    emergency fund to 6 months of expenses from the 3 you have. Then go to

    investing more in your ROTHs. If you have have kids hit Step 5 and

    invest in college funds. Then go to step 6 and throw as much money at

    the mortgage as you can and pay the house off ASAP. After that have fun

    saving (building wealth), giving, and playing.



    Listening to Dave this afternoon on the radio he was speaking to someone

    in a similar position as you. He said once the house is paid off take

    whatever you were paying to the mortgage company and CC companies and

    have it drafted from your checking account directly in to a money market

    acct. He said that money will become a million dollars so fast you

    won't believe it!



    Awesome job you have done so far!!! We are on step "2.5" We have

    about 3 months living expenses set aside and we are working our debt

    snowball. All CC and HELOCs should be gone on about 2 more years!!!!!

    It sure feels good to be reaching and getting traction to a goal.



    If you want to learn more about Dave visit his web site

    http://www.daveramsey.com. I get no compensation for you going or

    anything. I just firmly believe in his plan because it is working. He

    has some great tools/forms to use for budgeting etc.



    Diane in GA

    living on cash only and loving it!






  10. #10
    Wayne Benner
    Guest

    Default What to do with surplus?


    don't know if we can trust Dallas for anything except

    assassinating liberals, but this is what they say



    <a href="http://www.dallasnews.com/sharedcontent/dws/bus/stories/031008dnnatnufoodprices.3c19156.html?npc&nTar&ybz" >http://www.dallasnews.com/sharedcont...nufoodprices.\

    3c19156.html?npc&nTar&ybz</a>









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  11. #11
    shawnonline
    Guest

    Default What to do with surplus?


    Yes I have heard of Dave Ramsey. I prefer Crown financial concepts, but

    Dave has some good ideas.



    ----- Original Message -----

    From: "Diane May" <dimay@charter.net>

    To: <Budget101_@yahoogroups.com>

    Sent: Monday, March 10, 2008 10:20 PM

    Subject: Re: Budget101.com : What to do with surplus?





    > Work the Dave Ramsey 7 baby steps:

    <EXCESS RETURN MSG TRIMMED BY MODS>






  12. #12
    shawnonline
    Guest

    Default What to do with surplus?



    Jamieson,

    I think for me I have always hada large distaste for any kind of debt!We are normally content with not buying alot of stuff and mostly doing inexpensive things with the family and like shopping at goodwill and handdown lots of clothes, etc. For example we use the library alot. I am in IT and work as a Systems Analyst and the only income in our family. My wife homeschools our 3 kids (4, 5, and 7).

    Never had credit card bills thatI didn't pay off each month (except when we first got married at 21and we got ourselves out of that quickly).

    I think what happened was in 2006 we bought a nice vehicle and that was the biggest debt I have ever seen for a vehicle. I didn't think about it much when I bought it.After a few payments, we decided to truly get serious about never get into car debt again. There are times my wife wishes we weren't so strict with the budget because she sometimes has a hard time with the price of things going up all around her alot so we adjust it alot, but that has truly paid off in only one year of being extremely frugal. That was somethings she talked about today, so many times we adjust it based on thecost of groceries going up.

    2006 we were pretty frugal, but 2007 and this year we have been very frugal and careful.

    We had never been big spenders before but we got really frugal in the last year and paid off tons of the car debt and built the emergency savings quickly.

    Here's some of the thingswe did primarily
    ==========================
    1) Got rid of the credit cards. I never had credit card debt, but I had a Discover card I would use to pay for alot of things each month. Ifigure I spent about 15%-30% more when I used credit cards and I could never seem to make progress before on the other debts and regular savings because of the credit card bill being so high each month (even though we paid it off each money it was a ball and chain to us!!!!).


    2) Started a budget and followed it very carefully. Cut most expensive entertainment and extra spending and out to eat costs. We had alot we could find to cut because we wrote down everything and evaluated what we did the previous months and where we could cut. We got SELF-CONTROL.

    3) Stopped extra payments on the house

    4) Adjusted my Federal Tax Withholding temporarily so I would get less back in tax refund and more back throughout the year.

    5) Adjusted my 401K temporarily to 2% while getting out of the car debt.

    6) Sold a few things.



    [quote]
    ----- Original Message -----
    From: Dan & Jamieson Fredrick
    To: Budget101_@yahoogroups.com
    Sent: Monday, March 10, 2008 7:11 PM
    Subject: Re: Budget101.com : What to do with surplus?


    <FONT color="#000080">WOW, Shawn -- can I be like you?!?!? PLEASE!!!
    <FONT color="#000080">it seems that we're lucky enough to have enough 'surplus' to go see family and friends (3 hours away) for a weekend or even stock up on necessities like paper towels, toilet paper, tylenol, pantry foods, etc...
    <FONT color="#000080">please feel free to share any tips -- and email me offline if you prefer!!!
    <FONT color="#000080">and, just my 2 cents - if I were as smart as you, and had the option -- I'd pay off the house, then go to the ROTH IRA after that was paid off...
    <FONT color="#000080">Good luck and God Bless...
    <FONT color="#000080">-Jamieson



 

 

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