1) Pay off credit cards and debt to the electrician for the kitchen remodel.
2) Re-start automatic monthly deductions for Roth IRA ($355.75), Traditional IRA ($250.25), and Daughter's 529 College Savings Plan ($175.00).
Next 12 months: August 2006 - August 2007
1) Contribute $10,000 into my HSBC E-Fund. Comes out to $833.33 per month, $2499.99 every 3 months (or each commission check.)
2) Use credit cards wisely; Pay them off each month or don't use them at all. After all bills are paid and savings alloted, use the left over money for groceries and fun. Ok, really groceries are part of the bills; I mean the "extra" stuff that comes with going to the grocery store, like my snobby dark chocolate palate!
3) Continue to put the maximum allowed into our Roth IRA ($355.75/mth) and Traditional IRA ($250.25/mth).
4) Make sure that I'm putting the maximum into my 401(k) plan. This is confusing. For the last 2 years, I've received money back from my 401(k) contributions. Apparently, I'm a highly compensated employee, so I can only contribute a maximum of 10% of my salary into the plan. The company matches 3.5%. So, the law is that the plan needs to be fair for all employees from the janitor to the CEO. If the lower compensated employees don't utilize the plan to the highest extent then the higher compensated employees don't get to put as much in. Or something like that. Either way, I've put the max that I could put into the plan each year. Rather than overpay again this year, I decreased my contribution to try to even it out. I'm not so good at all of the math, so I'm hoping that it will work out.
5) Continue to contribute $175 per month into daughter's 529 plan
6) Pay down the $13,100 that I transferred over to the BoA credit card, 0%interest for 12 months. That's $1100 extra into my HSBC account on top of the e-fund savings.
7) Make as many extra payments as possible to our second mortgage on our Investment property. It's $20,000 at 7.5% interest. That interest rate is too high for me not to make this my priority after I pay off all of the credit cards and set up a small cushion in the e-fund.
Longer-Term Goals (within the next 5-10 years)
1) Save at least 2 years worth of mortgage payments for our primary residence. ~$70,000
2) Save ~$80,000 to purchase another property, remodel and resell.