Trying to retire early, sit on a rocking chair on my porch, and have enough plants to make the neighborhood kids think I am a Witch. Critique my plan?
Hello. New profile made just to make this post— been lurking for a while now and have really learned a lot through this community: r/personalfinance. I’ve actually been doing some of the things highlighted here already— but I thought I needed a solid plan to really follow.
25/F. LCOL. 5 years ago, had no job. Was in school for nursing and lived with my wonderful mom. – Graduated three years ago became an RN, first job ever! – Bought a 2014 Nissan Sentra (paid off). – Paid off student loans, total of $13,250 (always maxed out my student loans to give the extra money to my mom). – Bought a house 4 months ago, valued at $84,500, still owe $66,000.
The other people in my family are not… very good with money but a very good friend of mine has helped me with financial decisions and has helped me gain some financial stability. Also, due to my family not being very good with money, I had family members borrow money from me (even as a young child), manipulated me to get money, and never paid me back (good note: those family members I have not dealt with anymore).
Due to all that I became very, very stingy and grew up feeling like I couldn’t spend a single cent for myself and would have to give the money up to some uncle or aunt or whoever else needed help. I am doing better now though and have been able to invest in both my future and myself.
So I would really like to continue this journey and commit to creating a better financial future for myself, my family, and my own future family (whether it be an actual partner and our child, an adopted child, or fur babies).
On to the details! And excuse me if I use certain terms or phrases incorrectly! Still new to to FIRE world and also, English is not my first language! I would greatly appreciate any corrections too!
ASSETS: – $84,500 house – 2014 Nissan Sentra w/ 58,000 miles- valued at $5-6,000 on the blue book. – $30,000 in savings (10,000 is my Emergency Fund). – 20,000 in my 401K.
I have also just recently put my notice in and am woking on getting a job that will pay more. So I will have more money to invest.
MONTHLY EXPENSES: – $530 – MORTGAGE Question: would it be better to pay that amount or to increase and pay $600 monthly? – $70- COMCAST (it was a promo). – $150- UTILITIES (a modest calculation, just got the home learning NEST thermostat, hoping it will help with the bill!) – $103 – CAR INSURANCE (new and cheaper than old one.) – $74- LIFE INSURANCE (new, not with work, will pay out 500,000 at death or age of 100, whichever comes first). – $50- COUNSELING (something that I have gotten into to help with stress from work and family. Cannot let myself stop this because it has helped me a lot, and I highly recommend it to anyone.) – $150- GROCERIES (mostly rice, beans, meat, and some snacks. Health, I think is a good investment because hospital bills are ridiculous, saying that as both a nurse and a patient.) – $100 – TRANSPORTATION (mostly gas, what else should I include?) – $80 – MARTIAL ARTS/WORKOUT CLASSES – $100 – DONATIONS
Okay. So, details in. Right now I make an average of $3,200 monthly WITH overtime. Working hard to the point that I get sick and exhausted. July is my last month. I am planning on becoming a traveling nurse and expect to make at least $1,200 weekly, total of $4,800 monthly. This job change should increase my expense only with Hotel night stays at decent hotels, either 3-4 nights and more gas usage. I hope my post isn’t all over the place!
So my questions are: 1. Should I roll over my 401K to a ROTH IRA?
The company I will be working with during traveling has a 401K, but I won’t be able to sign up until after 6 months, and then I am 100% vested right away. They do 100% match up to 3% and 50% match for 4%! — Does 100% vested right away mean that I IMMEDIATELY get whatever they match? — And how much of my paycheck should I put in? The 3% or 4%? The place I currently work at matches 25% of the 6%, and I have been putting in 10%.
Many people have suggested Fidelity or Vanguard or Schwab for investments? Unfortunately, I have a hard time understanding some of the risks. Is this a once a year contribution and just let it grow?
Should I get an HSA? Or is there another alternative? I currently have health insurance with the place I work at, and I am planning on switching to Anthem, the one that is provided by the company taking care of my home, auto, and life insurance. — if I get health insurance from them too, do you think I can haggle cheaper prices in all as well?
Would it be better to buy new furniture with full payment for the new house or to do payment plans?
How do I calculate how much money I need for retirement?
And… I think that is all I have for now! Thank you all so much for your help! Any suggestions/recommendations are very much appreciated!
- I currently have two credit cards. One in a local credit union and one with Wells Fargo. Would it be a good idea to get another one? Or not?