I’ve been writing here for almost 3 years and have already found a common thread in my money posts. That commonality is that I seem to change my financial priorities every few months, lol. I always knew that priorities change, but I didn’t understand how fast that happens. A year seems to fly by, but when I read back on what I’ve written about, a ton happens in each year. But we only seem to remember the super important stuff…the smaller things are forgotten and why time seems goes by so fast.
Since this is technically a personal finance site (not just my own personal venting grounds, lol), here is my current list of financial priorities and the thought process behind the choices:
- Friends and Family
- Our business
- Mortgage payoff
- Retirement savings and investments
- Hobby jobs
- Our homes
- Our other property/stuff
Why These are My Priorities
Friends and family were my easy #1 since my life is based on the people in it. Yay for easy! The second easy choice was our business since it is my addiction as well as our primary source of income. Double yay for easy! From there on, it became tougher to prioritize.
We have two mortgages, one for our rent house with about $23,000 left on it at 4.5% and one for our current home with about $206,000 left on it at 4%. The pure mortgage payments total $1500 since we don’t escrow, but we do have to put $1000 aside per month for all property taxes, home insurance premiums, and home owner’s association dues (so $2500 a month in housing costs). Since we bring in $2300 a month in rent, these housing costs aren’t killing us, but I really rather not have $2500 in just housing costs for the next 30 years. So we are placing paying off the first mortgage as#3 and will have that taken care of by the end of this year. $500 off our monthly housing costs will be really welcome.
Our retirement savings and investments are still super important to us and only ended up at #4 because #1 and #2 were so easy and #3 is short-term. We are still aiming to be financially independent within the next 20 years (no later than 50). Right now, fully funding our Roth IRA’s is a necessity for us. The steps after that are more vague for us. I’m loving rental income and hubby does very well with high yield dividend stocks. We’re not sure what else we’ll tackle.
The rest of our priorities are pretty much at the same level for us. Mr. BFS loves being a football and softball official. We love our home and our rent house. We also enjoy the other stuff we own like our cars, our furniture, our kitchen stuff, our gadgets, etc. Luckily, these priorities sort of take care of themselves. Since Mr. BFS does love reffing, he’s great at it and stays employed. Since we love our homes and like our stuff, we take care of it. It goes hand in hand.
So, what are your priorities? And on a different note, what would you do if you were self-employed to prepare yourself for retirement?