Are we doing it right?

[porkpistol]

I just opened our first online savings account for our emergency fund at Ally. I wanted the money away and not readily accessible. It was previously in our savings at our credit union. I found taking money out of it to be too easy. My wife and I have $2000 in this account and will be adding $400 a month to it. We have a credit card with a 10k limit with no balance for emergencies. I have been reading on here about i bonds and cd's. We have our emergency fund, our checking account we pay bills out of and the CC for an emergency our savings can't cover. Is there anything else we should be doing? Different savings accounts for different things or any other suggestions? Our take home income is $3200 per month. Our bills total $1500. Mortgage and a personal loan that will be payed off in less than a year are our only debts.

[autoxer]

Retirement savings? IRA? Taxable Brokerage account? What other goals do you have?

[humandraydel]

What about planned large expenses? House/car maintenance, car fund if you need a new car in 3 years, etc. A lot of people do open separate accounts for these things, but others just throw all savings in 1 account and keep track mentally.

[porkpistol]

Retirement savings? IRA? Taxable Brokerage account? What other goals do you have?

I contribute to a 401k I would have to get a statement but I think it currently is at 30k. My wife contributes to a 403b, I think hers is around the same. I don't know much about the other two or what they even are. I am 27 she is 24.

[porkpistol]

What about planned large expenses? House/car maintenance, car fund if you need a new car in 3 years, etc. A lot of people do open separate accounts for these things, but others just throw all savings in 1 account and keep track mentally.

I guess that will be coming out of the emergency fund. Once we are able to contribute a lot more to the savings I could open seperate accounts for that. Should only be a month or two, my wife will be transferring positions within her company and we will be bringing home about $300 a month.

[autoxer]

I contribute to a 401k I would have to get a statement but I think it currently is at 30k. My wife contributes to a 403b, I think hers is around the same. I don't know much about the other two or what they even are. I am 27 she is 24.

You are off to a great start! Keep your expenses low and your savings rate high.

Once you have the debts paid off, it would be wise to increase your contribution to the 401k/403b accounts, to reduce your taxes.

Also, periodically (yearly, quarterly, or monthly...) you should calculate your net worth, so you know where you stand.

[bjl584]

I just opened our first online savings account for our emergency fund at Ally. I wanted the money away and not readily accessible. It was previously in our savings at our credit union. I found taking money out of it to be too easy. My wife and I have $2000 in this account and will be adding $400 a month to it. We have a credit card with a 10k limit with no balance for emergencies. I have been reading on here about i bonds and cd's. We have our emergency fund, our checking account we pay bills out of and the CC for an emergency our savings can't cover. Is there anything else we should be doing? Different savings accounts for different things or any other suggestions? Our take home income is $3200 per month. Our bills total $1500. Mortgage and a personal loan that will be payed off in less than a year are our only debts.

One thing that stands out to me is that you say that you have a credit card for emergencies. I'd advise not to have a mindset to finance your way out of trouble. Strive to save up enough of an emergency fund that you won't have to rely on a credit card for an emergency.

[porkpistol]

You are off to a great start! Keep your expenses low and your savings rate high.

Once you have the debts paid off, it would be wise to increase your contribution to the 401k/403b accounts, to reduce your taxes.

Also, periodically (yearly, quarterly, or monthly...) you should calculate your net worth, so you know where you stand.

Thanks! We are going to try and double pay on our personal loan. It is due to be payed off next year in April. Shooting for the next 6-7mths instead. That way we can contribute an extra $337 to savings a month or distribute it to other places.

[snafu]

Please examine your retirement plan's statement or get in touch with the custodian to find out what specific investments you hold, how much your are paying in fees, what your are paying for management expense sometimes called MER [Management Expense Ratio] and allocation. If you're willing to list the names, several SA participants are very knowledgeable and can offer suggestions for you to consider.