I figured I should do a more specific plan for the rest of 2011 with dates and numbers. Of course things could happen like extra expenses, but as far as I can see things today, by the end of the year I could have $6,000 liquid cash in the bank and a fully funded IRA! Now that the second mortgage is paid, and it looks like the medical bills have slowed down, I'm hoping all our expenses can be paid with just my husband's income so all my income can be used for saving and investing. I want to fund the Roth IRA ASAP, but I also want to re-build our cash reserves. So I'm kind of splitting my income between the two for the next four months.
My plan for fully funding my Roth IRA for 2011 looks like this:
$800 already invested
$600 on July 1
$1200 on August 1
$1200 on September 1
$1200 on October 1
Now that the mortgage and this month's large credit card is paid off, I started right about $0 in liquid cash savings at the beginning of June. I still have the $3,500 in CD's that I ended up not using to pay off the mortgage - I just couldn't bring myself to be that risky! But my plan is to never touch those unless it's a true emergency. So as far as liquid cash that I can take out at any time, I'm starting from scratch. I make around $1,772 a month, I'll round down to $1,700 to account for a little bit of spending money. In the next four months will be investing the majority of my income in my IRA. So, here is the projected left over cash to start pre-funding the credit card and for the $1,000 rainy day fund.
July 1: $1100 ($1700 - $600)
August 1: $500 ($1700 - $1200) = $1600 total
September 1: $500 ($1700 - $1200) = $2100 total
October 1: $500 ($1700 - $1200) = $2600 total
November 1: $1700 = $4,300 total
December 1: $1700 = $6,000 total
Total cash savings I should have as of December 1: $6,000.