How to prioritize savings / investments for low-income family?
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How do I prioritize investments for my family?
I am a stay-at-home mom and my husband is working part time while going to school. We paid off all our debt this year by staying with my folks and are now in a savings mode. We would like to buy a house eventually (probably when husband finishes school and gets a good job). Husband is using GI Bill so he will have no student loan debt. We are able to save some since we are not paying rent right now and use a budget. We have no car or cell phone payments or anything except one credit card we pay in full each month for other living expenses: food, gas, clothes, etc . Right now we have 3K in a CD that we're growing for an emergency fund. We also have a 529 for our child (birthday/holiday $ from relatives fund this). Things we need include health insurance, saving for a house, and retirement (Roth IRA?). We have about 2K to work with each month for all our expenses and savings. After a year, I will work part time again. Thanks.
How to prioritize savings / investments for low-income family?I'm not an expert, but it seems to me like the two biggies would be the health insurance (because if anything goes wrong that can set you back really fast) and the house (because eventually that will be a tax shelter for you). You might be able to combine this with your IRA savings - I think that there is a way for first time homebuyers to take money out of the IRA for a downpayment. So you'll be able to kill two birds with one stone.
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