miercuri, 2 februarie 2011

Getting Out of the Red

I have an idea for getting us out of the red but I don't know if this is the best approach. I'm thinking of doing things in this order:

  • Roll in closing cost with mortgage
  • Get refund of my $6,000 earnest deposit
  • Use $2,000 to complete e-fund
  • Use $4,000 to fully fund Roth
  • Pay off car faster using previous e-fund and Roth contributions
  • After car is paid off, max out 401k and invest
So that means increase 1 asset (e-fund), add 2 appreciating assets (house and Roth), add 1 liability (mortgage) that is offset by an appreciating asset and eliminate 1 liability (car loan). Hmmm...not bad. This allows me to potentially satisfy four of my goals for the year while eliminating debt associated with a depreciating *cough* asset.

These are just my ideas for now. I haven't evaluated the possible cons, which I know there are some. I have a few weeks to think about it and come up with a plan.

+ + + + + Net Worth here I come!!