Thursday, January 3, 2008

Happy New Year!!

Wow, I can't believe it is 2008 already! Seems like I was just thinking that I couldn't believe it was 2007! Yikes! It's true what they say, time really does go faster the older we get!

Well, I am off to a great start for 2008, I haven't spent any money at all over the past 6 days! I'm pretty sure I can make it through tomorrow without spending any either. I have been giving some thought to my 2008 goals and I know I want to pay down my mortgage to get rid of the PMI, but I have a question for you all. The PMI portion of my mortgage is only $57.73month which is great, I'm happy that it is so little. I also want to max out my Roth IRA and bring my cash savings up to at least $10,000. I am thinking about putting a little bit of a hold on paying down the mortgage so aggressively in favor of maxing out my retirement first. What do you all think? I have been putting an extra $400-500/month on my mortgage, but am thinking I would like to max out the Roth first, bring my cash savings up, then focus more on paying down the mortgage so aggressively. Any thoughts would be greatly appreciated.

Happy 2008!


Sense to Dollars said...

Sure! that sounds like a great plan--esp. if the interest rate on the PMI is less than what you'll PROBABLY make in your retirement funds (<8%-ish?). seems like a good way to go to me.

Escape Brooklyn said...

Happy New Year! Yes, I would definitely prioritize your retirement savings over pre-paying your mortgage. You can deduct the mortgage interest, which makes that debt even cheaper, plus your retirement savings will then have even more time to compound!