These new financial topics (retirement, IRAs, saving methods, credit scores) are like testing the waters at first, but before you know it, you're pushed into the pool of information. It's a bit too much! So much in fact, that I've totally forgotten that I wanted to share what I learned from reading "I'll Teach You To Be Rich" by Ramit Sethi.
-I don't have a spending problem. Hurray~
-I don't have any more credit card debt
-I am paying debt pretty aggressively
-I do have student loans with high balances
-Ding in my credit from over 5 years ago. Suck-y.
-I fear automatizing my finances as I don't trust things to go as planned. I guess I micromanage my own money too much.
What I learned that is useful to me:
-You can switch credit cards within the same company without it affecting your credit score instead of closing/opening credit cards, which does. (I may switch my regular BoA card for their Cash Rewards card)
-If a company sponsored 401k plan doesn't do matching contributions, don't contribute and pay debt instead.
-Open a Roth IRA. Contribute to the Roth IRA instead of non-matching 401k.
-Value vs cost (frugal vs cheap). As always, continue to look at purchases not in terms of cost but in terms of what's it worth to you.
-Ask for much higher credit card limits. I am scared of more credit, as I'm not sure if I may be tempted to mess up. And if I were to mess up, I'd be completely mortified and would vanquish myself from society in shame. Risks > Rewards.
Things to do:
-Switch BoA card to a rewards oriented card
-Call both credit cards and lower APRs, increase limit on BoA (would they need to check my credit score again for that?)
-Increase tax withholding on both jobs
-Decrease 401k contribution at FT job to ___? (currently at 7%)
-Decrease 401k contribution at PT job to just matching limit (5%, from 13%)
-Open Roth IRA and set up automatic transfers
-Automatize my budget... sometime before December. It's a huge, huge project, but I think I can pull it off.
And that's all for now! Once again, thanks for the recommendations. I'll be looking at some of the other books as my budget allows. Have a wonderful Saturday!