Wednesday, June 11, 2014

Togetherness - Finances

Over the past month or so I've been thinking a lot about money. I have several goals that I want to meet -

Things I already do
- Save 15% of my monthly check toward retirement
- Save toward an emergency fund

Things I need to do
- Build an emergency fund that is at least 6 months of salary set aside -- I've got about 4 months there
- Put money toward the house (patio)

I guess I'm easily swayed, or pressured. One thing that would be nice is to have a rental house, but do I need it? No. My parents keep saying I need to buy a house, but I have a house, I have a partner, and we are happy where we are at. I have been having the realization that I don't need to please anyone - my parents can talk, and tell me what I need to do, but that doesn't work for me right now. Right now my priority is the patio and doing what I need to do for us to live comfortably - or at least contribute my part -- and on our cruise this week this is something I plan to bring up to my mother and father. It is not going to be an easy conversation, but I feel that is really holding me back right now.

1 comment:

fan of casey said...

A rental property is a good long term goal, when you can afford it. At this point, building your emergency fund and stocking away money in retirement is the best use of your excess cash. You want to start early investing in retirement so it has a longer time to accumulate earning, dividends and capital gains.

When you are ready, you should buy a rental property together with your partner, not by yourself. Start small. something manageable. Also remember, rentals are not without risk. Get a lousy tenant and you will have endless headaches.

You have to find the right balance between having fun now and saving for the future.

I've read a number of stories where gay couples are just so focused on immediate gratification that when misfortune strikes, they are have little to fall back on. Obviously not all gay couples do this, but it's just a reminder that as a couple, you have to plan for the unknown.

You should have some life insurance, and of course medical insurance. Living wills also would be nice and powers of attorney drawn up. Lots of these benefits will also be automatic and tax free if you are legally married.