Yesterday was a BIG day of celebrations in my home. I was able to invest more into my family's future.
When I met my ex husband, I was a teenager, working full time after school as an optician's assistant, with a paid for junker car, money in the bank, Roth IRAs and thought I would die of embarrassment if I were to over draw my checking account. After a year of dating, I suggested that we invest together, which worked out for a couple months and dropped off when we got pregnant and started planning our future life together. Within our first year of marriage we were practically living in the red. I was horrified, but we had a new baby to feed. We cashed in all the investments to keep us afloat during those hard years until eventually, our
 |
| My firstborn baby, StigKidC |
camera gear became the only assets we owned.
I was a doormat wife. I tried talking to my husband about smart choices with our money, but I knew that it was him bringing in the income and he, as the leader of our home, who got to make the decision in the end. I can't tell you how many times in the tens years of our marriage that we went in the hole because he prioritized his wants over the needs of our family. In the later years of our marriage, I had given up trying to discuss finances, beyond telling him how much we needed for groceries. I started becoming jealous that he was out having a good time, while the kids and I were dressed in hand me downs. So I went out and started spending too. That isn't the best idea, I
don't advise that. Eventually I started working more, earning my own income to do with as I pleased (much better idea). At this point in my marriage I knew I was ready for a divorce, but I was bitter and damn sure wanted HIM to pay for it, because in my mind, I had paid many times over. I was still spending. I got my hair done for the first time in two years, I took a vacation, I bought new clothes and shoes for the kids and I. I was living for the first time... but I still regret not investing or saving more.
Now, I've met this awesome guy who got into debt in his first marriage and is working with "gazelle intensity" to pay it all off within 2 years. Just being on the same page about finances motivated me to get my personal finances on track. Of course, I have savings accounts for myself and my children. Last month Justin and I saved up a joint emergency fund, I'm bringing in a profit from my multimedia business and making additional money by selling unwanted items and... my tax refund has arrived.
Let me just preface this by reiterating; Justin and I budget every penny BEFORE it arrives in our bank accounts. We list out our bills, including gas, groceries, a small amount of fun money and anything that's left over gets divided up into Savings, Tithe and paying off debt. (Honestly, We aren't quite doing this right, tithe and savings should be the first 10% (each) of the income, not just what's leftover, but I know we'll get there). So, of course, we had planned out what to do with my tax return well before we got it. The breakdown is below.
I buy my insurance and do most of my banking through USAA. They are an amazing company to do business with, I just LOVE them! I know USAA offers free financial advice so J and I called them up to answer questions and help us invest for my children's college. My financial adviser, Tawnya, also asked me if I had thought about investing in my own retirement and investing in life insurance. Now, I'm a skeptical girl. For a month I worked to get a job with a life insurance company just to turn down the job in the end because I believed they were more in the business of scamming people instead of helping. However, Listening to Dave Ramsey, I am also under the belief that when researching policies I should make sure to seek Term-Life insurance. [To learn more about Life insurance, check out cswsiggy.blogspot.com]
I lost my life insurance coverage and split retirement benefits in the divorce. I was in need of a new policy, and this time, one that I was in control of.. what I didn't know was J was also in the market for additional coverage. We both got pre-screened, appointment set for medical exams, and quotes for 30 year, Term policies.
Next up was investing in my retirement account. Having invested before, my adviser and I discussed low. moderate and high risk portfolios. I was seeking investments in which I could continually make contributions throughout the year. I eventually ended up choosing the Cornerstone Moderate Fund. The fund has about a 50% equity security/50% fixed income security target asset class allocation... basically, half stocks, half
 |
| Cornerstone Mutual Fund History |
bonds. I can actively track my investments and (of course) I get quarterly statements. $1000 bought me 66 units and has a steady monthly rate of return.
Finally, my adviser and I got to the most important investments to me, my children's college funds. To my knowledge, no one ever saved for me to go to college. It was a struggle just to put food on the table. My parents told me that if I wanted to go to college, I'd have to get there on a scholarship. I went to an extremely competitive high school and I knew that even though I was an honor roll student, I didn't have the extra curricular activities and foreign languages required for traditional four year colleges. I had no idea about federal grants until a week before I gave birth to my oldest child. Ever since then, I've been making my way through higher education and it's important to me to help my children make their way through college as well. I am a moderate risk kind of person and I again chose a moderate risk, 529 investment plan for the children. StigKidC will be ten this year, which means he has about 8 years until college with only a small savings to his name. I decided to invest double the amount into his account than I did my girls since I have a little more time to invest in their funds.
The next financial goals are beefing up our emergency fund, saving for a house and adding legacy funds to my estate for all seven of our kiddos.
Cheers to me, for being in financial control of my future and many more wise decisions to come!
