I had some fantastic responses from my question about which debt to tackle next. The overwhelming response was the higher interest student loan debt.
After the credit card debt is gone
And after I do my happy dance (which will be embarrassing, for sure)
I will tackle the student loan.
Which means, according to the snowball, that the $450 I was putting toward my debt each month will go into my student loan.
But now I have another question.
What about retirement?
I love what I do for a living, but (and there’s always a but!) there are no benefits. So, I contribute to a Traditional IRA, which has less money in it than it should. A lot less.
I’ve never maxed out. I have $200 a month taken out automatically (hooray for paying myself first!) right after my paycheck goes in.
At some point I should have another IRA (maybe a Roth, just to switch things up) but I definitely think I need to contribute $5K to my IRA this year.
Fidelity just sent me an email detailing the glories of compound interest.
400×12=$4800, so increasing my automatic contribution from 200 to 400 would get me mostly there.
Now, what to prioritize? And how to do it? Do I split the $450 that isn’t going toward credit card evenly between Fidelity and student loan? Do I put the IRA at a higher priority than the loan?
Questions beget questions, right?