| Action taken last month:
Upped the bi-monthly amount going into the ROTH IRA based on getting a more accurate estimate of my modified adjusted gross income after doing my taxes. I also added more to max out 2011 contributions, so that's a plus. I hate that I missed out contributing to a ROTH in all the years past (just didn't understand the importance of tax-free growth offered by the ROTH). Now I make too much to contribute the maximum, but I suppose that's a pretty good problem to have. Our company is getting ready to offer the ROTH 401(k) which has no income limits. I'll have to split the $17K max IRS contribution limit between the regular 401K and ROTH 401K, and that will mean paying taxes on part of that upfront, so there's a trade off. However, I think it's safe to say taxes will likely be higher by the time I retire, so I think it's a good opportunity to avoid some of that.
Have some 'fun' spending coming up -- a trip to LA in mid-April for the opening of my sister's play and another trip to Cali in June to be in one of my best friends' wedding. Looking forward to it, but I do hate to get off the voracious socking away of savings. However, one must learn to live a little too!!! Life is short!
To force discipline on myself and create 'an environment of austerity', I set up an automatic transfer directly from payroll to the emergency online savings account, shrinking the bi-weekly payroll deposit amount that goes into my checking/spending account. This method has certainly worked for me in the past (i.e. when debt snowballing), but I am definitely feeling the pinch; need to carefully stick to the budget which I am not that great at. However, this prevents me from saving only what is "left over" and allows the 6-months emergency savings to grow faster. I need to learn to live within the boundaries of the smaller paycheck OR earn more by another means.
Called BOA to see about any refinancing options for my first mortgage (fixed at 6.25%); since the house is seriously underwater, I did not have high hopes, but between all the programs and the new bank settlement, I wanted to see if I had a shot at lowering my interest rate to current market rates which would save me a bundle. After talking to 3 different departments, the bottom line is that my mortgage was sold to an investment bank/firm (presumably as a 'mortgage-backed security' who knows when), and it is unknown whether they will be participating in the settlement, and it is up to the investors to decide if they want to allow mortgage holders to refinance to current market rates. Pretty much sucks.
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Home value is updated monthly from Zillow.com/Zestimate
(Purchase price was $370K in August 2006).
Other Mortgage = HELOC/2nd Mortgage
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