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Aug. 8th, 2010 @ 04:07 pm baby_poor
Apologies if it's not okay to post this here, but I didn't see any rules against it.

Given recent developments in the life of friends and family members, I was inspired to start a community specifically for low income single parents.  It's called [info]baby_poor .  It has a financial aspect like poor skills, but there's also room for general parenting discussion and advice.

Just so not too off topic, I've got a little victory to share.  As of last month I finished Baby Step #3, and now have a $5000 EF.  I'm planning to trickle $5/month into that for time being, since it wouldn't take much for my monthly expenses to go up.

However I'm now having to put some serious thought into step #4.  I'm self-employed for all practical purposes, which makes starting a retirement fund tricky.  Find me a good fund that'll let you get in for $150, and I'll give you a gold star.

Another thing that's slowing up step 4 is that my car unexpectedly died.  While it's not urgent that I get a new one, it is something I need to start saving for.

My take home income is $720.90 each month.  My fixed expenses are $367, and I would strongly prefer to keep $100 for spending (entertainment / gifts / personal products).  I also tithe $72.10.  Which leaves me with $181.80 for savings.

My gross income is $1000, out of which taxes and health insurance come (including HSA contributions).  If I do Ramsey's 15%, that'll only leave me with $31/mo. to save for a car.  Getting another job isn't an option right now (no time and no transportation, and the business does have the potential to earn more later, so I'm not ready to throw in the towel).  How would advise splitting up my savings?

P.S. I'm 29 for whatever difference that makes.
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Living on Minimum Wage
minimumwager:
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From:tzigana
Date:November 9th, 2010 10:49 pm (UTC)
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Better late than never. . .

If your willing to wait abit to open it up, I would save for retirement for a few years in cd's, and then open a mutual fund once you have enough for the first time minimum. I think Vanguard has some where the minimum is 3000, I'm not sure about the others. Once you have it opened you can add to it with less.

Would you be able to make do with 81.80 for spending? Then you could split the rest at 100 for a car and 100 for retirement.
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From:minimumwager
Date:November 10th, 2010 02:26 pm (UTC)
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After I posted this I discovered that I could start out by funding an IRA with a money market (or CDs)...I wish financial people would talk about that option more often. I could have gotten started years earlier if I'd been aware of it.

Unfortunately right now my business has taken a hit, so the question's moot until things pick up again. I'm still determined to start a Roth IRA at the end of the year. It may be a very small intitial contribution, but I do want to at least get started.