In the last post, I talked about my retirement accounts, which I KNOW is a weak spot, but am not sure what to do about it. Now, I'll go over other areas where I think I'm lacking security or want to upgrade my lifestyle. This is the post where I really want feedback!
For reference, most months I make ~$3,268 (2 paychecks), so I work off of that figure for my budget. My total budgeted expenses total $2,735, or 84% of my take home. Included in that budgeted expense total is the $415 a month (13% of my take home pay) that I save towards my long-term savings goals. I have ~$28K saved to my EF and short-term funds to be spent in the next 5 years. I save roughly 15% of my take home pay to long-term savings, like retirement, in which I have $11K USD at 32 years old. I am not eligible to contribute to US retirement funds, and NZ retirement funds are not cost-effective. I'm interested in what I should do with the extra $530+, or 16%+ of my take home every month, as I've met my 2011 goals already & contributing to retirement is not an option. I'm taking suggestions!
Incidentals:
You may have noticed that my budget didn't include insurance. That's because I don't have any! I am a resident of New Zealand, and we're entitled to healthcare. Woo hoo! It is fabulous. I do budget about $65 a month for dental visits, optometry visits, and to pay the $17 appointment fee. I go to the doctor about twice a year, plus the dentist and the eye doc. Prescriptions are usually $5 or less. I don't take any pills currently, but I do get treated for eczema and buy contact lenses and new glasses every once in a while. My fingers are crossed for universal healthcare before I get back to the States...
Other insurances: I have absolutely none. Notably missing are the bigguns:
- renter's insurance
- short term disability insurance
- long term disability insurance
- ?? long term care insurance?
- life insurance
To be honest, I know that these are important, but every time I look into, say, renter's insurance, it doesn't seem worth it to buy it. I could replace my stuff for the annual cost of renter's insurance! It helps that I don't own much--my landlord provided everything in our apartment, down to the cleaning supplies--and half of my belongings are still in the US. Really all I would need to buy is a replacement laptop and a few changes of clothes, and I'd be set. I already have a fund for the replacement laptop, too.
Long-term disability insurance...do they even have that here in NZ? Could I buy a policy in the US? If I did, would it cover me in NZ? If I bought a policy in NZ, would it cover me in the US? Because I'd most likely move back home if something awful happened. I am a bit confused about what is legal/necessary. I don't have any dependents, either, so life insurance probably isn't necessary, although I'd like to leave my mom with a bit of money if something happened to me.
I need help here! What do you have, and where do you have coverage?
Are there any other holes you see? The next post will detail my future plans and goals, and where I eventually want to end up. Maybe that will illuminate my financial picture enough to reveal more holes.
3 comments:
Call me reckless, but I don't see the point in bothering with further insurance until you get back to the US.
Interesting! Well, I think having the insurance would make me feel better. If something goes down, I'm moving back to the States to be near my family (eg, live rent-free and have a support system in palce), and Lord knows I won't be able to get insurance there! One of my greatest fears is that I'll get sick here and not be able to get health insurance--at any cost--when I move back to the US. or that I won't be able to work and will be poor the rest of my life because of it. basically, i'm afraid of making the same mistakes my parents did...i see insurance as a way out.
*in PLACE*
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