Next month, my husband will turn 30, and my biological clock is beginning to kick in. Suddenly, it seems like a good idea to stop the party and set some financial goals.
Would you help us set a mustachian budget so that we can Adult in the next five years?
We have $1,000 in savings. My husband has substantial student loan debt. Together, our income (before taxes) is $72,000 a year.
The student loan debt is comprised of four private loans, totaling at about $60,000, each borrowed at 4%. The minimum monthly payments on all four loans is $469.
We own outright two vehicles: a 2002 Honda Civic Si two-door hatchback with 100,000 miles on it, and a very well loved (read: no market value) 2005 Suzuki Aerio four-door hatchback with over 200,000 miles. Our cars are garaged in a parking deck ($100/ mo.), as street parking is inadvisable due to the risk of theft and parking tickets downtown.
We rent a cheap and energy efficient apartment downtown ($680/ mo.rent; $75/ mo. utilities), and both walk to work. Almost everything we do, we do in our neighborhood, so we rarely drive.
We indulge in several luxuries which we are loath to give up, among them:
daily NYT newspaper delivery ($67/ mo.)
high-speed internet access ($74.44/ mo.)
season tickets to our local third-tier soccer club ($15/ mo.)
art classes ($50/ mo.)
membership at the YMCA ($89/ mo.)
indoor soccer team membership ($20/ mo.)
a very silly dog ($70/ mo.)
bi-weekly drinks at the neighborhood pub, where everyone knows our names and our drinks are usually discounted by friendly bar-backs ($200/ mo.)
weekend road trips ($200/ mo.)
Other monthly expenses:
Vision Insurance ($6.96/ mo.)
Dental Insurance ($22.28/ mo.)
Health Insurance ($202/ mo.)
Life Insurance ($16.50/ mo.)
Netflix ($8/ mo.)
Cell Phone ($70/ mo.)
Groceries ($200/ mo.)
Gas ($50/ mo.)
Car Insurance ($83/ mo.)
Car Maintenance ($66/ mo.)
401K deposits ($308/ mo.)
Will we ever be able to afford to save a down payment on a house?
We made a budget document that includes our current budget and two different approaches to austerity cuts. E-mail me if you would like to look at them.
Follow-up question: We are having a debate about how we could best use our hypothetical austerity savings. What would be the most badassity, mustachian use of our savings?
1. Pay off husband's student loan debt ASAP (it was accrued before we started dating)
2. Put a down-payment on a home
3. Take out a business loan and purchase an investor property to rent out, while remaining renters ourselves
EDIT: Requested info
Income:
me: C-3/ C-4 National Nonprofit 37,000/ yr.
Husband: local government 35,000/ yr.
Current expenses:
Luxury:
daily NYT newspaper delivery ($67/ mo.)
high-speed internet access ($74.44/ mo.)
season tickets to our local third-tier soccer club ($15/ mo.)
art classes ($50/ mo.)
membership at the YMCA ($89/ mo.)
indoor soccer team membership ($20/ mo.)
a very silly dog ($70/ mo.)
bi-weekly drinks at the neighborhood pub, where everyone knows our names and our drinks are usually discounted by friendly bar-backs ($200/ mo.)
weekend road trips ($200/ mo.)
Necessary:
Rent ($680/ mo.)
Utilities ($75/ mo.)
Cars Garaged ($100/ mo.)
Vision Insurance ($6.96/ mo.)
Dental Insurance ($22.28/ mo.)
Health Insurance ($202/ mo.)
Life Insurance ($16.50/ mo.)
Netflix ($8/ mo.)
Cell Phone ($70/ mo.)
Groceries ($200/ mo.)
Gas ($50/ mo.)
Car Insurance ($83/ mo.)
Car Maintenance ($66/ mo.)
401K deposits ($308/ mo.)
TOTAL: $4,487.74/ mo.
Expected ER expenses: n/a
Assets: $1,000 savings
Liabilities:
The student loan debt is comprised of four private loans, totaling at about $60,000, each borrowed at 4%. The minimum monthly payments on all four loans is $469.
Specific Question(s):
How long should it take to save a down payment on a house? How can we do it faster?
Follow-up question: We are having a debate about how we could best use our hypothetical savings. What would be the most badassity, mustachian use of our savings?
1. Pay off husband's student loan debt ASAP (it was accrued before we started dating)
2. Put a down-payment on a home
3. Take out a business loan and purchase an investor property to rent out, while remaining renters ourselves