Topic Title: 35 year old who grew up lower middle class and was raised in low spending home. Got a good job and started spending, married a doctor and started spending more. Had an epiphany, found Mr. Mustache and am looking for advice with an action plan.
Life Situation: Married. Me 35, Wife 35. No Kids, 2 dogs. Atlanta, GA.
Gross Salary/Wages: Me $90,000 Salary, Wife $250,000 salary.
Total Salary 340,000
Individual amounts of each Pre-tax deductions
My 401k- $127,000. I contribute 7% which is what company matches.
Wife 403b- 25,000. She contributes 3% to get company match.
Other Ordinary Income: no other source of income
Qualified Dividends & Long Term Capital Gains: none
Rental Income, Actual Expenses, and Depreciation: Rental property- receive $900 in rent. mortgage payment is $765 including taxes and insurance. Still owe $58,000 on this property
Current expenses: Primary home- Owe $394,000 on 30 year mortgage at 3.875%. 28 years remaining. 2500/month payment (P&I is $1960).
Wife Student loans- Owe $112,000. 30,000 at 6.5%(fixed) 82,000 at 3.1%(variable interest rate). $1,500/month minimum payment
Rental Property- Owe $58,000. Mortgage is $765
Expected ER expenses: (optional, if relevant)
Assets:
Cash-$50,000 ( $35,000 emergency savings, $15,000 in checking for regular expenses.)
Primary Home Est Value-$550,000
Rental home est value- $70,000
My 401k-$125,000
Her 403b-$25,000
Total-$820,000
Liabilities:
Primary Mortgage-$394,000 Original loan $417,000 3.875% 2+ years into a 30 year mortgage
Student Loan-$112,000 Not sure original loan. Was $155,000 when we started paying 2 years ago after 7 years of deferral through residency and fellowship. $30,000 at 6.5% $82,000 at 3.1% (variable rate- just went up from 2.85 to 3.10)
Rental Home-$58,000 Original loan $120,000 at 6.8% for 30 years. 12 years in.
401K loan-$15,500 at 3.25% for 5 years. Original loan 30,000 for down payment on primary house. 2.5 years into loan.
Total $579,500
Total Assets $820,000
Total Liabilities $579,500
Net Worth $240,500
Specific Question(s): I am looking for guidance on strategy. Right now my plan is to pay off the $30,000 6.5% student loan first. This will take 5-6 months. I feel like that is a no brainer (please correct me if im wrong!). After that I am not sure. Should we keep attacking the lower interest student loans? the rental property? the 401k loan? Max out retirement accounts? start investing? a combination of things? Any advice would be greatly appreciated to someone who is attempting to get the 'stache going.