Nearly broke with a negative net worth couple needs to start slashing debt now

[Self-employed-swami]

http://business.financialpost.com/2014/02/28/family-finance-friday-debt/

[Eric]

From the comments:

Mike McGinnis • 7 hours ago

Not sure why a couple just hitting 40 should be in an article like this. They are nowhere near retirement age.

Poor Mike.  If only he knew....

[Khao]

Even without thiniing about early retirement, that comment is so full of ignorance. Even if your normal retirement age is 65, if you haven't started thinking about it when you hit 40 you're in for a surprise. You don't plan retirement 2 years before it's time.

[gooki]

Why am I not surprised to see the answer is to work until they are 70.

[BlueMR2]

Why am I not surprised to see the answer is to work until they are 70.

That makes me laugh.  Working until 70 isn't even going to be an option for most people.  With whole classes of work disappearing, the high cost of retraining, and the fact that it's nearly impossible for anyone 50+ to even get hired at something they already know, better get that retirement package all setup WELL before 70!

[MrsPete]

Why am I not surprised to see the answer is to work until they are 70.

That makes me laugh.  Working until 70 isn't even going to be an option for most people.  With whole classes of work disappearing, the high cost of retraining, and the fact that it's nearly impossible for anyone 50+ to even get hired at something they already know, better get that retirement package all setup WELL before 70!

In general, I don't disagree with you, but the guy in this article is a doctor.  His job isn't likely to change or become less valued.  I think he's an exception to this rule. 

No, their problems are that they got a late start, he didn't start med school 'til 34, he owes something like $145,000, and his wife's job is about to end.  If he lives moderately, he will be okay. 

[MgoSam]

From "The Millionaire next door" Dr. Stanley refers to doctors and lawyers as being very high consumers, so this doesn't suprise me. I am hopeful that they get their financial house in order.

[TinyLightsBelow]

How the hell does this family spend $1000 on groceries and an additional $400 on restaurants? My partner and I eat luxuriously (eating out once every 2 weeks or so, buying groceries from Whole Foods) for $250/mo.

[Self-employed-swami]

We are at about $100-120/week for food, if I'm not watching sales all that closely, or if my husband is doing the shopping (shops without a list usually).

[soccerluvof4]

7$ for a gallon of milk...YIkes! we are a family of 6 and eat very well on now 180$ a week. Cut in half in the last year and a half just by being smarter.

[Angelfishtitan]

To avoid high ratio loan interest premiums, the couple’s parents might to help with the down payment.

Why is this even an option when it is assumed he will be making $144K take home in short order? I just found this to be one of the more laugable portions of the article, but hardly the only one.

Was is the option for the wife just to work for the firm to lower his tax rate? (regardless of the legitamacy fo the position). Shouldn't she find another consulting job valued at $20K after taxes? Otherwise that's $750/month in childcare they are no longer paying (also, $750/month for childcare of kids that are in day school, WTH?).

Ultimately though there is only so seriously I can take an article that states "their budget is strapped just to pay $1,475 monthly rent, to keep their 15-year old subcompact car running and to provide day care while Kayla is at work" when there is $1400/month in clothing, travel, restaurants, and "misc" two inches from the paragraph.

Problem: Family living on experienced physician budget without experienced physician wages.
Solution: Don't write checks your ass can't cash.

[Eric]

7$ for a gallon of milk...YIkes!

That's over half off from where I shop!

https://forum.mrmoneymustache.com/antimustachian-wall-of-shame-and-comedy/a-gallon-of-milk/

[Self-employed-swami]

I avoid that whole issue about what is in milk, by just not drinking it.

Also, in Canada, we don't have hormones in our milk the same way you do, in the US.