Once I read MMM, my primary goal became pay down my student loan debt with my husband 100% on board.
The only thing is I recently started reading up on how if my interest % is below 4%, why not invest it. I don't know much about investing and I also would like to become a homeowner. I am close to paying off the remaining high interest loan I have by the end of this year, so I am trying to formulate a strategy for future monies. I am not perfect MMM (still impulse spending in reaction to stress). My husband does also want a car down the line b/c we are very limited sometimes w/o one.
Household of 3 - 2 FT working adults & 1 preschooler
Income (currently): $4830/mo (guaranteed)
Gross/week: $1720/week, $7453/mo
- Me: $870/week
- DH: $850/week
Net/week: $1115/week, $4830/mo
- Me: $550/week (tax deduction: 3)
- DH: $565/week (tax deduction: 0)
Current expenses: $4657/mo (not counting $1287/mo expenses b/c not part of take home pay how it's set up)
Student Loans: $2500/mo
Rent: $500/mo, living with my in laws, no utilities
Food: $790/mo (I got this # by averaging out monthly food & dining via Mint, large variation month to month.. Still work in progress having to do with our living situation and don't really want to get into particulars about this, but I still deserve face punching for this)
Monthly public transportation for both of us ~$192
Monthly Amazon s&s ~$50
Daughter expenses: A face punching $200/mo (I buy books, toys, clothes, food especially fresh strawberries. This will become higher when we start up daycare again)
Me: $50/mo (my skin care regimen, it is a luxury to some but a necessity to me as I struggled with skin problems and finally I am starting to be clear and I LOVE it, big boost to my confidence)
Gifts: $250/mo (In the annual picture, already spent $500 on my mother in law for mother's day and birthday, my daughter's annual birthday party and Christmas shopping included in this budget set as on monthly basis. This is considered a necessity to establish good will and maintain familial relations.)
Mobile Phone: $75/mo
Me – Republic Wireless <$15/mo
DH – Stuck on VZW plan with his friends, urging him to go RW asap once contract expires.
Rainy day fund: $50/mo
All the following expenses taken out of paycheck automatically: $1287/mo
Union Dues: $17/week x 2, approx. ~$148/mo
Medical (deducted from gross pre tax weekly): $74/week, approx ~$321/mo
Dental (see above, has $300 deductible that my husband winds up needing to pay every year): $3/week + annual deductible, approx ~$38/mo
ESPP Stock: $20/week, approx ~$87/mo
Vanguard (pre-tax): $160/week (both of us altogether), approx ~$693/mo
Assets: $24,900
Vanguard: $15,100
Me $9800 - with company matching and my contributions, I think growth has been about 8%/year
DH $5300 - started later than me but growth been about same too, maybe slightly more
ESPP: $2820
Me $1590
DH $1230
Lending Tree: $2080 (been doing it only for a few months now, <1 yr, and return has been calculated at about 18%? Got back $80+ so far on the principal $2000)
Rainy Day Fund: $600
Savings: $4300
Liabilities: No mortgage or car, only student loans that were originally $100k+, repayment started 2010, MMM initiation last year 2013
Student Loans: $2500/mo, applying the excess beyond min to loan 1 (should be paid off by end of this year)
Loan 1 $4,600 @ 5.88% for monthly min $287
Loan 2 36,700 @ 3.25% for monthly min $268
Net Value -$16,000 approximately
1. I am trying to save up a down payment for a house, 20% for what we are looking for seems to be at least $50k
2. I am also trying to build up retirement funds but wonder at what point should I try and divert funds in them
3. I have 2 loans and the high interest one is going to be paid off soon, my original plan was to also do the same thing to the low interest one b/c it's such a high figure. However, some people argue to just invest the funds that will earn 8% as that means will come out ahead.
Ultimately, what should I do after Loan 1 is paid in full? I have 3 goals and it's hard to do them all at once...
