Hello fellow Mustachians. I hope I can get some answers here because I am a little overwhelmed.
Here's whats going on:
For the very first time I have a fulltime job with a decent salary. But I have no savings at all and one student loan about $38.000 and 3 consumer loans approx. worth $2800 but
no interest on any of them! My student loan is due in 2038, so I have about 25 years to pay it off. Maybe a little more. Again no interest.
The consumer loans are also interest free. One of them will be paid off in April or May. The others are due in 2014. My girlfriend said that I am in no hurry to paying them off since they are without interest. I told her that I probably want to get rid of them as soon as possible. We have a new apartment without any furnitures, so we are going to need money to buy those.
Question #1: Who is right?My girlfriend will move in with me within the next 4 months. Depending on how fast she will find a new job here.
My current situation on a monthly basis:
Net income: $2300Expenses:
My rent: $760
Electricity: $60 (already calculated for 2 person household)
Internet: $25
Public transportation card: $95 (due Feb. 2014)
smartphone contract: $90 (due April 2014)
Food: $205
Consumer loans in total: $225
Spotify: $13
Razor blades: $8
Various errands: approx. $200
Going out: $150
Total of: $1830After reading MMM I started to develop ideas on how to cut my expenses and save more money. I decided as a first step to cancel my smartphone contract and the public transportation card. Which will save me about $180 per month. Sadly both contracts will continue until next year. As a replacement for my cell phone contract, I will negotiate a company phone with my boss, I think that won't be a problem. As for the public transportation, I will use a bike to get to work (but I need to buy one!).
I don't think there isn't much I can do about the costs of food and other errands. I have a very good food plan which guarantees no waste of any food, is healthy and affordable.
My appartement is quite small and me and my girlfriend will have to move to a bigger one sooner rather than later. But not in 2013, so moving isn't an option. My city is very expensive on rents and other living costs because the standards are very high. Electricity and internet provider are solid and there is not much I can do about the costs besides not wasting any energy for nothing.
Once the consumer loans are gone another $225 will be available.
That sums up to
$405 per month. All in 2014 though.
My girlfriend (and I) love checking out new places like restaurants, bars, etc. I am sure many of you do and I read also about what MMM did or would do. I realized for myself that I could do so much more with that time and would be saving some money when we don't eat at a restaurant. I will consider his and your advice for the future!
Question #2: How can we combine saving money and still having a good time on weekends when we want to go out?This post over here got me thinking...
http://www.mrmoneymustache.com/2011/05/05/get-rich-with-profitable-leisure-time/And I made up my own list:
1. Mountainbike riding on the hills of iceland
2. Riding a bike for exercise and fun with my girlfriend
3. Hiking in general
4. Go camping in the woods
5. Reading in a chilly corner of our living room
6. Cooking with my girlfriend
7. Go for a long run in the area
8. Go for a walk on a sunny sunday with my girlfriend
9. Developing a new skill
10. Having friends over and watch some good movies
11. Blogging about my favorite topics and stuff that i have on my mind
12. Exploring the new city
13. Learning spanish
14. Trailrunning at a beginner level on an awesome trail
15. Learning to dance Salza
Some of these will require no money at all or the money will be spent anyway like food, internet service etc.
For example: right now, I am improving my skills in HTML and CSS through tutorials on youtube and net.tuts. Since I have internet service anyway and the Macbook belongs to my company I am not spending anymore money to learn those new skills. Learning spanish through podcast and other internet resources also doesn't cost me more money than I am already paying.
Other activities like #1 will cost quite a bit. I don't have a bike at the moment but I desperately want one! I want a nice mountainbike like this
http://www.canyon.com/_en/mountainbikes/series/nerve-al.html. I would be able to cycle comfortable to work but also use it for trips in the woods, on the mountains and for long rides to the sea. In this price range it looks like the best choice. I live in Germany and bikes are very expensive from my point of view. This bike would cost about $1700. I will only consider a purchase when I have the cash and I will do some window shopping in the city and look for deals. I would take a older model of course, if the price is right. I don't want to buy a used one because you can't be sure what you're getting. It could have hidden damages that might cost me more than money.
Question #3: What should I do about a (new) bike?When my girlfriend and I live together we will combine our incomes. Rent etc will be splitted 50/50, so each of us should have more financial powers, shouldn't he?