Author Topic: Case Study: My Journey to SAHS (updated 05/19)  (Read 10950 times)

Easye418

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Case Study: My Journey to SAHS (updated 05/19)
« on: October 06, 2015, 01:55:05 PM »
*Update in newest reply at the bottom*

All,

Using this as a living journal that I can update as my family progresses towards Financial Independence, starting a family, and having my wife stay at home.  Let it be known, I am not a hardcore MMM, but looking for FI that allows my life to become less stressful.

Life Situation:

Age: 26 (both of us)
State:  Texas
IRS Filing: MFJ
Tax Bracket: 25% Fed, 0% State

Gross Salary/Wages:
$70,000 me
$47,000 her (1099 Emp)
$117,000 Salary

Pre-tax deductions:
15% 401k me + 3% emp match me
Healthcare = $300 a month (Both of us, Med,Vision,Dental)
$6,500  after tax and deductions.

Other Ordinary Income:
Side Income = $6000-$8000 (cash) once a year.  Not guarenteed every year.

Current expenses:
Gym: $20
Car Insurance: $143
ATT Internet and DirecTV: $100 (FP on TV)
ATT Cell: $150 for both ($70 back from my company) = $80
Utilities (G,E,W): $280 (estimate)
Student Loans: $191 me/ deferred payment for her
Food: $500 (includes dog food, $40 a month)
Gas: $200
Subtotal: $1,514

Mortgage:
P&I : $1520
Prop Taxes: $750
PMI: $162
Insurance: $131
Total: $2563

Expense Total Monthly: $4,077

Assets:
Home: ~$390k (could sell it for)
My Car (35k miles), paid off, Hyundai
Her car (110k miles), paid off, Chrysler POS
Misc assets, furniture, etc.  $XXk dollars.

Retirement Accounts:
$93k in Vanguard IRA
$3k in 401k (just began new job)

Liabilities:
Loan.....................Amount........Rate                             
Student Loan 1........$24,467.10...6.80%
Student Loan 2........$9,050.48.....5.16%
Student Loan 3........$23,587.86....~4%
Student Loan 4........$5,422.35......~3%

Mortgage:  $307k @  4.125%, 30 year fixed. (Bought Sept 2014)

Obvious flaws:
1.  Mortgage too expensive for one income; big part of it is PMI and Prop Taxes.
2.  DirecTV
3.  Cell Phones
4.  Food a bit high

What we are doing:
1.  Selling house in January 2016, with transaction costs and house improvements, capital gains will only run $3.5k, we will have net proceeds of $50k.  This will allow us to move closer to family, closer to my work (90 min commute each way), and drop the mortgage (especially from property taxes).
2.  Stock piling cash for the new house.  $2,400 a month goes into a savings account.  I don't want to have PMI on this next house.  I plan to have 6 months of this before I purchase a home = $14.4k.
3.  Side Income is coming in soon.  Should know where that number lies within two months.  Putting that towards house down payment fund.
4.  We think we have 16 months before said child would be born, so we have 18-24 months of her income.  She might work PRN that allows her to bring in some income after that.  Fingers cross, she finds a group of girls she really enjoys working with at a good hospital soon.
5.  With side stashed cash and side income, we hope to put down $70k plus on our next home.  Given the range of home we are looking at, this should easily be 20%+ down payment.  This should free up ~$500 cash flow a month on that alone.
6.  After house ordeal is finished, focus all income on Student Loans, plan to pay off $62k before baby is here.

Wild card
Wife is looking for new job, should bump her to $60k a year and I am on the cusp on a promotion, so I am working hard and paying my dues.  I have hopes of getting into the $80k's with a  bonus.  We will cross that bridge if/when it happens. 

If the wild card happens, we are going to be in beast mode aka destroy our debts/ build our savings.

Thanks for reading.

« Last Edit: May 29, 2019, 12:04:08 PM by Easye418 »

Bracken_Joy

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Re: Case Study: My Journey to SAHS
« Reply #1 on: October 06, 2015, 02:02:28 PM »
Well, it sounds like you have a good plan in place. I think the move and house change is your best bet- you're locked into a place right now where you won't be able to afford to have her stay home.

That 6.8% SL is pretty rough. Any thoughts on refinancing the loans? Keeping in mind that if they're federal, you won't qualify for income based repayment or anything once you've consolidated them. I seem to recall you mentioning your wife is a nurse elsewhere? When looking for a new job, see if she can negotiate loan repayment, or look into whether any of the hospitals in the area count as 'under-served' by the government- you can get loan elimination for these through Nurse Corps. If I remember right it was 25% loan elimination after 1 year, and another 33% after 3 years or something like that. Anyway, worth considering if most of the debt is hers.

Easye418

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Re: Case Study: My Journey to SAHS
« Reply #2 on: October 06, 2015, 02:19:53 PM »
Well, it sounds like you have a good plan in place. I think the move and house change is your best bet- you're locked into a place right now where you won't be able to afford to have her stay home.

That 6.8% SL is pretty rough. Any thoughts on refinancing the loans? Keeping in mind that if they're federal, you won't qualify for income based repayment or anything once you've consolidated them. I seem to recall you mentioning your wife is a nurse elsewhere? When looking for a new job, see if she can negotiate loan repayment, or look into whether any of the hospitals in the area count as 'under-served' by the government- you can get loan elimination for these through Nurse Corps. If I remember right it was 25% loan elimination after 1 year, and another 33% after 3 years or something like that. Anyway, worth considering if most of the debt is hers.

Thanks.  Yeah, that 6.8% is rough.  I was thinking about re-fi but we will pay them off so quickly when we get to that stage of our life.  Probably not worth losing all the "perks" of a fed loan. 

She is indeed a nurse and we have read the loan elimination for working in "under-served" areas.  Probably won't qualify for these. 

Thanks.

zolotiyeruki

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Re: Case Study: My Journey to SAHS
« Reply #3 on: October 07, 2015, 03:43:05 PM »
I feel like I need to facepunch you on the houses, both current and future.  You're living in a nearly $400k house in Texas?  For just the two of you?!  Either you're living in a very expensive area (in which case you probably need a facepunch), or you're in a house that's way too big (in which case, facepunch again).

I mean, it's great that you're selling the $390k house that's 90 minutes from work and all, but you're only going down to a $350k house?

tonysemail

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Re: Case Study: My Journey to SAHS
« Reply #4 on: October 07, 2015, 04:18:04 PM »
if your tax rate is 25%, then doesn't it make sense to max out 401k before paying off the SL?
http://forum.mrmoneymustache.com/ask-a-mustachian/investing-vs-student-loan/

why not sell the house and rent an apartment?
is the rental market really crap where you live?

Easye418

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Re: Case Study: My Journey to SAHS
« Reply #5 on: October 07, 2015, 07:38:27 PM »
if your tax rate is 25%, then doesn't it make sense to max out 401k before paying off the SL?
http://forum.mrmoneymustache.com/ask-a-mustachian/investing-vs-student-loan/

why not sell the house and rent an apartment?
is the rental market really crap where you live?

It would be, but my objective is to go to SAHM so drop to one income. This means cash flow is king to me.

Rental market is tough with 3 dogs. Not to mention, a rental will run $1800-$2000. A mortgage would run $2000-$2200.

HairyUpperLip

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Re: Case Study: My Journey to SAHS
« Reply #6 on: October 07, 2015, 08:30:08 PM »
good luck. looking forward to updates.

Avidconsumer

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Re: Case Study: My Journey to SAHS
« Reply #7 on: October 08, 2015, 09:36:48 AM »
Where are you living that requires a 390k house 90mins from work in Texas? I could get at least 4,000 sq ft in Texas for that, 30 mins from work. Property taxes are a killer on houses in Texas as well. Your income is currently half ours and you have a house worth twice as much.


Easye418

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Re: Case Study: My Journey to SAHS
« Reply #8 on: October 08, 2015, 12:07:23 PM »
Where are you living that requires a 390k house 90mins from work in Texas? I could get at least 4,000 sq ft in Texas for that, 30 mins from work. Property taxes are a killer on houses in Texas as well. Your income is currently half ours and you have a house worth twice as much.

Did you read the OP?  Like seriously, you comment about far commute, high property taxes, and too much house when I laid it out nicely above.  Do you think I am selling my house and moving for no reason?

I'm not trying to be a douche about this, you just post like I didn't think once about any of those consequences.

good luck. looking forward to updates.

Thanks Hairy.
« Last Edit: October 08, 2015, 12:09:48 PM by Easye418 »

mm1970

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Re: Case Study: My Journey to SAHS
« Reply #9 on: October 08, 2015, 12:18:22 PM »
Where are you living that requires a 390k house 90mins from work in Texas? I could get at least 4,000 sq ft in Texas for that, 30 mins from work. Property taxes are a killer on houses in Texas as well. Your income is currently half ours and you have a house worth twice as much.

Did you read the OP?  Like seriously, you comment about far commute, high property taxes, and too much house when I laid it out nicely above.  Do you think I am selling my house and moving for no reason?

I'm not trying to be a douche about this, you just post like I didn't think once about any of those consequences.

good luck. looking forward to updates.

Thanks Hairy.
I think even though you laid it out, it's not 100% clear.  Probably clear because you wrote it, but the cold body reader, maybe not so much.

So you currently have a 90 minute commute?

And I guess the person asking the question about the cost of the house probably doesn't live in your area of TX.  I'm not in TX, but I have friends there.  Even a quick google search shows me that there are easily areas of Dallas and Austin that have that price tag.  And the commute?  Well, that depends on where your wife works too.

Meowmalade

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Re: Case Study: My Journey to SAHS
« Reply #10 on: October 08, 2015, 12:43:59 PM »
I feel like I need to facepunch you on the houses, both current and future.  You're living in a nearly $400k house in Texas?  For just the two of you?!  Either you're living in a very expensive area (in which case you probably need a facepunch), or you're in a house that's way too big (in which case, facepunch again).

I mean, it's great that you're selling the $390k house that's 90 minutes from work and all, but you're only going down to a $350k house?

Gosh, that's not very nice, especially since the OP wasn't asking for advice on how to cut down his costs.

And Texas is huge, so you can't just make generalizations about housing prices.  Austin is getting to be quite an expensive place to live, especially if you want to be central (and traffic is so awful now that it makes a huge difference in commute time to live farther out).  I sold an older 1-bedroom condo in Austin for over $200K two years ago, and prices have only gone up since then.

Easye418

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Re: Case Study: My Journey to SAHS
« Reply #11 on: October 08, 2015, 01:28:10 PM »
I feel like I need to facepunch you on the houses, both current and future.  You're living in a nearly $400k house in Texas?  For just the two of you?!  Either you're living in a very expensive area (in which case you probably need a facepunch), or you're in a house that's way too big (in which case, facepunch again).

I mean, it's great that you're selling the $390k house that's 90 minutes from work and all, but you're only going down to a $350k house?

I feel like I need to facepunch you on the houses, both current and future.  You're living in a nearly $400k house in Texas?  For just the two of you?!  Either you're living in a very expensive area (in which case you probably need a facepunch), or you're in a house that's way too big (in which case, facepunch again).

I mean, it's great that you're selling the $390k house that's 90 minutes from work and all, but you're only going down to a $350k house?

Gosh, that's not very nice, especially since the OP wasn't asking for advice on how to cut down his costs.

And Texas is huge, so you can't just make generalizations about housing prices.  Austin is getting to be quite an expensive place to live, especially if you want to be central (and traffic is so awful now that it makes a huge difference in commute time to live farther out).  I sold an older 1-bedroom condo in Austin for over $200K two years ago, and prices have only gone up since then.

I didn't even see that zolotiyeruki posted.

The house was $331k when we bought it if it makes you feel any better.  My next house range is flexible, I was using $350k as a baseline.  Keep in mind, I live in one of the top school districts in North Dallas and my next move will be in a top school.  This next house will be the one for a LONG LONG LONG time.  Housing prices in Dallas are pretty crazy too.  Very competitive.  I hate to say "I bought this first house as an investment", but it worked out that way.  I'm going to pocket $20-30k NET proceeds in 12 months.  Property tax will be a HUGE win, currently $9000, should drop to $6500-$7000.  That is $250 free cash flow.

As I stated in the first post, I am not a MMM.  I strive for Financial Independence, which in my mind is a mortgage, no other debts, a nice savings rate (max 401k, max IRA), and live a decent life.  I don't need to retire when I am 42. 

Marmalade, It's okay, its a live journal.  Any remarks are welcomed, doesn't mean I will listen to them.   


I think even though you laid it out, it's not 100% clear.  Probably clear because you wrote it, but the cold body reader, maybe not so much.

So you currently have a 90 minute commute?

And I guess the person asking the question about the cost of the house probably doesn't live in your area of TX.  I'm not in TX, but I have friends there.  Even a quick google search shows me that there are easily areas of Dallas and Austin that have that price tag.  And the commute?  Well, that depends on where your wife works too.

Fair enough.  Maybe I was a bit harsh, but I still think he read the first half and posted his remarks! 

Currently 90 minute commute while school is in session, drops to 60 when it is not.

I do live in Dallas, sorry, I guess I should of mentioned that.
« Last Edit: October 08, 2015, 01:30:45 PM by Easye418 »

Avidconsumer

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Re: Case Study: My Journey to SAHS
« Reply #12 on: October 08, 2015, 02:01:48 PM »
Where are you living that requires a 390k house 90mins from work in Texas? I could get at least 4,000 sq ft in Texas for that, 30 mins from work. Property taxes are a killer on houses in Texas as well. Your income is currently half ours and you have a house worth twice as much.

Did you read the OP?  Like seriously, you comment about far commute, high property taxes, and too much house when I laid it out nicely above.  Do you think I am selling my house and moving for no reason?

I'm not trying to be a douche about this, you just post like I didn't think once about any of those consequences.

good luck. looking forward to updates.

Thanks Hairy.

No but you're planning on putting 70k down for another house to get rid of PMI. Why so much down? 350k house? I read other peoples comments also. You asked for facepunches. You're getting them.

$6,500 is not a bargain on property taxes on your income. I'm not MMM either. I just want to be rich probably like you, but you're going about it wrong. You're allocating too much costs to your house and if you lose your job, you could foreclose. That's where you're at. Yea I know you're downsizing to something almost exactly the same price. You're just playing with fire. That's the harsh truth...
« Last Edit: October 08, 2015, 02:12:52 PM by Avidconsumer »

Easye418

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Re: Case Study: My Journey to SAHS
« Reply #13 on: October 08, 2015, 08:36:24 PM »
I said $350k would be my maximum anyways. I honestly don't see myself at $70k for too much longer. I expect to be at the next bump up before my wife gets pregnant.

And let's face it, anything is better than right now.

tonysemail

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Re: Case Study: My Journey to SAHS
« Reply #14 on: October 09, 2015, 04:53:46 PM »

It would be, but my objective is to go to SAHM so drop to one income. This means cash flow is king to me.

Rental market is tough with 3 dogs. Not to mention, a rental will run $1800-$2000. A mortgage would run $2000-$2200.

Yeah, I can see how killing debt is a priority with your goal.
Still, I would offer two counter arguments to think about.
1) at age 26, you should be at the steep part of your career ladder, where you can earn big raises every year.
you mentioned gunning for a promotion and a big raise.
I bet the cash flow problem today will look insignificant 5 years from now.

2) Oddly enough, I would take full advantage of the dual income years to sock away into the 401k.
It's pretty darn hard to beat 25% and I'd regret losing that opportunity.


Yeah, the difficulty of renting with 3 dogs makes perfect sense.  Good luck on the house hunt :)

mm1970

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Re: Case Study: My Journey to SAHS
« Reply #15 on: October 09, 2015, 05:20:09 PM »
Quote
Fair enough.  Maybe I was a bit harsh, but I still think he read the first half and posted his remarks! 

Currently 90 minute commute while school is in session, drops to 60 when it is not.

I do live in Dallas, sorry, I guess I should of mentioned that.
I've got friends in Colleyville and Oak Cliff.  And elsewhere in Dallas too. Some areas are pricey!  Colleyville folks have their eldest in...oh, some Top tier STEM high school.

Some good schools in that area.

Thegoblinchief

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Re: Case Study: My Journey to SAHS
« Reply #16 on: October 09, 2015, 05:52:21 PM »
Two comments:

Any areas with even cheaper housing but still close to family/work with worse schools? Do a cost/benefit on relative cost of paying for private school (or homeschooling) versus the huge drain of expensive house/taxes.

I live in one of the worst school systems in the country but we homeschool so it doesn't matter.

Since you mentioned keeping this a "living journal"...why not start a journal in that subforum? :)

Easye418

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Re: Case Study: My Journey to SAHS
« Reply #17 on: October 10, 2015, 10:21:39 AM »
@thegoblinchief

Yeah, there are a few, but crime goes way up. My only concern.

Oh, I didn't realize their was a journal section. Thanks

@mm1970

Dallas is booming like crazy. I'm just happy there are several areas with extremely strong Public School systems. Lots of options.

@tonysemail

1.  That's the plan. However, planning for the worst to be prepare. CPG Finance is fairly secure and I'm nearing that 4-5 year mark to get to the senior levels.

2. That is also the plan. When my wife gets (soon I hope, she just finished school yesterday, yay!), we will be banking. I'll force save by jacking up my 401k.  Difficult is not the word, having 3 dogs are a bitch to rent with.

Easye418

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Re: Case Study: My Journey to SAHS
« Reply #18 on: October 21, 2015, 10:50:20 AM »
Update:

Application period closed for a job my wife is looking into too.  Received a call from two recruiters there and did well in the screening.  Looking positive still.  From past applications, it took people around 30 days from screening to offer.

In the meantime, we continue working hard....

Cash: $2,300
Side Income Secured: $2,400 (estimated $7,800 total)
Asset liquidation: $4,347

Total cash put aside: $9,047

Goal: $25,000 Cash by March 2016

Easye418

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Re: Case Study: My Journey to FI
« Reply #19 on: February 16, 2016, 04:03:49 PM »
Life Situation: UPDATED 02/16/2016

Gross Salary/Wages:
$75,000 me (should be moving up to $82,000 on April 1st)
$67,000 her
$142,000 Salary ($25K increase in salary, $32k on April 1st estimate)

Pre-tax deductions:
14% 401k me + 3% emp match me
5% 401k her + 5% emp match her
Healthcare = $450 a month (Both of us, Med,Vision,Dental)


Other Ordinary Income:
Side Income = $6000-$8000 (cash) once a year.  Not guarenteed every year.
Made $9,000 cash Dec 2015.  May have it one last time at tail end of 2016

Current expenses:
Gym: $20
Car Insurance: $143
ATT Internet and DirecTV: $100 (FP on TV)
ATT Cell: $150 for both ($70 back from my company) = $80
Utilities (G,E,W): $280 (estimate)
Student Loans: $191 me/ deferred payment for her (add another $530 in July)
Food: $500 (includes dog food, $40 a month)
Gas: $200
Subtotal: $2,114 (starting in July)

Mortgage:
Went under contract on my house today yay!  Bought for $331k in Sept 2014, under contract at $374k.  Net proceeds ~ $37.5k

Expense Total Monthly: Estimating mortgage payment to be the same or slightly less $2,550 a month + $2,114 = ~4,664 in bills.

Assets:
Cash for downpayment: $17.5k + bonus in March ~$5k after taxes = $23.5k
Home: ~$374k

My Car (35k miles), paid off, Hyundai
Her car (110k miles), paid off, Chrysler POS
Misc assets, furniture, etc.  $XXk dollars.

Retirement Accounts:
$85.5k in Vanguard IRA
$6.2k in 401k


Liabilities: (pretty much the same)
Loan.....................Amount........Rate                             
Student Loan 1........$24,467.10...6.80%
Student Loan 2........$9,050.48.....5.16%
Student Loan 3........$23,587.86....~4%
Student Loan 4........$5,422.35......~3%

Mortgage:  $307k @  4.125%, 30 year fixed. (Bought Sept 2014) (soon be different)



1.  So, the big thing is that my wife and I decided that she will not be a SAHS, but she will return to the work force.  Since she is a nurse, she will be able to work flexible hours and she is okay with sending a child to daycare for a handful of days.

2.  Income went up $25K (fairly confident on $82k, but it might fall short to $80k, find out in March). 

3.  On top of 401k's, we are saving ~$3,000 cash a month.  Very happy about this.  It has made saving for a down payment MUCH easier.  By the time we close (Mar 24th, leaseback until April 24th), we should have close to $67,500 cash to put onto a house.


Questions for you fine people

1.  How are we doing? 
2.  Should we focus on Student Loans instead of putting extra in 401k (besides matching)?



Bracken_Joy

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Re: Case Study: My Journey to FI
« Reply #20 on: February 16, 2016, 04:20:32 PM »
Life Situation: UPDATED 02/16/2016

Gross Salary/Wages:
$75,000 me (should be moving up to $82,000 on April 1st)
$67,000 her
$142,000 Salary ($25K increase in salary, $32k on April 1st estimate)

Pre-tax deductions:
14% 401k me + 3% emp match me
5% 401k her + 5% emp match her
Healthcare = $450 a month (Both of us, Med,Vision,Dental)


Other Ordinary Income:
Side Income = $6000-$8000 (cash) once a year.  Not guarenteed every year.
Made $9,000 cash Dec 2015.  May have it one last time at tail end of 2016

Current expenses:
Gym: $20
Car Insurance: $143
ATT Internet and DirecTV: $100 (FP on TV)
ATT Cell: $150 for both ($70 back from my company) = $80
Utilities (G,E,W): $280 (estimate)
Student Loans: $191 me/ deferred payment for her (add another $530 in July)
Food: $500 (includes dog food, $40 a month)
Gas: $200
Subtotal: $2,114 (starting in July)

Mortgage:
Went under contract on my house today yay!  Bought for $331k in Sept 2014, under contract at $374k.  Net proceeds ~ $37.5k

Expense Total Monthly: Estimating mortgage payment to be the same or slightly less $2,550 a month + $2,114 = ~4,664 in bills.

Assets:
Cash for downpayment: $17.5k + bonus in March ~$5k after taxes = $23.5k
Home: ~$374k

My Car (35k miles), paid off, Hyundai
Her car (110k miles), paid off, Chrysler POS
Misc assets, furniture, etc.  $XXk dollars.

Retirement Accounts:
$85.5k in Vanguard IRA
$6.2k in 401k


Liabilities: (pretty much the same)
Loan.....................Amount........Rate                             
Student Loan 1........$24,467.10...6.80%
Student Loan 2........$9,050.48.....5.16%
Student Loan 3........$23,587.86....~4%
Student Loan 4........$5,422.35......~3%

Mortgage:  $307k @  4.125%, 30 year fixed. (Bought Sept 2014) (soon be different)



1.  So, the big thing is that my wife and I decided that she will not be a SAHS, but she will return to the work force.  Since she is a nurse, she will be able to work flexible hours and she is okay with sending a child to daycare for a handful of days.

2.  Income went up $25K (fairly confident on $82k, but it might fall short to $80k, find out in March). 

3.  On top of 401k's, we are saving ~$3,000 cash a month.  Very happy about this.  It has made saving for a down payment MUCH easier.  By the time we close (Mar 24th, leaseback until April 24th), we should have close to $67,500 cash to put onto a house.


Questions for you fine people

1.  How are we doing? 
2.  Should we focus on Student Loans instead of putting extra in 401k (besides matching)?


Thanks for the update!

1. Congrats on the raise! That is excellent.
2. Be sure to pay off as much of her accrued interest as possible before she leaves deferment, so that it does not capitalize into the principle! This is a huge mistake many people make.
3. I personally am paying off all student loans above 5% until I add more to my 401(k) past the match. It depends on what you think is reasonable returns. I think argument could be made for your 5.16% loan, but I would want that 6.8% gone ASAP. You are not going to get market returns higher than that. I have a credit card that is scarcely higher than that (7.4%). That's a lot of money to have losing that much... I suppose the counter argument is, if you think the market is at a 'bottom' right now, you'll want to buy in so you profit on the upswing. I guess it largely depends on how confident you are of high returns.

I'm sure you've seen this before, but in case you haven't:
WHAT
0. Establish an emergency fund to your satisfaction
1. Contribute to 401k up to any company match
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield. (yield is currently 1.78%, so anything above 6.78%)
3. Max HSA
4. Max Roth or Traditional IRA based on income level
5. Max 401k (if 401k fees are lower than available in an IRA, swap #4 and #5)
6. Fund mega backdoor Roth if applicable
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield. (yield is currently 1.78%, so anything above 4.78%)
8. Invest in a taxable account with any extra.

WHY
0. Give yourself at least enough buffer to avoid worries about bouncing checks
1. Company match rates are likely the highest percent return you can get on your money
2. When the guaranteed return is this high, take it.
3. HSA funds are totally tax free when used for medical expenses, making the HSA better than either traditional or Roth IRAs.
4. Rule of thumb: trad if current marginal rate is 25% or higher; Roth if 10% or lower; flip a coin in between
5. See #4 for choice of traditional or Roth for 401k
6. Applicability depends on the rules for the specific 401k
7. Again, take the risk-free return if high enough
8. Because earnings, even if taxed, are beneficial

If you're comfortable going into it, I would love to know more about your decision process with her returning to work. I ended up going to work full time (also a nurse), but we had the SAHS discussion, so I'm curious about parallels/differences!

2Birds1Stone

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Re: Case Study: My Journey to SAHS (updated 02/16)
« Reply #21 on: February 16, 2016, 05:00:57 PM »
Wow you guys are in a fantastic spot!!

Healthy incomes, good savings rate, and it will only get better from here on out =)


Easye418

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Re: Case Study: My Journey to SAHS (updated 02/16)
« Reply #22 on: February 16, 2016, 06:37:43 PM »
Wow you guys are in a fantastic spot!!

Healthy incomes, good savings rate, and it will only get better from here on out =)

Thank you. That's the hope. I am really happy at $142k annually. Anything more is just bonus.

Thanks for the update!

1. Congrats on the raise! That is excellent.
2. Be sure to pay off as much of her accrued interest as possible before she leaves deferment, so that it does not capitalize into the principle! This is a huge mistake many people make.
3. I personally am paying off all student loans above 5% until I add more to my 401(k) past the match. It depends on what you think is reasonable returns. I think argument could be made for your 5.16% loan, but I would want that 6.8% gone ASAP. You are not going to get market returns higher than that. I have a credit card that is scarcely higher than that (7.4%). That's a lot of money to have losing that much... I suppose the counter argument is, if you think the market is at a 'bottom' right now, you'll want to buy in so you profit on the upswing. I guess it largely depends on how confident you are of high returns.

I'm sure you've seen this before, but in case you haven't:
WHAT
0. Establish an emergency fund to your satisfaction
1. Contribute to 401k up to any company match
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield. (yield is currently 1.78%, so anything above 6.78%)
3. Max HSA
4. Max Roth or Traditional IRA based on income level
5. Max 401k (if 401k fees are lower than available in an IRA, swap #4 and #5)
6. Fund mega backdoor Roth if applicable
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield. (yield is currently 1.78%, so anything above 4.78%)
8. Invest in a taxable account with any extra.

WHY
0. Give yourself at least enough buffer to avoid worries about bouncing checks
1. Company match rates are likely the highest percent return you can get on your money
2. When the guaranteed return is this high, take it.
3. HSA funds are totally tax free when used for medical expenses, making the HSA better than either traditional or Roth IRAs.
4. Rule of thumb: trad if current marginal rate is 25% or higher; Roth if 10% or lower; flip a coin in between
5. See #4 for choice of traditional or Roth for 401k
6. Applicability depends on the rules for the specific 401k
7. Again, take the risk-free return if high enough
8. Because earnings, even if taxed, are beneficial

If you're comfortable going into it, I would love to know more about your decision process with her returning to work. I ended up going to work full time (also a nurse), but we had the SAHS discussion, so I'm curious about parallels/differences!

Thanks for the info. I agree with the E Fund and lower 401k temporarily. I've always used my Bene IRA as my parachute.

Well we still have the hope of letting her stay at home when we have a child. However, we both have expectations and standards that we want to try to live by. She is a great wife who understands you have to make sacrifices for the things you desire and she is willing to work for those.  She will slowly go back into the work force so its not a sudden change. We hope to start trying soon and pray that God allows us to have a beautiful baby. :)

Bracken_Joy

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Re: Case Study: My Journey to SAHS (updated 02/16)
« Reply #23 on: February 16, 2016, 06:56:42 PM »
I took a job specifically to allow for flexibility. I'm a per diem employee. The tradeoff is lots of $$ and benefits, but I have absolute control over my contracts and schedules. I have been able to adjust my schedule as needed for my family, and will continue to do so. If you find her current schedule doesn't allow enough flexibility, the type of company I work for is national (a couple national options, I work for one), so feel free to ask for details. I do home health pediatrics.

It would definitely be a salary step down though =) And if what you're doing works, absolutely don't need to fix it! Just a lot of people don't know the options for per diem work, which allows you to be your own boss in so many ways.

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Re: Case Study: My Journey to SAHS (updated 02/16)
« Reply #24 on: February 17, 2016, 11:24:02 AM »
With your high combined income, I'd focus on pre-tax contributions--Bracken_Joy is right.  Not only are you pushing into higher tax brackets, IRA deductions start phasing out over $98k of AGI, and student loan interets deductions start phasing out at $130k.
--401k to get the match (this gets you below the $130k for SL interest deduction)
--Student loans (tax deduction is capped at $2500, but with a 6%+ interest rate, get rid of that)
--More 401k or HSA to get your MAGI under $98k
--Max out traditional IRAs for both

Easye418

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Re: Case Study: My Journey to SAHS (updated 02/16)
« Reply #25 on: April 21, 2016, 10:05:08 AM »
Life Situation: UPDATED 04/21/2016

My Income went to $85,000.  That was a pleasant surprise.  Boss intially told me in Dec that he is pushing for $82k.  We now are at combined income of $152k.

We sold our old house and bought a cheaper one.  Saving roughly $200-$300 a month on the mortgage.

Comments for you fine people:

Plan on trying for Baby #1 in August.  We have roughly $4,300 cash monthly to throw to Student Loans.  My wife's car is also on the fence and she has been waiting such a long time for an upgrade. 

I want to pay off Student Loan debt as fast as possible, however, I also want to enjoy a percentage of our hard earned income.  Right now, life is "all work, no play".  I am thinking about putting $1,500-$2,000 towards Student Loans a month (about 3X payment).  I also really want to build an emergency fund of about $10-$15k. 

$2,000 Student Loans
$1,000 E Fund (for 10-15 months)
$1,300 for Leftover (potentially move my 401k up to 9-12% and have around $900 leftover)

Thoughts? Comments?

I just can't live with being such a tight ass day in, day out in my 20's.... It's just consuming my life to save, save, save, save.... feel like I am preparing a fancy grave or nice package for my children.   I just turned 27 a few days ago and I am like "man.... all I did was work and save(pay off debts) during the whole last year"
« Last Edit: April 21, 2016, 10:07:41 AM by Easye418 »

zolotiyeruki

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Re: Case Study: My Journey to SAHS (updated 04/21)
« Reply #26 on: April 21, 2016, 01:01:06 PM »
That's some great progress!

With regards to feeling like you're being too tight, I can relate.  For DW and myself, we include an "entertainment" category in our monthly budget.  That allows us to eat out, or do something more fun/discretionary, without feeling guilty.

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Re: Case Study: My Journey to SAHS (updated 04/21)
« Reply #27 on: April 21, 2016, 01:56:42 PM »
You are in a very solid spot.  Make sure you have enough emergency fund, and then plan a vacation. It gets much harder to get away after you have kids, so take one now!  Does not have to be too spendy, but that way you don't feel like all you do is work and save. 

Once you have the right fundamentals in place and your don't have hair-on-fire debt, you should be thinking about lifestyle design, as opposed to just constant saving.  What is the life you want for yourself and your family?  That does not mean spending, but may mean paying for those activities or trips that truly add value.

Best of luck!

former player

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Re: Case Study: My Journey to SAHS (updated 04/21)
« Reply #28 on: April 21, 2016, 02:08:20 PM »
Nice job on the salary increases, selling the big house that was in the wrong place and on controlling spending.

Two of your student loans have interest rates over 5%.  Is there any chance you could refinance them to something under 4%?  You would then be at the point where you could slow down the overpayments and free up some cashflow for a bigger emergency fund (nice to have when hopefully kids are coming along) plus a small "entertainment/frivolities" monthly budget.

I agree with Lucky Girl that a holiday before you have kids is the way to go.

Easye418

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Re: Case Study: My Journey to SAHS (updated 04/21)
« Reply #29 on: April 22, 2016, 11:40:51 AM »
That's some great progress!

With regards to feeling like you're being too tight, I can relate.  For DW and myself, we include an "entertainment" category in our monthly budget.  That allows us to eat out, or do something more fun/discretionary, without feeling guilty.

You are in a very solid spot.  Make sure you have enough emergency fund, and then plan a vacation. It gets much harder to get away after you have kids, so take one now!  Does not have to be too spendy, but that way you don't feel like all you do is work and save. 

Once you have the right fundamentals in place and your don't have hair-on-fire debt, you should be thinking about lifestyle design, as opposed to just constant saving.  What is the life you want for yourself and your family?  That does not mean spending, but may mean paying for those activities or trips that truly add value.

Best of luck!
Nice job on the salary increases, selling the big house that was in the wrong place and on controlling spending.

Two of your student loans have interest rates over 5%.  Is there any chance you could refinance them to something under 4%?  You would then be at the point where you could slow down the overpayments and free up some cashflow for a bigger emergency fund (nice to have when hopefully kids are coming along) plus a small "entertainment/frivolities" monthly budget.

I agree with Lucky Girl that a holiday before you have kids is the way to go.

Thanks for the feedback.

We were going to go on a Babymoon but the freaking Zika virus pretty much killed that dream.

We are very much beach goers so Mexico or Carribeans.  :(

Easye418

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Re: Case Study: My Journey to SAHS (updated 04/21)
« Reply #30 on: August 09, 2016, 11:12:52 AM »
Life Situation: UPDATED 08/09/2016

Income is same since last update.  Still on target to get off cycle raise of probably 5-6% in October.

Mortgage payment from moving is down $300 dollars!  I was very excited about this one.

It finally hit me...... my god! I don't have any cash reserves in case the worst happens (even though it was mentioned in this thread)!  Immediately flipped the switch on this in July, this Friday, we will crack $10,000 in e-fund.  Very happy about that.  We were paying nearly $3,000 a month towards other debts and it slapped me in the face hard that cash is king.  Can't believe it took so long. 

Now that I have $10,000 cash put aside (3 months efund), I will continue walking that up to $15k while shifting some back to paying off debts. 

We are living off pretty much my income minus the $500 student loan payment for my wife.  Spending has been variable lately, so I am really trying to get that in check to free up cash flow.  It should get better going forward.

TTC Baby #1 so our income should stay constant for at least 9 months from this date. 

Life is getting better, now with cash reserves, I feel a little more secure than I did 3 months ago. 

Income: $152K
Assets: ~$120K 401k + $10K EFund
Debts: Mortgage, Student Loan, Home Improvement Loan (small)
« Last Edit: August 09, 2016, 11:28:06 AM by Easye418 »

Bracken_Joy

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Re: Case Study: My Journey to SAHS (updated 04/21)
« Reply #31 on: August 10, 2016, 08:54:49 AM »
Life Situation: UPDATED 08/09/2016

Income is same since last update.  Still on target to get off cycle raise of probably 5-6% in October.

Mortgage payment from moving is down $300 dollars!  I was very excited about this one.

It finally hit me...... my god! I don't have any cash reserves in case the worst happens (even though it was mentioned in this thread)!  Immediately flipped the switch on this in July, this Friday, we will crack $10,000 in e-fund.  Very happy about that.  We were paying nearly $3,000 a month towards other debts and it slapped me in the face hard that cash is king.  Can't believe it took so long. 

Now that I have $10,000 cash put aside (3 months efund), I will continue walking that up to $15k while shifting some back to paying off debts. 

We are living off pretty much my income minus the $500 student loan payment for my wife.  Spending has been variable lately, so I am really trying to get that in check to free up cash flow.  It should get better going forward.

TTC Baby #1 so our income should stay constant for at least 9 months from this date. 

Life is getting better, now with cash reserves, I feel a little more secure than I did 3 months ago. 

Income: $152K
Assets: ~$120K 401k + $10K EFund
Debts: Mortgage, Student Loan, Home Improvement Loan (small)

Glad to hear the update and all is going well! Key point though: never count on income staying the same in pregnancy unless you have good disability insurance that has pregnancy as a qualifying event. Medically complex pregnancies are not rare, and even though fewer women are put on bedrest than they used to be, plenty still are. Added to that, babies don't always wait 9 months. About 1 in 10 babies are born premature in the US (http://www.cdc.gov/reproductivehealth/maternalinfanthealth/pretermbirth.htm) Anyway, just be sure none of your savings goals or debt goals are based on a 9 month assumption.

frugaldrummer

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Re: Case Study: My Journey to SAHS (updated 08/09)
« Reply #32 on: August 13, 2016, 02:02:03 PM »
Quote
1.  So, the big thing is that my wife and I decided that she will not be a SAHS, but she will return to the work force.  Since she is a nurse, she will be able to work flexible hours and she is okay with sending a child to daycare for a handful of days.

And don't base your financial decisions on this assumption.  Many women change their minds about this once the baby is born.  Or the baby may have special needs. Or you may find that quality childcare that you are comfortable with eats up most of her after-tax income anyway.  You just never know how you'll feel about this until after the baby is born. I think you're right to build up your emergency fund and then try to get your student loan payments down (usually you should pay off the highest interest ones first, but for you, paying off the lowest balances to reduce the monthly required payment may make more sense.)

Easye418

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Re: Case Study: My Journey to SAHS (updated 08/09)
« Reply #33 on: October 01, 2016, 10:41:37 AM »
Feeling good!  Got a new job (+$30k in pay, $110k for me, $70k for my wife, $180k total) Oh, and my bonus is now 15% vs 10%. 


AssetsAmount
E-Fund $15,000
401k+IRA $120,000
Expenses As of 10/15/16
Gym $20
Amica $143
DirecTV $55
Grande Internet $50
ATT Cell $150
Coserv $250
Water $120
Student Loans $700
Food $500
Gas $250
Tolls $320
Loan B $225
Total Bills Ex Mortgage $2,783
Mortgage (Fully Loaded) $2,250
Total Bills $5,033
Take Home $10,800
Leftover $5,767
Savings Rate53.4%
DebtsAmountTermInterest
A $313,000 303.75%
B $31,000 205.99%
C $63,000 105.11%
D $4,100 00.00%
Payment PlanAllocation Monthly
Savings $1,500
Student Loans $2,000
Loan D $1,500
"Flex" Spending $767

Note: Loan D is 0% until June of next year, not really concerned, just want it to be gone. "Flex" Spending is just to make up for margin of error on expenses.
My wife and I are only matching our 401k currently (5% and 4% respectively), trying for a baby in the next 12 months, also saving for a new car for my wife (trying to budget around $30k)...  Not trying for the most frugal plan,  I like to say I am leaning towards frugal on a spectrum from frugal -------|---------------- spendy,

With that being said, I am focused in the right spots? Am I missing anything? Should I be focusing on my 401k? Thoughts/Comments/Critiques, would love to hear it, Thanks!
« Last Edit: October 01, 2016, 03:30:08 PM by Easye418 »

Dee18

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Re: Case Study: My Journey to SAHS (updated 10/01, big step forward)
« Reply #34 on: October 01, 2016, 01:59:06 PM »
By my math (and I truly hope I'm missing something here) a year ago you were in debt $369,526.  Now you are in debt $411,100, so your debt has increased $41,574.  I'm puzzled about why this leads you to "feeling good."

Easye418

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Re: Case Study: My Journey to SAHS (updated 10/01, big step forward)
« Reply #35 on: October 01, 2016, 02:24:38 PM »
By my math (and I truly hope I'm missing something here) a year ago you were in debt $369,526.  Now you are in debt $411,100, so your debt has increased $41,574.  I'm puzzled about why this leads you to "feeling good."

Such a "half empty" response.  You literally mentioned the one negative thing about my progress, but  I guess it's a fair point though.  Like I said, I am not really a MMM, I don't want to retire at 35, but I value the opinions.

A year ago, I made $112k/$369k = ~32% income to debt ratio.  Now I am at $180k/$411K = ~44% income to debt. 

I make a healthy income, can pay debt down quickly, not really debt averse, have a sizable e-fund, no reason to move from my house for a very long time, and have a great savings rate.  I did take on a bit of debt, but I feel like I am at the turning point now.

You tell me, am I in a better position a year ago or now?

Thank you for the reply though, all is welcomed.


« Last Edit: October 01, 2016, 03:12:08 PM by Easye418 »

Nick_Miller

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Re: Case Study: My Journey to SAHS (updated 10/01, big step forward)
« Reply #36 on: October 01, 2016, 03:13:26 PM »
Congrats on the higher income, but how/why did you add $30k in non-mortgage debt?

Edited: nevermind

Easye418

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Re: Case Study: My Journey to SAHS (updated 10/01, big step forward)
« Reply #37 on: October 01, 2016, 03:29:07 PM »
Congrats on the higher income, but how/why did you add $30k in non-mortgage debt?

Edited: nevermind

Thanks!

Just assume the $30k is a facepunch...  It's a not a point for discussion.  We discussed the pros and cons of this and ultimately, we decided to take the risk.  My wife is fully aware that this delays her SAHS status.

I like to think that this is the largest my debt will ever get and it is only downhill (in a positive way) from this day forward.  10/15, I will be submitting a nice $2,000 check to Great Lakes Student Loans.

Positive things to come!
« Last Edit: October 01, 2016, 03:31:30 PM by Easye418 »

Easye418

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Re: Case Study: My Journey to SAHS (updated 10/01, big step forward)
« Reply #38 on: April 02, 2018, 08:41:34 AM »
AssetsAmount
E-Fund $15,000
401k+IRA $180,000
Expenses As of 04/02/2018
Gym $20
Amica $143
DirecTV $55 $25 (moved to Sling)
Grande Internet $50
ATT Cell $150 $102 (moved to Cricket)
Coserv $250
Water $120
Student Loans $700 $102
Food $500
Gas $250
Tolls $320
Loan B $225
Daycare $1300
Car $515
Total Bills Ex Mortgage $3,922
Mortgage (Fully Loaded) $2,250
Total Bills $6,127
Take Home $10,800
Leftover $4,673
Savings Rate43.3%
Net Worth +$186,300 (roughly)
DebtsAmountTermInterest
A $313,000 $302,500303.75%
B $31,000 $29,500205.99%
C $63,000 $7,850 105.11%
D $29.537 61.8%

Well, last week was a pretty huge for us as I got my first bonus check that actually makes a dent into debt (only because I popped around jobs for the last 5 years to get my base up by ~20% each time so it was worth it).  Baby is now going on 9 months, expenses haven't really gone up that much honestly  besides daycare but we knew that.  We had uncertainty about my SO returning to work but it honestly has been great.  She works part time and makes nearly as much as she was before she left full time just due to raises and call pay.  Daycare will drop by $400-$500 a month when my baby turns 1 because we won't be forced to pay 5 days a week anymore to secure a spot in the infant room. 

Last 18 months we have really been focusing on eliminating student loans for good.  My student loans are officially gone for good FOREVER, the remaining is my SO but we should be able to wipe it out sometime this year.  From $63K down to $7,850 feels REALLY good.  We are finally taking a vacation (without the baby) for the first time in 4 years. 

You will see a new loan popped up for around $30K, that would be the new car.  We had around $20K saved up in cash, we used it against our high interest student loans.  Pretty much swapped high interest debt for low interest debt (shorter term though). 

Good news is that we will be out of student loan debt by 30 years old (turning 29 next month ::scary::)  The switch to low cost cell phone and TV has been AMAZING.  Also, not having to write a $700 check but a $102 check to the government has really been helping us focus on where to go next. 

Future payments will go to finishing off Student Loans, then we will attack the $515 payment on the car, then we will attack the 20 year home loan.  I know the interest is higher but trying to free up cash flow options. 

We absolutely love our little baby, my SO and I discussed having upwards of 4 children, but its overwhelming to think that and try to accomplish being retired (or semi retired) by 50ish WHILE maintaining our current lifestyle. 
« Last Edit: April 02, 2018, 08:47:01 AM by Easye418 »

MrThatsDifferent

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Congrats on the student loans achievement for yourself. Iím surprised though with all that youíve learned that you would finance a $30k vehicle? You just added more debt. Every piece of advice is take $8000 or less in cash and buy a used vehicle. Now you have more repayments, when your goal should be none, outside a mortgage and saving as much as possible. Weird.

Easye418

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Congrats on the student loans achievement for yourself. I’m surprised though with all that you’ve learned that you would finance a $30k vehicle? You just added more debt. Every piece of advice is take $8000 or less in cash and buy a used vehicle. Now you have more repayments, when your goal should be none, outside a mortgage and saving as much as possible. Weird.

I get the forum wouldn't approve of it. It's low interest debt that I can handle.  Was it the most financially sound move? No but I have no regrets.

Thanks for the post.  In July 2018, daycare will drop by $500ish and we will start doubling down on the car. Should be able to pay it off quickly.

I understand the criticism though.
« Last Edit: April 02, 2018, 01:43:09 PM by Easye418 »

MrThatsDifferent

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Congrats on the student loans achievement for yourself. Iím surprised though with all that youíve learned that you would finance a $30k vehicle? You just added more debt. Every piece of advice is take $8000 or less in cash and buy a used vehicle. Now you have more repayments, when your goal should be none, outside a mortgage and saving as much as possible. Weird.

I get the forum wouldn't approve of it. It's low interest debt that I can handle.  Was it the most financially sound move? No but I have no regrets.

Thanks for the post.  In July 2018, daycare will drop by $500ish and we will start doubling down on the car. Should be able to pay it off quickly.

I understand the criticism though.

Can handle and should are two different things. Youíve done it because of lifestyle inflation, not because youíve learned the lessons here. Which means youíll keep making decisions like this because you feel you can afford it. Itís a wasteful use of money now, when your debts needed to be your priority and later when your family could have used the compound effects of that money for your savings, not for a shiny new toy just so you can show off to the world. Youíre not out of debt, your savings are too low now, you donít need or deserve a brand new car bought on credit. Donít keep repeating the mistakes of your past, your family needs you to be more responsible and mature.

Easye418

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Without updating the entire table, just some nuggets:

401K + IRA : $180,000  $195,000

Debts:  -$369,387 -$340,189  It was 4 loans, now only 3 remain, excluding the mortgage, I have $49K debt.

Net Worth:  +$186,300 +$251,883

So in ~15 months, I was able to drop my total debt by $30K.

Plans: 

Shave off another $7-$10K in 2019. 

Raise my e-fund from $15K to $25K. 

Hopefully by 2021, I am maxing out both 401Ks.

Thoughts:

After re-reading the original post, I realize I was arrogant and brash back in 2015.  I was much more aggressive, hostile, quick to react, "smartest guy" in the room mentality.  I made many mistakes in the past but I feel I have a much clearer mind and more wisdom typing here in 2019.  It is amazing how a person can grow in 4 years time.  I am glad I left this post for myself to reflect.

Cheers
« Last Edit: May 29, 2019, 12:13:00 PM by Easye418 »

zolotiyeruki

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Re: Case Study: My Journey to SAHS (updated 05/19)
« Reply #43 on: May 29, 2019, 03:05:51 PM »
So I'm guessing the "C" debt has been retired?  That's great!

Quote
After re-reading the original post, I realize I was arrogant and brash back in 2015.  I was much more aggressive, hostile, quick to react, "smartest guy" in the room mentality.  I made many mistakes in the past but I feel I have a much clearer mind and more wisdom typing here in 2019.  It is amazing how a person can grow in 4 years time.  I am glad I left this post for myself to reflect.

It's a good thing when one can recognize this.  I like to say "the older I get, the dumber I was."  I may not be smart now, but I'm a lot less dumb than I was! :)  I'm a lot more teachable now than I used to be.

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Without updating the entire table, just some nuggets:

Debts:  -$369,387 -$340,189  It was 4 loans, now only 3 remain, excluding the mortgage, I have $49K debt.



So you've actually taken on more debt since your last update a year ago?  Because a year ago your non-mortgage debt was only(!) 37k, but now it's 49k.  So, new consumer debt since you started posting here is a car loan, a home improvement loan and now this unspecified other 5 figure loan.

You've got a great income, you can pay it off, again.  But it is not the mustachian way, and this continuing cycle of paying off debt while adding new debt is pretty standard modern consumerism, and a worrying pattern for your family's future.

I'd like to see you commit to taking on no more consumer debt in the next year.

Easye418

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Re: Case Study: My Journey to SAHS (updated 05/19)
« Reply #45 on: May 30, 2019, 09:45:24 AM »
Without updating the entire table, just some nuggets:

Debts:  -$369,387 -$340,189  It was 4 loans, now only 3 remain, excluding the mortgage, I have $49K debt.



So you've actually taken on more debt since your last update a year ago?  Because a year ago your non-mortgage debt was only(!) 37k, but now it's 49k.  So, new consumer debt since you started posting here is a car loan, a home improvement loan and now this unspecified other 5 figure loan.

You've got a great income, you can pay it off, again.  But it is not the mustachian way, and this continuing cycle of paying off debt while adding new debt is pretty standard modern consumerism, and a worrying pattern for your family's future.

I'd like to see you commit to taking on no more consumer debt in the next year.


Thank you for the reply.  I believe you misread my year ago post (and/or I did the math wrong above)

Last update a year ago:  $66,887 in non mortgage debt

This update:  $44,934 in non mortgage debt

As for not taking on more debt, yes, I am at the point to where I burdened myself with debt and now I don't really require anything else, now I am in maintenance mode.  So, I have no plans on adding to consumer debt. 

So I'm guessing the "C" debt has been retired?  That's great!

Quote
After re-reading the original post, I realize I was arrogant and brash back in 2015.  I was much more aggressive, hostile, quick to react, "smartest guy" in the room mentality.  I made many mistakes in the past but I feel I have a much clearer mind and more wisdom typing here in 2019.  It is amazing how a person can grow in 4 years time.  I am glad I left this post for myself to reflect.

It's a good thing when one can recognize this.  I like to say "the older I get, the dumber I was."  I may not be smart now, but I'm a lot less dumb than I was! :)  I'm a lot more teachable now than I used to be.

Thanks for the reply.

Yes,  C has been retired "student loans", my focus is on Loan D to enable me to free up more cash flow to pay towards Loan B.

Hah, I have no regrets about the past but I just look back and I can definitely see I had much less grasp on this whole thing called "life" than I do now.
« Last Edit: May 30, 2019, 09:51:32 AM by Easye418 »

tamuaggie2011

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Re: Case Study: My Journey to SAHS (updated 05/19)
« Reply #46 on: May 30, 2019, 02:05:56 PM »
Reading through this blog post has been great to see not only you change but also the human element. I think it's important for everyone to remember that just because every financial decision seems easy when we read a MMM article online that there are all sorts of temptations out in the real world.

Your example also shows how people can rebound and correct mistakes while still juggling all of their real world responsibilities so thanks for that.

Keep up the good work on paying off your debt!