Situation: Married, no kids although trying. 30, wife 29 with combined HH income of 117k. Expecting to get an inheritance of ≈ 30k at the end of this year. Looking for some advice on the best approach to paying down debts.
Income:
Me = 3624 per month take home
Wife = 2500 per month take home
Total = 6124 per month
Bills
Mortgage = 1200 (min due is 1070 so we pay 130 extra a month)
Car 1 = 217 per month, lease up in August, getting rid of car
Car 2 = 300 per month
Student Loans = 922 per month
Car Insurance = 70 per month for both cars
Sling TV/Internet/Netflix = 80 per month
Cell Phone = 100 per month for both my wife and I
Gas = 100 per month combined
Food = 240 per month combined
Golf = 80 bucks a month (it’s my vice)
Eating out = 80 per month
Gas/Electricity/Water = 300 per month
Total = 3689 per month
Savings
401K = 1194 per month
HSA = 200 per month
Total Assets
401k = 42k combined
House equity = 22k (just purchased in November)
HAS = 2K
Emergency Savings = 5200
Car = 6800
Roth IRA = 1800 (plan on maxing out account starting in May at 500 per month)
Stash account = 600 (using this for a vacation in May, so will be down to 0)
Total = 78400
Total Liabilities
Mortgage = 138.5k @3.99%
Student Loans = 45k @4.99%
Car loan = 6500 @1.9%
Total = 190k
Net worth = (111,600)
So my wife and I have roughly 2400 left over each month (will be about 1900 once I start maxing out the Roth IRA). We’ve been putting that extra money towards the student loan payments for the last few months and plan on keeping that going. In our budget, we do not have the inheritance planned out (the inheritance is 2 properties that still need to be sold, so unsure of timing on that). Currently, with the extra money towards student loans we are expecting to have them paid off sometime late next year.
Now for the mortgage, out of the 1200 dollars we pay per month 87 of it is PMI (we spent a tad bit more than what we were prepared to). So my question is this, if the inheritance does come through should it be paid towards the mortgage to get rid of the PMI payments or would you use it to eliminate the student loan debt? Also, wouldn’t mind reviewing my budget to see if I’m missing anything