Author Topic: Investing vs debt  (Read 2102 times)

duckfeetin

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Investing vs debt
« on: June 03, 2016, 06:03:05 PM »
I am sure its been asked before, so i apologize if this is redunant.

How much investing should i be doing? I just started the MMM life a month ago. My husband isnt on board so i am not saving as much I would like.

Here is the shameless basics.
3k left in student loans (want to pay this off before mid fall)
88k left to pay on the mortgage.
No car payment.
Should i be investing or just throwing money down into the pit of my debt?
I barely work part time as a freelance writer, full time sahm. He is fulltime. Together we make just under 75k a year. We are both in our early 30s.

PhysicianOnFIRE

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Re: Investing vs debt
« Reply #1 on: June 03, 2016, 06:19:27 PM »
Both.

It sounds like you both have jobs. If you have a 401(k) and a match, try to invest enough to get the match, and make Roth contributions if possible, as you are in a low tax bracket (15%).  How high is the interest on the student loans? That might be a good debt to retire. I wouldn't be in a hurry on the mortgage.

Good luck!
-PoF

Villanelle

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Re: Investing vs debt
« Reply #2 on: June 03, 2016, 06:57:00 PM »
What is your interest rate on the mortgage?  In your shoes, I would most likely pay off the student loan and then invest everything, if your only other debt is mortgage (because the interest rate on that is likely pretty low). 

duckfeetin

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Re: Investing vs debt
« Reply #3 on: June 03, 2016, 07:05:25 PM »
Both debts are in my husbands name. Both are painfull at about 6% he applied when his credit wasnt well etablished. We didnt get the best rate.I don't think refinancing is an option.   Any change (even for the better) can make him very nervous. So the interest rate is kind of brutal and stuck there.  I mean he can barely handle when i replace carpet, lol

Jim2001

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Re: Investing vs debt
« Reply #4 on: June 03, 2016, 07:34:06 PM »
Take a look at http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/ and consider putting up the other details about your situation.  In lieu of that, my advice to friends and family who have asked is, if you wait until all the debts are paid off to start investing, it may never happen.  Establishing a small emergency fund is a good place to start, then start looking at investing.  As others have said, if there is any match at work, jump on that ASAP.  The rest is tough without more info.

Vagabond76

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Re: Investing vs debt
« Reply #5 on: June 04, 2016, 07:38:00 AM »
Repay the student loan and mortgage down to 80% LTV, then refi the mortgage once the S/L payoff clears the credit report. Unless his and your credit is shot or the house appraises for less than $110,000, you should qualify for something less than 6%. For that kind of balance you don't need to consider the mortgage deduction.

ender

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Re: Investing vs debt
« Reply #6 on: June 04, 2016, 10:23:06 AM »
I am sure its been asked before, so i apologize if this is redunant.

How much investing should i be doing? I just started the MMM life a month ago. My husband isnt on board so i am not saving as much I would like.

Here is the shameless basics.
3k left in student loans (want to pay this off before mid fall)
88k left to pay on the mortgage.
No car payment.
Should i be investing or just throwing money down into the pit of my debt?
I barely work part time as a freelance writer, full time sahm. He is fulltime. Together we make just under 75k a year. We are both in our early 30s.

Is your husband more on board with paying off debt?

In some cases, it's far better to pay off debt than invest because it means a spouse will be on board. If your spouse is not interested in investing but paying down the debt that can be a good way to still build net worth.