Hi all,
I am new to the MMM but have always been a relatively frugal person, and as an engineer I understand numbers and math well enough to understand the potential.
I am recently married and we are living with my wife's parents renting a room for 500$/mo to give us the opportunity to save towards a house in the near future. Our take home income (after 401k contributions) is about 5k$/mo of which we spend 2k$/mo on all expenses, 2.6k$/mo to house savings (currently at 20k$), 400$/mo to travel savings (We made an agreement to include saving for regular traveling as we want to tour the world so to speak). We have no debts, car, or school loans at this time. We are mid to late twenties with no plans for children, total pretax pay is 111k$/yr (60k$/yr take home - post current 401k contributions) and we are living in southern california, with a dog and cat.
We are planning to move to the greater seattle area as I am hoping to attend the University of Washington (UW) to pursue a PhD, and we would like to buy a small home for the time that we will live there. During this time, our income will be dramatically less, assuming my wife brings home comparable pay to her current job, total pretax pay will likely be 52-56k$/yr. We are planning to find a home in the 180-220k range that will have a small yard to support the dog. We will have the VA home loan as an option as I am a veteran as well, which should help with acquiring the home with a low down.
I very much like the idea of the MMM early retirement strategy, though I understand I will likely slow my progress while pursuing my PhD, but that is something I am not willing to compromise. We feel constrained in our options for housing due to the dog, as it is hard to find a bargain home with a yard in our price range (we have looked extensively in so cal... one of the driving reasons I am looking towards UW for graduate school is lower comparative COL, plus friends and family in the area). Is it reasonable to consider purchasing a home under these conditions? Prior to moving in with the in-laws we rented an apartment with the dog and the no-yard route has been ruled a non-option after that experience.
Also, while my wife generally agrees with & supports my saving/financial strategies, I am not sure I would get her support to living this lifestyle. Any tips on getting your spouse to buy-in on this concept? My wife is not bad at managing her spending, but she does like travel (me too) & having things (been pushing for new car for a year, though she has a 2007 Yaris that is in great shape - my car is a 1997 in good shape as well) and I know she already feels like I push to save too much already....
Anyhow, the house decision is a big one and not somewhere I want to make a significant mistake on as it can have huge long term consequences for our financial freedom/ stability. I know I have a lot to learn on managing the finances to give us freedom in the future, and welcome advice and comments.
Thank you for taking the time to read my ramblings... help and guidance is much appreciated!
- Matt