My wife and I are both financially ignorant, but like everyone else, want to become financially independent as soon as possible. While I think we have decent financial habits, we want to do all we can in the coming years to set us up for success. I just finished reading my first financial book Rich dad, poor dad and am moving on to my second - The Intelligent Investor.
Essentially all our discretionary income after regular expenses / fun expenses has been going to pay off my wifes loans, and we have knocked out about $20,000 in the past year. We do spend quite a bit on fun as well (snowboarding, golf, eating out, mountain bikes, vacations etc.), and while we want to continue doing these things we want to be more aware of how much we are spending.
We try to maintain a cash balance of $15k-$25k, and when it is higher near $25k, we dump some money into the student loans. We are on the cusp of dramatically increasing our earning potential one year from now (increase $50-$75k) as she is finishing a medical residency.
My immediate plan is simple: Increase my Financial IQ as much as I can over the next year while continuing to pay off our debts as much as possible. I also want to dabble in some small investments as more of a learning opportunity than anything no idea where to start here yet.
Any input / advice on our current situation would be greatly appreciated. Thanks!
Personal Info:
Me: 30 years old, ~ 5 years into engineering career
Her: 29 years, graduated pharmacy school last year, just starting 2nd year residency.
Income:
My Salary: $85,000 / year
Her Salary: $56,000 / year (To be increasing to ~$100k-140k / year in one year)
Combined after deductions (retirement, insurance, taxes, etc.): $6,746 / month, $81,168 / year
Expenses:
Mortgage: $900 / month
Cell Phones: $125 / month
Student Loans min payment: $1000 / month
Car Loan: $400 / month
Vehicle Insurance: $125 / month
Gas: $100 / month
Food: $500 / month
Dining out / fun / stuff: $1500 / month? Varies
Total Expenses: $4,650
Assets:
Cash / Emergency Fund: $16,347
House: $240,000
Vehicles: $33,000
IRA: $6,028
Roth IRA: $38,702
Simple IRA: $14,493
401k: $9,176
Total Assets: $357,746
Liabilities:
Mortgage: $122,316 @ 3.875%
Car Loan: $20,205 @ 3.49%
Student Loans: $86,645 @ Interest rates below
o $18,996 @ 6.55%
o $20,130 @ 5.96%
o $17,205 @ 5.59%
o $2,545 @ 5.35%
o $19,111 @ 5.16%
o $4,334 @ 4.25%
o $4,324 @ 3.15%
Total Liabilities: $229,166
Net Worth: $357,746 - $229,166 = $128,580
Thanks again!