With $80K cash in a savings account doing literally next to nothing and a gross monthly income of over $20K/month, what department store CC could you possibly truly need to carry any balance on?

Not trying to poke holes in your story but that makes zero sense. Pay it off and get rid of any department store CC’s. If you have miles or cash back deals a few would be helpful I’m sure. I personally don’t have any but I get that they have their uses. For you I don’t understand them due to your monthly income.

Your car notes are atrocious to me. But in context they’re tolerable based on DTI. I would just never pay for an everyday driver that wasn’t like a work truck of some type and spend that on a note. But your income bails you out of what appears to be potential vanity purchases.

What’s worrisome is that you say that your income bumps have been recent developments at work. So you either already had huge car notes before you could really justify or you couldn’t wait to run out and choke down some pretty big notes. Maybe there’s not enough info to confirm, but it seems like you are running up debt with the quickness.

Anyway...if I were you (remember I’m not)...

1.) Pay off student debt
2.) Pay off all CC’s
3.) Pay off cars
4.) Max out retirement contributions at work & with IRA/whatever (offset by no notes on autos/CC/student loans).
5.) Make plan for expected bonuses next year.
6.) Plan a badass vacay as a part of #5

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Posted by tigereye58

Member since Jan 2007

2669 posts

Posted on 4/15/18 at 8:39 am to GFunk

quote:
1.) Pay off student debt 2.) Pay off all CC’s 3.) Pay off cars 4.) Max out retirement contributions at work & with IRA/whatever (offset by no notes on autos/CC/student loans). 5.) Make plan for expected bonuses next year. 6.) Plan a badass vacay as a part of #5

This exact thing but for the cars I’d pay yours off with cash and the wife’s by doubling the monthly note. Then I’d build your cash back up to 60-120k and put it in multiple money markets. It sounds like you and your wife do really well but never underestimate volatility at some point will hit unless you have incredibly stable career paths which I’m not sure even exist. There will come a time when your going to need some cash if you change jobs or lose a job.

Lastly, once that’s done start investing in some income replacement type options. Duplex’s, rents houses etc.

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