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Started By
Message
Finances for Newly Wed
Posted on 4/29/19 at 5:20 pm
Posted on 4/29/19 at 5:20 pm
(no message)
This post was edited on 7/15/21 at 8:22 am
Posted on 4/29/19 at 5:23 pm to blackoutdore
quote:
45% me and 55% her
Posted on 4/29/19 at 5:45 pm to blackoutdore
quote:
I have a MBA with a finance concentration
quote:
What all do I need to get us set-up financially?
Most of what you're asking for is specific to your personal situation and preferences.
In terms of objective advice, you should (1) pay off the credit card debt asap, (2) save up a 6-month emergency fund sufficient to cover normal spending and both of your student loan payments during that time, and (3) refinance the student loan debt, assuming your credit scores are respectable. Then, start contributing to retirement/personal investments.
Posted on 4/29/19 at 6:14 pm to blackoutdore
Pay off high interest debt first. Most likely your CCs, then your cars, then your student loans. Don’t ignore her aunt’s money either, that would be taking advantage of your family, and you don’t want that
I’d shoot for paying off everything in 10 years, but you could easily do it in 5. That’s very doable with your income, your estimated tax bracket, and projecting that you’ll want to buy a house and probably have a kid or two. And that’s considering your income as flat, which it probably won’t be, as you stated
If I were you, I’d put all of our money together in one joint account, and agree to ask the other person if you spend more than a certain amount on one purchase, and same if you spend more than a certain amount total every month on unnecessary purchases. Basically if you buy a set of golf clubs, you ask her. If she buys 5 pairs of shoes over a month, she asks you. Some people buy a lot of small things, so that’s a way to manage small purchases in large quantities or few big purchases
Budget for everything before the month begins, and review your bills when the month ends. This is a good to manage your financial expectations, make sure you’re hitting your goals, encourage saving, and make sure no one stole your credit card and you didn’t realize it. Reviewing bills together makes it easier to have discussions like “hey honey can you turn off some lights before you leave for work today”
I’d shoot for paying off everything in 10 years, but you could easily do it in 5. That’s very doable with your income, your estimated tax bracket, and projecting that you’ll want to buy a house and probably have a kid or two. And that’s considering your income as flat, which it probably won’t be, as you stated
If I were you, I’d put all of our money together in one joint account, and agree to ask the other person if you spend more than a certain amount on one purchase, and same if you spend more than a certain amount total every month on unnecessary purchases. Basically if you buy a set of golf clubs, you ask her. If she buys 5 pairs of shoes over a month, she asks you. Some people buy a lot of small things, so that’s a way to manage small purchases in large quantities or few big purchases
Budget for everything before the month begins, and review your bills when the month ends. This is a good to manage your financial expectations, make sure you’re hitting your goals, encourage saving, and make sure no one stole your credit card and you didn’t realize it. Reviewing bills together makes it easier to have discussions like “hey honey can you turn off some lights before you leave for work today”
Posted on 4/29/19 at 6:27 pm to Upperdecker
You have an MBA related to finance and you're asking those questions
Posted on 4/29/19 at 6:49 pm to blackoutdore
Go to whitecoatinvestor.com
There have a forum where you can ask the same questions. Plenty of people there willing to help that have both high incomes and have paid or are paying off substantial educational debt.
There have a forum where you can ask the same questions. Plenty of people there willing to help that have both high incomes and have paid or are paying off substantial educational debt.
Posted on 4/29/19 at 6:55 pm to jralspanky
Just to be fair I also have a degree in finance with a high gpa and can say I did not have any personal finance or financial planning courses so just because you know corporate finance etc doesn’t mean you know specifically personal finance to navigate the best ways to manage your money
Posted on 4/29/19 at 8:00 pm to BeaumontBengal
quote:
whitecoatinvestor.com
This. Its geared towards doctors, but it's a fantastic source for high income individuals who have limited knowledge of personal finance.
Posted on 4/29/19 at 8:05 pm to blackoutdore
quote:
6) Credit - anyone have a preferred credit card. We'll need to furnish our rental property and I'll have substantial cash flow when I start working and my signing bonus hits. I'm thinking a 12-month 0 interest to get things going and then immediately pay off when salary/bonus comes in. Also interested in a travel card in the future
Most chain furniture stores offer 12-24 month no interest. I’d go that route for your furniture.
Posted on 4/29/19 at 8:08 pm to blackoutdore
Shoulda been a welder for SWAT to avoid any student loan debt. $40+ an hour and double time not time and a half.
Posted on 4/29/19 at 8:42 pm to blackoutdore
I was just coming to tell you to go to white coat investor. You have got to learn to live like a resident as they will say over there. I spend a good bit of time over there.
I'm gonna sound like a dick, but I'm going to be frank and honest. This is how I treat myself and our path to debt elimination and hopefully early retirement.
Are both of you on the same financial journey? I think you should both have a joint account.
You have golf clubs already? I doubt you need new ones. My buddy was a pro at a golf course and had the same clubs for 10'ish years. You could do without for a few years.
One account, a tight budget, and some slight room for miscellaneous expenses. You should be able to get this honed in within 4-5 months of spending.
$300k is a decent amount of debt. 10 years amortized won't be too bad. We had $248k. It fricking sucks but you get through it. Ours is a little more aggressive. We pay $2,510 a month, it balloons in Nov 2020, we'll pay $100k, refinance for two years, but I should pay it off by Jan of 2022.
Someone needs to ride that accord until the friggin wheels fall off. Trade in that MDX for another used, affordable car. You guys aren't ballers yet. Be frugal.
Ameritas has really good DI with great rider options that go up with salary. My wife had it from residency through fellowship and now as a sub-specialist.
How much CC debt are we talking here? Rate on that?
We'll come back to retirement stuff after we know the Cc debt amount.
Is your wife a partner or just staff? W-2, K-1, or 1099 employed? That could dictate a lot of routes you could take re: retirement vehicles.
$2,800/month rent. What in the hell are you renting? A 3,000 sq. ft. house or some brand new, swanky condo on the battery? You need to rent for a few years and seriously look for something more affordable. Maybe I'm out of touch, but we have a 2,200 sq. ft. house in Metairie and our mortgage is $1,467 a month. Physician lonas tend to have slightly higher interest rates I think. WCI has lots of posts on that.
The credit card you need is not having one. You need to buy things as you can afford them and the original CC debt is gone or greatly reduced.
You don't need a 529 plan. You don't have a kid. What if you can't have kids. You have bigger priorities right now, will have substantial income, and little debt eventually. They'll be fine and they'll live if they have a little skin in the game.
I'm gonna sound like a dick, but I'm going to be frank and honest. This is how I treat myself and our path to debt elimination and hopefully early retirement.
Are both of you on the same financial journey? I think you should both have a joint account.
You have golf clubs already? I doubt you need new ones. My buddy was a pro at a golf course and had the same clubs for 10'ish years. You could do without for a few years.
One account, a tight budget, and some slight room for miscellaneous expenses. You should be able to get this honed in within 4-5 months of spending.
$300k is a decent amount of debt. 10 years amortized won't be too bad. We had $248k. It fricking sucks but you get through it. Ours is a little more aggressive. We pay $2,510 a month, it balloons in Nov 2020, we'll pay $100k, refinance for two years, but I should pay it off by Jan of 2022.
Someone needs to ride that accord until the friggin wheels fall off. Trade in that MDX for another used, affordable car. You guys aren't ballers yet. Be frugal.
Ameritas has really good DI with great rider options that go up with salary. My wife had it from residency through fellowship and now as a sub-specialist.
How much CC debt are we talking here? Rate on that?
We'll come back to retirement stuff after we know the Cc debt amount.
Is your wife a partner or just staff? W-2, K-1, or 1099 employed? That could dictate a lot of routes you could take re: retirement vehicles.
$2,800/month rent. What in the hell are you renting? A 3,000 sq. ft. house or some brand new, swanky condo on the battery? You need to rent for a few years and seriously look for something more affordable. Maybe I'm out of touch, but we have a 2,200 sq. ft. house in Metairie and our mortgage is $1,467 a month. Physician lonas tend to have slightly higher interest rates I think. WCI has lots of posts on that.
The credit card you need is not having one. You need to buy things as you can afford them and the original CC debt is gone or greatly reduced.
You don't need a 529 plan. You don't have a kid. What if you can't have kids. You have bigger priorities right now, will have substantial income, and little debt eventually. They'll be fine and they'll live if they have a little skin in the game.
This post was edited on 4/29/19 at 8:54 pm
Posted on 4/29/19 at 8:59 pm to TheWiz
I mean they are bringing home $250K they can afford a $2800/mo rental
Posted on 4/29/19 at 9:09 pm to hiltacular
quote:
I mean they are bringing home $250K they can afford a $2800/mo rental
They're not though. Factor in their student loan and TBD credit card debt and they're saddled with some pretty big negatives right out of the gate.
I'm just saying, that seems like a shite load for rent. Is there really nothing reasonable for $1,500-$1,800? They rent for three to four years and potentially eliminate $36k-$48k in student loan debt that much sooner.
Posted on 4/29/19 at 9:20 pm to jralspanky
quote:
You have an MBA related to finance and you're asking those questions
It’s pretty smart of him to identify his lack of knowledge in an area, and seek help/opinions on it, rather than assume a paper degree automatically makes him an expert
Sometime is not knowing the answer, but knowing where to find the answer
Posted on 4/29/19 at 9:59 pm to hiltacular
Federal taxes, state income taxes, and potentially city taxes can make that $250k go quick with all of their extra expenses.
OP -- sounds like you need to cut down on some of your big expenses. Almost $6k a month just for housing/student loans is insanity.
OP -- sounds like you need to cut down on some of your big expenses. Almost $6k a month just for housing/student loans is insanity.
Posted on 4/29/19 at 10:33 pm to TheWiz
quote:
TheWiz
Great post.
Echoing this sentiment...you need to provide details on:
1) How much credit card debt? This will likely change the entire course of a recommendation. Highly expect you will need to pay this off immediately and delay almost everything else (e.g., pay minimums on everything else, get a 100% 401k match, and the rest of the dollars go towards paying credit cards down).
2) $2,800 for rent? Are you crazy? Literally said when I read that. You don't have kids yet - you can almost certainly find a very nice apartment for $1,500 or so a month and save the delta (or pay off more of the CC debt).
$200-300K in student loans is honestly not a big deal when you are DINKs (dual income no kids) earning relatively high incomes, especially for your age. You could pay off $75K a year in student debt and be done with it in a few years. It won't be a 'fun' time but I generally find people with student debt like to complain about it (and borderline draw attention to it).
Posted on 4/29/19 at 10:40 pm to TheWiz
Everything Wiz posted is good advice. While you have a substantial enough income to survive the mountain of debt you have accumulated, if you don't sacrifice now for several years to mostly eliminate that debt, it will significantly restrict your freedom to make more important choices down the line.
With that debt load, you may find yourselves stuck on career paths that make you unhappy and strain your marriage. Your wife may want to go out on her own in a few years. That will require substantial capital for office space, equipment and initial overhead. Children have a way of altering plans as well. Not to mention sometimes things just don't work out with employment. Not aggressively attacking that debt while you are DINKs would be a huge missed opportunity that will significantly limit your options in the future.
You could pay that debt off with your income in 5 years if you made it a priority. Think of the opportunity and freedom you would have with little to no debt/payments and $350k in annual income before you turn 35.
It's a lot easier for me to say than it will be for you to do, but I guarantee you won't regret it if you do it.
With that debt load, you may find yourselves stuck on career paths that make you unhappy and strain your marriage. Your wife may want to go out on her own in a few years. That will require substantial capital for office space, equipment and initial overhead. Children have a way of altering plans as well. Not to mention sometimes things just don't work out with employment. Not aggressively attacking that debt while you are DINKs would be a huge missed opportunity that will significantly limit your options in the future.
You could pay that debt off with your income in 5 years if you made it a priority. Think of the opportunity and freedom you would have with little to no debt/payments and $350k in annual income before you turn 35.
It's a lot easier for me to say than it will be for you to do, but I guarantee you won't regret it if you do it.
This post was edited on 4/29/19 at 10:43 pm
Posted on 4/29/19 at 10:59 pm to PearlJam
I assume the OP has accepted a job offer already and has that number included in the scenario and it’s not just a projection ??? Charleston isn’t a city with a lot of industry so I hope that is the case.
Posted on 4/30/19 at 5:30 am to blackoutdore
If you “pay yourself first”, you will be fine.
Maximize your retirement accounts.
Pay off the debt as quickly as you can because interest never takes a holiday.
As long as you are spending less than you make after saving for retirement, I would not sweat shoes or clubs. At the end of the day, you are working for your future self so make sure you put lots away for retirement. Also, after kids she may cut back her work schedule to spend more time with the kids. Live on one income. It makes it easier when the kids come.
As far as saving for college, if you still have money after maximizing retirement, it’s a great idea. You will eventually not be able to work. Your kids may get scholarships,join the military, etc.
Maximize your retirement accounts.
Pay off the debt as quickly as you can because interest never takes a holiday.
As long as you are spending less than you make after saving for retirement, I would not sweat shoes or clubs. At the end of the day, you are working for your future self so make sure you put lots away for retirement. Also, after kids she may cut back her work schedule to spend more time with the kids. Live on one income. It makes it easier when the kids come.
As far as saving for college, if you still have money after maximizing retirement, it’s a great idea. You will eventually not be able to work. Your kids may get scholarships,join the military, etc.
Posted on 4/30/19 at 5:57 am to TheWiz
Now that I read the replies, I realize I glanced over the OP and missed a lot of weird details. Like a $2800 per month rent
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