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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
11
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 6:49 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 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 4/30/19 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 8:03 am to blackoutdore
You have a lot of personal preference decisions to make.
The only thing I can advise for young married couples is to establish your monthly set expenses such that you can live on one salary. You never know when someone might get laid off but you also never know when someone might want to stay home if you have kids.
It is very sad for me personally to see a family that can't afford to have a parent stay home that really wants to. Your kids are so much better off when a parent stays home.
If you budget that way, you will have a LOT of discretionary budget to enjoy every month until someone does decide to stay home.
Take my opinion with a grain of salt. I'm an engineer so I'm naturally inclined to mitigate risk and protect the well being of folks. My level of acceptable risk is much lower than the finance folks.
The only thing I can advise for young married couples is to establish your monthly set expenses such that you can live on one salary. You never know when someone might get laid off but you also never know when someone might want to stay home if you have kids.
It is very sad for me personally to see a family that can't afford to have a parent stay home that really wants to. Your kids are so much better off when a parent stays home.
If you budget that way, you will have a LOT of discretionary budget to enjoy every month until someone does decide to stay home.
Take my opinion with a grain of salt. I'm an engineer so I'm naturally inclined to mitigate risk and protect the well being of folks. My level of acceptable risk is much lower than the finance folks.
Posted on 4/30/19 at 9:47 am to blackoutdore
quote:Where are you OP
blackoutdore
You're on your way to being this guy!
This post was edited on 4/30/19 at 9:50 am
Posted on 4/30/19 at 10:07 am to blackoutdore
So doing some quick math at $140k each and assuming you each contribute $19,000 to a 401k....
Net Pay: +/- $7,400 x 2 = $14,800
Annual Net Pay $14,800 x 12 = $177,600
Less $12k to backdoor Roths = $165,600
Less $33,600 for $2,800/month rent = $132,000
Less $44,400 for $3,700/month Student Loans = $87600
Let's assume you spend $3,500/month on everyday stuff including a $300/month used car note, $200/month dining out, $600/month groceries. You may spend way more on those three things I mentioned. Just hypo. numbers.
Less $42,000/month for the above mentioned = $45,600 annual savings.
Less the unknown credit card debt ??????
You need to build up an emergency fund somewhere in the ballpark of $20,000-$30,000. Just going off of six to nine months of hypothetical living expenses for that.
You have some real opportunities to pay down the credit card debt very quickly, then pay off that car, and then pay off those student loans even faster.
Just looking at an amortization table, you could have your $200k loan balance down to $80k'ish by the end of 2025. I assume that you could and should have enough cash socked away by then to completely eliminate the student loans. Again, I don't know if you have $12k in credit card debt or $42k.
So by living like a "resident" "frugal couple" whatever you want to call it for a few years, you could have projected net income back north of $100k. That sets you up pretty nicely to save for that forever home. The ability to afford a nanny (that's $3,000/month
)for a hypothetical kid then and/or day care.
You guys are also going to need to explore different retirement vehicles, but definitely just focus on maxing your pre-tax and Roth IRA for now. Will you have other retirement options?
Net Pay: +/- $7,400 x 2 = $14,800
Annual Net Pay $14,800 x 12 = $177,600
Less $12k to backdoor Roths = $165,600
Less $33,600 for $2,800/month rent = $132,000
Less $44,400 for $3,700/month Student Loans = $87600
Let's assume you spend $3,500/month on everyday stuff including a $300/month used car note, $200/month dining out, $600/month groceries. You may spend way more on those three things I mentioned. Just hypo. numbers.
Less $42,000/month for the above mentioned = $45,600 annual savings.
Less the unknown credit card debt ??????
You need to build up an emergency fund somewhere in the ballpark of $20,000-$30,000. Just going off of six to nine months of hypothetical living expenses for that.
You have some real opportunities to pay down the credit card debt very quickly, then pay off that car, and then pay off those student loans even faster.
Just looking at an amortization table, you could have your $200k loan balance down to $80k'ish by the end of 2025. I assume that you could and should have enough cash socked away by then to completely eliminate the student loans. Again, I don't know if you have $12k in credit card debt or $42k.
So by living like a "resident" "frugal couple" whatever you want to call it for a few years, you could have projected net income back north of $100k. That sets you up pretty nicely to save for that forever home. The ability to afford a nanny (that's $3,000/month
)for a hypothetical kid then and/or day care. You guys are also going to need to explore different retirement vehicles, but definitely just focus on maxing your pre-tax and Roth IRA for now. Will you have other retirement options?
This post was edited on 4/30/19 at 10:14 am
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