A little about me:
I am a 28 year old who will be transitioning from active duty military to civilian in June of 2019 (14 months from now). I am married to a 25 year old and we have no kids. I will be a full time college student for the first two years I am out of the military. My wife and I will be holding our ceremonial wedding in Mexico in June of 2018. We are using roughly 90% of our savings to do this wedding. I know this isn't the most financially savvy thing to do but it will be happening. Our goal is to recapture 18,000 in savings within the next 14 months, which I believe is completely doable. When I transition out I will be making 4300 dollars a month tax free from school and potentially additional money from rent or any form of military disability I may receive (although I am not counting on it). My financial breakdown is below.
Income: (average based on previous 12 months)
5557.52 a month from me 2618.74 from my wife
1050.00 + utilities in rental income
Monthly income is roughly 9,200.
We currently have 15,474 dollars saved up for this and will have an estimated 20,000 dollars for it by the time of the wedding. I expect 3,000 in our savings after the wedding is said and done.
We have 13,630 dollars in credit card debt 11,500 on a credit card with 0% APR (entirety of active duty- new APR will be given upon discharge) I plan to switch this over to my 10.9 APR credit card upon discharge and take the additional year of 0% APR that my credit card offers. Remaining 2k has a 10.9% APR
23,210.37 in Loans 10K on car loan at 2.99% 3.5K on wife student loan 5.99% 9.5K on another student loan for wife 6.99%
We own a house and pay 2182 per month (174 extra towards principal for an extra full payment per year) We were putting 900 a month towards ROTH IRA (450 each) but have dropped it 200 a month (minimums) to increase savings and pay off debt for the next 14 months. We are going to raise numbers back up after discharge. We both have 200k life insurance polices 200 a month for me 150 for her.
My expected income for the next 14 months (including bonuses, military leave "buyback," etc.) is 150k and our rough idea of expenditures is 118k. This leaves us with around 34k in money that has no real "purpose." I would say 18,000 of that is lump sum money we will be getting from now until we get out of the Navy.
Monthly break down looks roughly like this:
1st: 4900 spending Life Insurance- 200 Utilities (TV, internet, gas, electric, trash, water, sewage, and ADT)- 600 IRA- 100 Mortgage- 2182 Spotify- 5 Gas- 220 Food- 400 Savings- 800 "Allowance for us"- 400 (200 each)
15th: 3692 spending Student Loan- 50 Car- 450 Car- 400 Apple- 16 Credit Monitor- 14 Credit Card- Varies (but typically 250) Student Loan- 300 Phone- 157 IRA- 200 Car Insurance- 220 Audible- 15 Food- 400 Life Insurance- 150 Gas- 220 "Allowance" for us- 400 (200 each) Savings- 450
We allow for about 500 dollars a paycheck that has no purpose. This is usually for in case something happens. We tend to spend this money on house improvements or random needs (new tires, oil change, etc.)
I am hoping someone can take a look at everything I have presented here and give me advice on how to redirect money for optimal savings. Give me ideas about how realistic this plan is. We expect to have one credit card paid off and one student loan paid off by the time we get out. Any constructive advice would be appreciated. Thank you!
Submitted March 25, 2018 at 03:34PM by TA_Navy https://ift.tt/2IOUZpC
