Hi folks, looking for some insights from some financially savvy professionals. I can't say we have always made the best choices, but now that we have more money we want to get things on track.
My husband and I are 29 years old. My salary increased by 51% in the last year due to a new job and then later merit raise, so this income level is new for us. Our combined income now is $123k.
We have a mortgage : $1095/mo because when we bought the house we didn't have enough for the down payment (PMI)
I have student loan debt : $90k for my MBA, all federal loans with low rates. It's on a graduated income-based payment plan
We have short-term loan debt : $16k from a wedding and some unexpected medical bills that happened when we were not making much money. They're on a payment plan to be paid off in 3 years.
Credit card debt: $3k. We purchase things and pay off this debt quickly, and I have an excellent credit score.
In terms of assets, we have around 10k in an investment account, 8k in cash in our savings, and around 10k combined in 401ks.
No car payments right now, but we will likely end up needing a vehicle replaced within a year.
And we are expecting our first child in about a month. My deductible means about 3k in medical bills will be coming from this.
My goals : Pay off debts in the most effective way, develop a safety net of liquid cash, maximize our retirement, and have enough discretionary income to pay for private school when it's time.
So what should I tackle first? Do I pay off all debts first, then work on retirement and savings? When should I move our liquid savings (8k) to the retirement account? I'd like to keep some liquid cash at all times.
Thanks for any insights you might have.
Submitted July 15, 2018 at 12:16PM by kateye389 https://ift.tt/2Jo7yra
