Hello everyone! I’m looking for advice regarding some financial planning over the next 10 years.
I am 27 years old making approximately $140,000 USD (salary). My take home after taxes approximately $6,750 a month.
My company offers a 401k and a profit sharing plan. I am NOT currently contributing to my 401k due to my expenses and short term savings goals. My company doesn't match until year 6 and I am currently in year 2.
MONTHLY EXPENSES 2,124 student loans (5% interest rate - at this pace, will be paid off in 6 and a half years.) 1000 ally account 825 rent 800 wedding expenses (paying until 10/2019) 100 cell phone 380 car payment + car insurance (lease) 7.5 spotify 25 sling 42 internet 40-50 electric bill 100 paying off furniture recently financed (another 7 months to go) Probably another 200 on groceries/dog food.
I have no credit card debt.
Approximately 25k in savings as emergency fund (ally bank I believe 1.6% interest)
Yes my wedding will be expensive but that's kinda the way it is around here unless we eloped and that just isn't on the table.
The above expenses do not include any “fun” money, such as vacations or gifts or dinners, etc.
My fiance (100k salary) also has approximately $140,000 of student loans with a similar interest rate as I do.
My original wish was to own a home by 31ish as we will likely want to start a family somewhere around there. I live in a very high COL area (home taxes usually about 15k yearly) and will likely need approximately $100k to put down 20% on a somewhat decent home. I think this will likely have to go on the back burner and will likely continue to rent until my loans are paid off so we can live comfortably.
I keep going back in forth in my head on what to do with my income. Part of me wants to just tackle my student loans, then the other part of me stresses myself out that if I did that I won't be contributing to retirement for at least another 5 years which would make me 32. At that point I can easily max out a 401k or what not.
I've done a lot of reading and I keep seeing this is a difficulty situation for a lot of millenials. My wedding expense ($800) gets freed up next September 2019 and could definitely do some damage combining that and my monthly $1000 to Ally. But I'd love to hear what you guys think as I really need some guidance.
Would it be wiser to attempt to max out my 401k after the wedding or tackle my student loans and try to get them paid as quickly as possible? Or do a bit of both and do some sort of hybrid game plan? I do not want to fall behind on retirement and I don't want to be a struggling home owner so I wanted to reach out to you experts. Thanks all!
Submitted August 15, 2018 at 11:45PM by gamma-nail https://ift.tt/2vHtrh5
