Hey PF, I'm seeking some mentorship in regards to personal finances for my wife and I. First I will start with some background information.
I'm 26 and in the military. I'm an E5 paygrade and have a NET income of $4000 a month.
My wife is 23, has a bachelors in hotel management and makes $16.50 an hour as an assistant manager in a hotel. She averages 15-25 hours of overtime per pay period and pulls in ~$2700 a month, sometimes more, sometimes less. That is the average. She currently has great upward mobility.
I joined the military with $20,000 of college debt and no degree to show for it. I had 3 accounts in collections as well. All of that has been paid in full.
My current credit score: 650
Her score: No credit history (She moved to USA 2 years ago)
We have a stable monthly NET income of $6700 a month. We currently have $20,000 in the bank. Just sitting in a checking account.
Debts: I owe $19,000 on my car, 5 year 6% interest loan.
Monthly Expenses:
Rent - $1400
Car payment- $368
Car Insurance - $225
Gas - $200
Braces (12 months left) - $200, (no interest)
Phones - $180
Utilities - $120
Puppies (Food, insurance, other) - ~$60
Subscriptions (Netfllix, Prime, Spotify) - $40
Car maintenance - ~$50
Internet - $60
Flexible misc spending budget (dates, entertainment) - $400
Total monthly expenses: $3550
Total NET income after expenses: $3150
My car expenses are very high. I commute 120 miles per day. There are no hotels near my work. We chose a location that is a 5 minute walk for my wife to get to work. So she has no travel expenses at least. Rent is also high, because we chose an apartment in the heart of the city by her work.
In April of 2020 I will finish my contract with the military. I'm enrolled in a Military Microsoft Academy during the final 6 months of my contract that guarantees an interview in Seattle with Microsoft to work as a Cloud Systems Developer with a starting salary of ~$80,000. If that works out awesome. But I need to plan for if it doesn't.
Based off of our current budget plan, I should leave the military with ~$70,000 saved as long as we stick to the current budget, and nothing crazy or extreme happens. I would definitely pay off my car. Leaving my ETS goal at ~$50,000 debt free, but with no retirement whatsoever.
Neither one of us have any type of retirement. How should we allocate our funds to set up for a more secure future? I want to ensure we have a solid emergency fund for when I become unemployed and go back to school.
My NET income will drop from $4000 a month to $2400 while I attend university. All tuition, fees, and books will be covered by the GI Bill.
We have no immediate plans for children or purchasing a home. Those would be 5 years out minimum.
Any advice, mentoring, or input would be much appreciated!
Submitted October 04, 2018 at 06:44AM by _Heartshot_ https://ift.tt/2PbxpX4
