Hello PF, to get straight to the point, my spouse and I have expressed to each other that we need to take control of our finances before it gets any worse. We have a baby on the way and would like to ensure we can provide a better life for our child. It sucks that we are in this position, but at least we're on the same page about tackling our debts together.
Some background info:
- We live in Southern California
- Moved back to my parent's house
- Spouse is currently getting her Master's (1 year left)
- We both have full-time jobs
- Cars are paid off
- $99k in debt ($35k student loans, $13k personal loan, $50k CC debt)
- $1k in savings
- Credit scores are 650s and 700s (good standing with each line but high credit usage)
| Income | Monthly Amount | Notes | |
|---|---|---|---|
| Spouse | $4,500 | Net Paid Monthly | |
| Me | $2,600 | $1,300 Net Paid Bi-Weekly; After 4% Contribution to 401k which company matches $ for $ | |
| Expenses | Rent | $500 | |
| Cell Phone | $130 | 2 Finance Payments left | |
| Car Insurance | $200 | ||
| Gas | $550 | ||
| Term Life Insurance | $60 | ||
| Groceries and Household Items | $100-300 | Is this too much for 2 people in Southern California? | |
| Gym | $120 | ||
| Spotify | $5 | ||
| Personal Care | $200 | Haircut, nails, and/or massages I put aside each month. Some months we only spend $100. Some we spend $200 + what's left over | |
| Credit Cards / LOC / Personal Loan | Minimum Payment | Balance / Rate | |
| Credit Card #1 | $80 | $5,400 / 12.70% | |
| Credit Card #2 | $500 | $17,900 / 17.99% | |
| Credit Card #3 | $400 | $16,000 / 12.99% | |
| Line of Credit | $235 | $11,000 / 10.99% | |
| Personal Loan | $427.62 | $13,000 / 8.70% | |
| Student Loans | All rates are fixed and are gov't loans | ||
| Fall 2013 Subsidized | $60.23 | $5,755 / 3.86% | |
| Fall 2013 Unsubsidized | $30.13 | $2,909 / 3.86% | |
| Summer 2014 Unsubsidized | $23.58 | $2,276 / 3.86% | |
| Spring 2015 Subsidized | $56.29 | $5,235 / 4.66% | |
| Spring 2015 Unsubsidized | $55.86 | $5,195 / 4.66% | |
| Fall 2016 Subsidized | $57.42 | $5,566 / 3.76% | |
| Fall 2016 Unsubsidized | $76.02 | $7,368.12 / 3.76% | |
| Allowances | Spouse | $500 | Work lunch / Clothing / Going out without partner |
| Me | $350 | ||
| Entertainment | Takeout / Restaurants | $300-$600 | I'm aware this is high. This has been one of the hardest habits to attempt to break |
| Alcohol | $0-$50 | ||
| Events / etc. | $100-$400 | I put down a range without giving it much thought. Could be something as simple as movie tickets to pot lucks to seasonal events |
Our short-term goals are to get a better grasp of our finances, trimming what can be trimmed, but also budgeting for certain events that we want to prioritize.
Our long-term goals are to be debt-free, to save up for our next vehicle and have the ability to pay in cash, to hopefully buy our first home, and to start investing. Does it make sense to focus on the revolving lines first? Should we pay off a few of the student loans first, since some have pretty small balances?
Submitted October 17, 2018 at 03:24AM by formerbartender https://ift.tt/2Oyg3an
