Throwaway because husband says this is TMI...
First, here's a quick snapshot of our (husband and I - both millennials) finances:
Debt
- Mortgage (350k left - trajectory for early payoff)
- Student Loans (20k left)
Savings
- Emergency fund (half way funded, but we're going for 2/3 year salary)
- Vacation fund (fully funded for 1 vacation)
- Retirement (170k..ish)
- General savings (I think it's around 10k)
- We have a lot of various small investments and savings here and there
Major expenses
- One child (toddler)
- TTC #2 child
Upcoming changes
- Husband just got a new job that pays $20k more per year starting in July
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We just received about 25k from tax refunds. That's not typical but it was a rough year. We have a few options to use this money on.
Option 1: Pay off student loans and put the rest in savings
Options 2: Pay for one of our 3 big house projects (our garage, outdoor kitchen/gazebo in backyard, OR add kids playground in backyard & landscaping) and put the rest towards student loans (will be about 10k)
Option 3: Pay for two of our 3 big house projects (our garage, outdoor kitchen/gazebo in backyard, OR add kids playground in backyard & landscaping)
- Debt makes me nervous.
- We've been waiting 5 years to do something in our backyard and have more and more people over/social events at our house.
- Clutter in the garage adds to my anxiety.
So there's pros to each. I'm really partial to options 1 or 2 but can't really decide between most responsible (debt payoff) and taking time to live life/reduce anxiety.
So what do you think, which option should we choose?
Submitted May 04, 2019 at 11:17AM by TooResponsible4Fun http://bit.ly/2J11HMu
