As the title says, I'm looking to see what personal finance thinks about our plan going forward. I don't like to get to worsy, so down to business.
Net every two weeks income:
Myself: 1419.31
Wife: 982.20
We are both salary so this shouldn't change. I contribute 7% to my 401k, my wife doesn't contribute at all yet. We will probably start an IRA for her once we finish all our debt except the house. We don't have kids, and aren't trying/expecting/wanting any soon if at all.
Our debt (what is left):
Mortgage - 149,000 (4.5%) @ 1211.10/mo
Her car loan - 9,000 (7.25%) @ 215/mo
Her school loans - 7,123 (6.8%) @102.91
Kays (wedding rings) - 488.55 (unsure) @100.00
Conns (Refrigerator) - 655.15 (14.99) @ 52.48
Chase CC (revolving 400, gets paid in full every month) - 400.00 @ 22.99 (none of it ever accrues as it is PiF)
My Cap1 - 1848.70 (19.99) @ 53.00
Her Cap1 - 2432.76 (24.99) @ 74.00
The info: we don't live frugally when it comes to food, our grocery budget is 150 (give or take) a week, however we eat out dinner 1x/week, and each of us takes a lunch out per week, but 6 dinners/lunches and all breakfasts are made at home. Other than that, our bills are pretty minimal. All minor repairs for cars I do, lawn I do, cleaning we do, we only have internet, no cable, and keep our house at 75 normally. Essentially the plan is as follows.
Plan: we get paid an extra check this month. We already have our bills paid from our check on july 3rd/June 19th (mortgage) and we are paying off at least conns, if not conns and kays, and putting whatever is left (outside gas/groceries) toward my wife's vacation to seattle at the end of august.
Currently I pay 120 payments to conns, and 120 payments to Kays, so in turn, once those are paid, we are taking that "extra" 240 and putting it toward her cc due to the higher interest rate. Once that is paid off, (assuming early spring) I'm doing something I most likely am going to get reamed for, and buying another motorcycle. I had one before, and got rid of it because of mechanical complications I didn't feel like dealing with. The next one will probably be around the same price (3000-4500) range. This will likely come from our extra january check, and our tax refund, and will become my daily commuter due to lower gas cost and because I honestly don't know how to live without one. Yes I already have a car, it has been paid in full. Upon buying the bike, we will go back to regularly scheduled programming taking the 240 from before, plus the 80 from my wifes card, and adding it to the current 80 I pay to my cc per month, and paying that off.
At this point, I'm at somewhat of a crossroads, the balance on school loan will be significantly lower, but the interest on the car will be higher. Regardless of which I choose, we will continue the snowball to pay those off, and then start adding payments to the house for mortgage or upkeep/upgrade. Looking at this abstractly, guessing no major hiccups, we could finish everything within 2 years except the house, and be well on our way for being so young. I want to know y'alls opinions as I'm still young and relatively inexperienced, on the plan as a whole, as well as which to go after first.
Submitted July 08, 2015 at 01:06AM by throwaway50912 http://ift.tt/1He4kRn personalfinance
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