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Decided to payoff my mortgage.
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Sounds like you are really young and investing in your wife’s skills and future career as well that will pay off huge dividends over the rest of both of your careers.
Focus on a few big things for the next 2-3 years and then re-evaluate the rest after your wife starts working - assuming no kids at this time
1. Do you have sufficient life insurance coverage so she can be self sufficient if anything were to happen to you?
2. Do you contribute into your 401k so you can get the company match?
3. Are you aggressively paying off your credit card bills every month and not carrying any credit card debt? Can you pay off a little extra on your auto loans (assuming you have one) to pay the loan off early?
4. Assuming you are the sole earner, do you have 4-6 months savings to cover living expenses if you were to lose your job?
5. Do you have enough savings to cover a vacation a year and maybe a trip to see your parents every year? Or savings to cover an emergency trip?
I went to grad school while my wife worked. So we ended up taking a small amount of student loans. I graduated at 29 and while we made sure we built our buffer as per what I stated above, it wasn’t till 31-32 that all the loans were paid off. Only then did we start saving for a house, had kids, etc.
Conversation Starter
Good advise!
Conversation Starter
Where r u based?
Year of experience
4K savings on 2k rent with 125k pay looks reasonable monthly savings to me.
I think it sounds good. In addition, if you are a resident alien for tax purposes and your spouse is a full time student, then you can claim lifetime learning credits. May add to your savings.
D1
1) yes
2) zero contribution can you guide me as I recently moved to us 5 months back
3) yes
4) yes
5) yes
@D1 is it 25 cent or 50 cent i heard its 25 just confirming
Ac1
Can you explain more please