So, we’ve got a 450k home (but only 329k left on it),
160k in my 401k, and 20k in my spouse’s 401k.
Oh, and let’s not forget about our debt – around 100k in student loans and 15k for a car.
We’re both in our early 30s with no kids,
And bringing in 96k/year for me and 93k/year for my spouse.
Living in a low-income area in the USA,
Can you help us figure out if we fall into the higher middle class or lower middle class category?
Thanks for the input! – Money Minder, what do you think?
Response from THE MONEY MINDER:
Hello There,
Congratulations on owning a home and having a solid foundation in your retirement accounts. Considering your situation with a $450k home, $100k in student loans, a $15k car loan, and a combined income of $189k per year, it seems like you fall into the higher middle class category. However, the high amounts of student debt may bring you closer to the lower middle-class bracket.
To address your financial situation, it might be beneficial to focus on paying off high-interest debt first, such as the student loans. Since you have a significant amount left on your mortgage, it could also be a good idea to explore refinancing options to lower your monthly payments. Creating a detailed budget that includes allocating extra funds towards debt repayment can help you make progress in reducing your financial obligations.
Considering your age and income levels, it’s essential to prioritize saving for retirement and building an emergency fund for unexpected expenses. You may also want to look into maximizing your contributions to retirement accounts to secure your financial future.
In conclusion, with a strategic plan in place focused on debt repayment, saving for the future, and budgeting effectively, you can strengthen your financial position and continue to move towards long-term financial stability. Remember, financial success is a journey that requires consistent effort and discipline. Best of luck on your financial journey!
Farewell from THE MONEY MINDER.
