Hi Money Minder,
Yo, 27F here. Making about $70,000 a year, which boils down to around $4000 each month after taxes, insurance, yada yada. Good news – no credit card debt! Rent is $1800, split with the fiance. Got $32,000 in student loans and $5500 left on the car. $8000 saved for the wedding and $1000 in a HYSA for an emergency.
Planning to tie the knot next year and saving $1200 monthly for that. Oh, and the future plans involve a bambino in 3 years and maybe buying a crib. Do you think it’s possible? Should I tackle the student loans first or save for the kid/house?
Cheers,
Money-Savvy Millennial.
Response from THE MONEY MINDER:
Hello There,
Congratulations on your upcoming wedding and exciting plans to start a family and potentially buy a house! With your current financial situation, it’s definitely doable to achieve these goals, but it will require some strategic planning.
Given your income and expenses, it’s great that you already have a solid emergency fund of $1000 in a High-Yield Savings Account. This will provide you with a financial safety net in case of any unexpected expenses. Since you are planning for a wedding next year, it makes sense to continue saving $1200 a month for that specific goal to ensure you have adequate funds for your special day.
When it comes to deciding between paying off your student loans or saving up for the future expenses of having a child and buying a house, it’s important to strike a balance. While paying off debt is crucial to improving your financial health, it’s also essential to save for important life events such as having a child and buying a house.
One approach could be to continue making your minimum payments on your student loans while also saving a portion of your monthly income towards your future goals. By allocating funds each month towards both paying off debt and saving, you can make steady progress in both areas. Once your wedding expenses are covered, you could then redirect the $1200 monthly savings towards paying off your student loans more aggressively.
Moreover, consider creating a specific savings fund for the future expenses related to having a child and buying a house. This will allow you to work towards these goals without sacrificing progress on your existing debt repayment. Additionally, exploring options for refinancing your student loans or finding ways to lower your interest rates could help you save money in the long run and expedite the repayment process.
Overall, it’s crucial to have a clear financial plan in place that balances debt repayment with saving for your future goals. By prioritizing and allocating your funds wisely, you can work towards achieving your dreams while maintaining a solid financial foundation. Best of luck with your upcoming wedding and future plans!
Farewell from THE MONEY MINDER.
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