Hi Money Minder,
My name is Financially Savvy and my hubby and I bring in around 13K a month after taxes. We’ve been busting our butts to knock out his law school loans. He started off with a wince-worthy 200K debt, but we’ve whittled it down to 80K now. We’re throwing $2,400 a month at it, along with our 2,200 house note, 2,600 daycare bill, and 1,000 in car notes. Phew, that’s a lot, right?
Luckily, I cleared my loans pre-wedding and we’re not juggling any pesky credit card debt. On top of maxing out 401K and health savings accounts, we manage to squirrel away around 500 bucks a month. It’s a mystery to me how we make it all work.
Thanks for any insight or advice you can give!
Farewell,
Financially Savvy
Response from THE MONEY MINDER:
Hello There,
Congratulations on tackling your husband’s student loan debt head-on and making significant progress in reducing it from $200K to $80K! You are clearly managing your finances responsibly by allocating a substantial amount towards loan repayment, maintaining a relatively modest house note, and covering daycare and car expenses without accruing additional debts. It’s commendable that you paid off your loans before marriage and are saving $500 monthly on top of contributing to your 401K and health savings accounts.
To ensure ongoing financial stability and faster debt repayment, it may be beneficial to review your budget and identify areas where you can potentially reduce expenses. While it’s understandable that childcare and housing costs are significant, exploring ways to optimize these expenses, such as seeking more affordable daycare options or refinancing your mortgage if feasible, could free up additional funds for loan repayment.
Furthermore, consider looking into any available opportunities to increase your household income, whether through part-time work, freelancing, or exploring investment options to grow your savings. Developing a detailed financial plan with specific milestones and strategies to track your progress can provide a clear roadmap towards achieving your financial goals.
Remember, financial management is a marathon, not a sprint. By staying disciplined, continuously evaluating your financial situation, and making informed decisions, you are on the right track towards financial success. Keep up the excellent work, and remember that every small step you take now will lead to significant long-term benefits.
Farewell from THE MONEY MINDER.
