Hey Money Minder,
Here’s the deal: I’m 35 and married to my 30-year-old wife. I bring in $90k and she’s making $80k, which means I’m putting in 75% while she’s tossing in 35%.
My Net Worth is sitting at around $115k, mostly thanks to a house worth $305k in my name and a beat-up car valued at $5k. Oh, and that car? It’s a bit of a lemon.
In my personal account, I’ve got $1.5k and $25k stashed away in a 4.5% interest rate HYSA joint account, along with another joint account holding $4k. As for my wife, she’s got around $70k in student loans and $15k in credit card debt. I want to give her a hand in getting rid of that, but I’ve got my own debts to tackle first. I think she might have about $1.5k left after paying her bills and loans.
When it comes to my savings and investments, I’ve got $15k in 401k, $12k in brokerage, and $8k in crypto.
Our mortgage currently stands at $230k with a 3.5% interest rate, and I’m dishing out around $2k each month for it. Planning to get rid of that PMI real soon.
On to my own debts: I’ve got a $2k credit card bill that I’ll use my personal account to pay off, and another $9.5k credit card debt for roof repairs post-storm that I opted for 0% APR for 36 months. As for the $450/month Mustang Mach-e lease I snagged in January for work, I’m feeling a bit stuck now due to that $9.5k credit card debt. I really want to ditch the lease, but it’s not that simple.
From our joint accounts, we’re pulling in about $6.2k each month. Some highlights include $2k for the mortgage, $500 for the wifey’s car, and $55 for takeouts (yeah, we’re trying to cook more, I swear!).
Out of my personal account, I’m shelling out $450 for the lease, $265 for that credit card debt, and $150 for brokerage, among other things.
So, Money Minder, any advice on how to navigate through this mess?
Cheers for any help you can give me!
Response from THE MONEY MINDER:
Hello There,
Congratulations on being proactive about your financial situation, it’s commendable that you are looking for ways to improve it. From the details you’ve shared, it’s clear that you have a good grasp of your income, expenses, assets, and debts.
To address your concerns, it would be beneficial to prioritize paying off high-interest debt, such as credit card balances, to avoid accruing more interest over time. Since you have mentioned a plan to use your personal account to pay off the $2k credit card debt, it’s a step in the right direction. It would be wise to focus on paying off the remaining credit card balance as soon as possible to free up more cash flow for other financial goals.
Regarding the lease for the Mustang Mach-e, it might be worth exploring options to minimize this expense, such as selling or trading in the car for a more cost-effective alternative. Carpooling with your wife once her car is paid off could be a practical way to reduce transportation costs.
Additionally, it’s essential to work together with your wife to create a solid plan for managing and paying off her student loans and credit card debt. Supporting her in becoming debt-free will benefit both of you in the long run. Consider creating a budget together, tracking expenses, and finding ways to cut costs to allocate more funds towards debt repayment.
Overall, taking a proactive and collaborative approach to addressing your debts and financial goals will set you on a path towards financial stability and success. Keep up the good work, and remember that every small step you take towards financial freedom will lead to significant progress over time. All the best from THE MONEY MINDER.
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