I know this is LetsRun and we could always go see a financial advisor but from time to time some really helpful people respond on here.
My wife and I want to manage our money better. We got married two years ago, we’re both 34 years old. We’ve both runners and like to travel to races but it’s clear to us now that we need some type of planning/restraint.
Income: $6600 per month
Debt:
Credit Cards - $40K total (minimum payment $700/month between all of them)
My Student Loans -$100K (3 years of forbearance left)
Wife student loans - $40K. Been paying $425 per month but thinking of going into three year deferment since she is eligible for public forgiveness by then.
Private loan: $1800 (100 monthly payment no interest, about 1 year left)
Total debt: Approx $180,000
Bills (per month)
Rent $1000
Food $700
Gas $120
Sunpass $160
Rail: $100
Car $459
Insurance $130
Medication: $80
Electric: $70
Cell phones: $250
Work supplies: $50
Car maintenance: Average $25/month
Vacation timeshare: $175 monthly
Total expenses: Approx $3300
We have no savings. No retirement accounts. We would like to be smarter with all this. Up to now, we’re pretty much spending all our disposable income on things that make us happy.
What percent of our disposable income should go to savings?
What percent of our disposable income to should go to paying off debt?
And we should definitely open up a 401K right?