- 6 years ago
- Wedding: June 2015
Another thread on here got me thinking: for Bees with debt (especially student debt) – how do you allocate your money in terms of budgeting/paying off that debt?
Here’s our situation: Fiance and I are both in grad school; I’m finishing this year, and Fiance has one more year before he graduates in 2016. I’m in school for education (teaching), and expect to make somewhere between 45 and 55K when I start out, depending on the district I end up in. Fiance is in law school and has a summer associate position lined up at a big law firm this summer. Assuming he does well (and I’m confident he will), he’ll receive an offer for full-time employment after he graduates. When he graduates, he’ll be making 160K. Together, we’ll have an income of somewhere in the 200K range.
Because we’re both in school, we also have student debt (yay!). Combined, we’ll have somewhere around 150K of student debt to pay off from our graduate studies (luckily, our parents were able to pay for our undergraduate education, so we don’t have any debt from that). Aside from student loans, we don’t have any real debt, but will have a car payment of about $200/month (his parents are paying the lease while he’s in school, and we will pick it up when he graduates). We live in a fairly expensive city, and estimate spending about $2000-2200/month on rent and utilities after graduation.
So, Bees, I was wondering how you allocate your income while paying off debt. We don’t really have much savings (I have a little bit, but Fiance went straight from undergrad to grad school to law school) or retirement savings (again, I have a little, but Fiance has none). We want to buy a house/condo at some point, save for emergencies, retirement, pay off loans AND still live a little (nothing extravagant, but we don’t want to live in a shack and eat Ramen every night either). We’ve talked about this a lot and gone back and forth – paying off as much debt as possible up front, paying off the debt slowly and saving more, etc. A lot of Bees on here seem to be very financially savvy, and while we plan to consult with a financial advisor about all of this, I was hoping to get some general ideas regarding best practices.