Need Advice to Get my Baby Steps in Order
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  1. #1
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    Default Need Advice to Get my Baby Steps in Order

    Hi All,

    Use to listen to Dave Ramsey then stopped for a bit and now I am back at it. Anyway, I want to get debt free and just need the best way to do it. I will explain our household situation.

    First off, me and the DW earn around $290k per year.

    We have about $65k in an emergency fund.
    We both currently max out our 401(k) contributions of $19k each. My employer matches the first 6% and my DW matches the first 3%.
    We also both max out a back door roth IRA.
    We have 2 kids and currently invest 10K a year in each of their 529 plans. DD is 13 DS is 10. Hoping to have 2-3 years of college fully funded.

    Now, here is where the debt comes in because we have been so focused on saving for retirement and college.

    We currently have a 30 year mortgage (3.825%) I am currently paying it down at a rate that the house would be paid off when i am 62.
    We have several credit cards that we truly do payoff each month and use the points for vacations. I know, this is a no no but when I earn roughly 70K points a year, they do make a difference.
    Me and my DW both lease our cars. DW lease is $338 and mine is $189 a month. Believe me I know this is the biggest waste of money but I am having a hard time convincing the DW to buy a used car. My goal is to buy my car out after the lease ends.

    So, like I said, there is definitely some areas we need to clean up and I just wanted to get some advice on what to do. I can only imagine Dave shaking his head about the CC and leases and saying, "Ya, you drive 2 nice leased cars, but your broke!"...

    Thanks all

  2. #2
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    I'm not seeing your problem. You have a high combined income many people would envy. You have a massive EF, maxed out retirement contributions and a college savings plan. You have a low rate mortgage you're paying off, and CC's with no balance. The car lease is a minor thing. Does DW know she is already driving a "used" car?

    Why do you think you're "broke"?
    Stop trying to organize all of your family’s crap. If organization worked for you, you’d have rocked it by now. It’s time to ditch stuff and de-crapify your world.

    If you're not using the stuff in your home, get rid of it. You're not going to start using it more by shoving it into a closet.

    Use it up, Wear it out,
    Make it do, Or do without. ~unknown

    A clean house is a sign of a wasted life. ~unknown

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    Are there areas to cut back? Like eating out instead of home cooking? Any purchases that can be eliminated so the CC's don't have balances? Or possibly eliminate a CC? Those areas can shore up some extra cash so it can be put towards the cars or mortgage,

    It sounds like you're in pretty good shape and maybe just eliminating some spending can help ease any issues.

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  5. #4
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    What is the problem? You discuss how you're making a lot of money, fully fund retirement, save for your kid's college, and then only provide one negative: roughly $500 in car payments. As far as I can tell, you are just fine. I was making $35,000 a year, and making a $500/month car payment, and not feeling broke.

    You'll need to provide more info on where the issue is.

  6. #5
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    sounds like you already have things pretty good. You need to decide what you want to do and then do it

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