I constantly feel behind

[Anonymous]

Agree with all the people saying your wife should get a 401k. There are several options for self-employed people.

$90k in savings account might be getting a tad high, unless you are saving for some big, immediate purchase or loan repayment. If not, I would focus new money on equity market for the near future (like index fund 401 k for your wife.)

[Anonymous]

I agree to maxing out the 401k and probably doing that over college savings for the kids.

[Anonymous]

Your wife needs a higher paying job. She needs to be contributing the max to a 401k plus a match. 80k isn’t enough if she is college educated. My local target store pays close to $50k.

[Anonymous]

You can get a life insurance policy if you're worried about things blowing up if you suddenly drop dead.

[Anonymous]

This is me if helpful - also a 300K income. We do each have life insurance- i assume you do too?

https://www.dcurbanmom.com/jforum/posts/list/1128137.page

you have to figure out your own priorities & how you want to spend your money. But if you’re saving for retirement - to me it does feel like you have to cut back and you can’t just buy whatever you want. That said - I am still able to fund my priorities. But you have to think about your priorities.

As a follow up to my post - my husband is still making us pay off our mortgage in 15 years. I’m probably going to keep paying $270 / month on my student loans for the rest of this year and then when I get a bonus pay more to my student loans - idk if you get a bonus.

In general I’ve cut back on some things since really seeing where I’m spending my money - cut out coffee subscription and wine club - realistically can get cheaper at grocery store. Buying more groceries / eating out less etc.

If I had been in this mindset sooner - I probably would not have gotten a new to me car in 2020 and would have driven my then 11 year old car a few more years without car payments but live and learn.

[Anonymous]

The emergency fund seems high. Is it at least in a HYSA? I would probably take half of it and max the Roth for a few years.

Of course DW thinks you’re doing fine. You make almost triple what she makes lol

Do you have life insurance? If not, get a $2M policy and hopefully that will make you feel somewhat better.

[Anonymous]

You can make whatever life choices you and your DW want, OP, and don’t worry about scathing criticisms from DCUM. We have a lower income and are in our fifties with two kids in college and still have a mortgage situation like yours. We’re fine, because we’ve had twenty years of retirement growth. Over time the investments you have will secure you. Your wife’s job is perfectly well paying, but she really should start a 401K and contribute 10% to it. Your savings are a great cushion and your cash flow will sustain you. I’d work on figuring out how to worry less, not how to spend less.

[Anonymous]

Anonymous wrote:You are behind because you have a 900k home and 250k in debt. I’m not sure what you can do given these long term fixed debts other than one of you needs to get new jobs that make more money. What industry or field are you in? Can you move up in your organization? Can you make more if you jump?

This is the OP, our house is no $900k. We bought it for $580k 4 years ago, and made significant renovations and the appraisal value is in the $900ks that’s why e have the equity.

[Anonymous]

Anonymous wrote:Should've paid off the student loan, invest heavily from 2008-2022 and then buy a house.
Most people go for the house as soon as they have the income and qualify. Is the equity big down payment or you've been paying 15 years?
Your 529 grows slower than you pay interest on the student loan. Pay off the student loan and you free up cash in case kids go to college.
Start paying off the loan unless it disappears somewhere some day.

Op here: thanks for this. Except, in 2008 I was in highschool, 2009-2013 I was in college working at an icecream shop for minimum wage. So that doesn’t really work.

[Anonymous]

Anonymous wrote:The emergency fund seems high. Is it at least in a HYSA? I would probably take half of it and max the Roth for a few years.

Of course DW thinks you’re doing fine. You make almost triple what she makes lol

Do you have life insurance? If not, get a $2M policy and hopefully that will make you feel somewhat better.

Op here, thank you for this. Not we don’t have life insurance. Perhaps we should look into that.

[Anonymous]

Anonymous wrote:You can make whatever life choices you and your DW want, OP, and don’t worry about scathing criticisms from DCUM. We have a lower income and are in our fifties with two kids in college and still have a mortgage situation like yours. We’re fine, because we’ve had twenty years of retirement growth. Over time the investments you have will secure you. Your wife’s job is perfectly well paying, but she really should start a 401K and contribute 10% to it. Your savings are a great cushion and your cash flow will sustain you. I’d work on figuring out how to worry less, not how to spend less.

Op here, thank you for this and your perspective. I appreciate it. Yes, I agree that I need to seek some help in how to worry less. I’d love for DW to save for retirement but I think we basically use her after tax income to live and pay for our expenses.

[Anonymous]

Anonymous wrote:The emergency fund seems high. Is it at least in a HYSA? I would probably take half of it and max the Roth for a few years.

Of course DW thinks you’re doing fine. You make almost triple what she makes lol

Do you have life insurance? If not, get a $2M policy and hopefully that will make you feel somewhat better.

Op here, our emergency fund is high and in a HYSA because I have this constantly worry that I’ll lose my job and fail in life and we’ll need money to pay our mortgage so I’m too concerned to put that money anywhere else. And no we don’t have have life insurance at all and we should probably look into that.

[Anonymous]

Anonymous wrote:Your wife needs a higher paying job. She needs to be contributing the max to a 401k plus a match. 80k isn’t enough if she is college educated. My local target store pays close to $50k.

Thanks. DW is not college educated.

[Anonymous]

Anonymous wrote:I’m laughing at people saying the house is OP’s problem. It’s not.
$400 equity in the house. Only a $2800 monthly payment. They are in a great situation on housing.

It’s probably people who live in places where you can get a McMansion for 400k

[Anonymous]

Anonymous wrote:

Anonymous wrote:You are behind because you have a 900k home and 250k in debt. I’m not sure what you can do given these long term fixed debts other than one of you needs to get new jobs that make more money. What industry or field are you in? Can you move up in your organization? Can you make more if you jump?

This is the OP, our house is no $900k. We bought it for $580k 4 years ago, and made significant renovations and the appraisal value is in the $900ks that’s why e have the equity.

Stop right there OP. I'm the PP who said your house is the least of your problem. But now it looks like the house could be your problem. The equity on your house is appreciation but it's because of the renovations. How much did you spend on the renovations? 200k? You should have used that money to pay off your student loans. Now your house is actually the problem.