[USER]

I would like some advice on how to start investing. My husband and I have not been great in managing our money.

So I currently make 75k a year, he makes about 50k a year.

I have 60k in student loan debts, he has no student loans. we both have about 10k in credit card debts.

Our mortgage is 1900, we do not have streaming services, we eat out once in a while.

We are not big on impulsive buying but we help our family members alot back home.

We have two kids, one is in preschool and another is just 10months, we pay $700 a month for preschool. We also have used cars, no car note.

My question is, my husband is graduating residency, he is receiving offers of about 250k a year, what tips will you give us as far as investing and paying our debts.

I have ordered the book a simple path to wealth, just wanted to get some ideas from the pros in this group lol.

Currently we have started being intentional about paying off our credit card debts.

We plan to pay it off before he finishes residency in July 2025.

We have an emergency fund of 5k.

I am 34, he is 40. So we are starting super late. Any advice is welcome.

Thank you

[April]

You guys are definitely not too late. I have never been a high earner, had large student loans when I graduated 2.5 years late from college, paid for my own grad school, bought a house by myself, started saving for FIRE at 30, and I still could have retired by 45 if I had decided to.

I did not have children though.

Like others have said, try to curb lifestyle inflation as much as possible, and focus on paying off debt and investing.

Make a plan to pay off your debt and stick to it.

Invest as much as you can.

My plan was to pay off all my debt and be financially independent by age 45.

I have had several unexpected setbacks over the years, and also several unexpected gains, and I achieved my goals (except the RE part

[Dustin]

you might listen to Ramit Sethis podcast and his netflix show.

There might be expectations to send much more money back home and you’ll want to set boundaries and a budget.

Personally I would set a plan and budget to be debt free besides a mortgage in 18 months.

I’d also max out all retirement plans and build up an emergency fund.

From there, I think you’ll need to start thinking bigger on investments and savings.

[Joan]

How much is the daycare for the 10 month old?
Congrats that your H will be finishing his residency next summer 2025.

How did he make it thru med school w/o any debt??

Are you sure he’s only earning $50k year?

PGY3+ should be earning more than that during residency.

I think the lowest PGY3 salary is about $65k.

Do you keep your finances separate?

First duty, as you’ve noted, is to pay off the CCs.

Is that really possible to do within 10 months? ($20k of CC debt)

[Jason]

Unless you’re investing for 401k match.. I’d hit those credit cards with all I had.

That will make you 20% or so.. depending what your rate is.

You’re on the right path.

As others said.. Keep that lifestyle in check.

I had massive student loans too.

They are draining.

[Amanda]

Steps in this order. Pay off any high interest credit cards first. Put about 6 months savings into a HYSA for emergency.

Max out any 401K match, then max out Roth IRAs.

The rest of savings go into personal investment accounts such as low cost ETFs that follow the market like VOO. VTI. VGT.

As far the student loans it would depend on what the interest rate is.

This is pretty typical.

Oh, also there are special accounts to save for your children if you are interested in that.

Feel free to ask any questions.

[Nancy]

Your husband got through residency without loans – that’s HUGE. Congrats!

I’ll leave it to others in the advice. Have you listened to the choosefi podcast – episode 100 that goes over basics?

[Al]

How much do you spend helping out people back home? Is this an expense you can cut out?

[Beth]

Continue to live like a resident, don’t live lifestyle of attending. (Fellow physician)

[Author]

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