Can we afford our lifestyle?

Answers:2   |   LastUpdateAt:2012-10-05 02:06:03  

Question
Cheer
Asked at 2012-09-24 01:14:02
Can we afford our lifestyle? MedlinePlus We are in our mid 30's. Our house is paid for, to drive old cars 10 years and have 40k in student loans.We 4k bring home a month and save half. We ate out 2-3 days a week and go cruise or resort is at least once a year. We're going to the movies three times a month with popcorn, candy and drinks. We take weekend breaks every 2-3 months. We have 2 years of expenses saved. With the way the economy is right now we only spend money on things that need to be authorized to continue living life like us. Should we pay off student loans quickly? (4.87% at 20 years) (We have no children or any other debt.) MedlinePlus MedlinePlus We're saving 2k per month. This is for retirement and savings accounts for new vehicles. As we already have a good EF we stop putting money there. Once you've saved for new cars that will save you up to the next thing, whatever it is. MedlinePlus MedlinePlus We both have retirement plans at work also. MedlinePlus MedlinePlus MedlinePlus We have two years of living expenses saved. That is, if we both lost our jobs that would be fine for at least 2 years. We are saving the extra 2k for one month period. We are not using any of this money for any of our monthly bills, additional holiday. This goes into a savings account for retirement using retirement account and savings for new vehicles. The other 2k pay for household items, gas, utilities, cable, internet, phone, car / life / home ins. , Movies, food (home and away), weekend getaways, cruises and / or annual holidays. MedlinePlus MedlinePlus Can we afford our lifestyle? Why or why not?
Answer1Ana PerozoAnswered at 2012-09-26 16:18:11
I think you can realistically expect to get a better return on investment than the interest on their student loans. So would not accelerate the payment thereof . That said - you are a great model for financial planning . My wife and I are in our forties and totally free of debt , we own a house nicer than I expected and paid for it three years ago . My wife has a new car - Cheap and great gas mileage. Mine is 8 years - I'll drive until fall . MedlinePlus MedlinePlus We also have many , many years of spending money in the bank .....
Answer2not too brightAnswered at 2012-10-05 02:04:43
I would pay the debt , and keep saving .
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