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Budget & Newlywed Finances
Hi all,
I've been lurking here awhile and I know there are some savvy people on this board who might help FI and I think of something we haven't already. FI and I are getting married on April 6 (oi), and in general we prefer to combine finances. That's not going to be a problem during our second year or marriage, but for our first it is tough... FI is going to be a 3L law student in the fall, and I am an attorney who works about 3 hours away. Not ideal, but I love my job, it pays well with reasonable hours, and let's face it - love is not everything, especially in a legal market with really limited job choices. Our primary concern is what do we do about our first year of marriage. Here is our budget:
Me - 26
Take-home pay: $5275/month
Health insurance: $0 - employer pays premiums
Dental insurance - $17/month
Gym membership - $50/month - employer pays half if I go 8 times a month
Rent: $1260/month
Utilities + cell phone + insurance: $240/month
Student loan payment: $757/month (4% fixed for 9 years)
Gas+food+clothes+play money: $1000/month
Savings: $1950/month (began in Jan after paying off a $12K loan to my parents); currently $3125 in account**
401(k): not eligible until Jan 2014
Roth: $12,635
Car payments: $0
CC debt: $0
Other debt: $0
**Currently our savings are going into a house fund - we used savings to pay for our honeymoon as well, but that is now paid for.
Him - 25
Take-home taxable: $500/month - part-time job through school
Loan disbursement: $1833/month
Rent (includes utilities): $700/month
Car payments: $0
Cell phone: $0 - on my plan
Health insurance: $0 - on his mom's plan, will move to mine after the wedding
Dental insurance: $0... he doesn't have it 
Gas + food + clothes + play money: $1000/month
Emergency expenses + books 2x/year: $600/ in liquid savings
Savings: $1,000 that he won't touch
Roth: $8,000
CC debt: $0
**********************************************************************************
We have 2 big questions here:
1) Do we combine even though we are living apart for the next year, paying two rents, and he has loan disbursements coming to him that I really shouldn't (and certainly don't want to) touch?
2) My savings situation is interesting... Starting in Jan 2014 I'll be able to enroll in my employer's 401(k). They do not match at all - but with my current savings plan I can still contribute up to the maximum legal limit next year ($1433/month if the rates stay the same as 2013). I will also have a bit left over to send to liquid savings.
So should we be using my savings to reduce his loan debt for the next year? We would prefer to put my savings toward a downpayment on a house, but we don't know if that's the truly responsible thing to be doing. FI will have a summer job that will bring in about $13K post-tax this summer, so that will all be going toward reducing the amount of money he has to take out in loans. Should we make up the difference with my income or just keep putting money away for a downpayment?
The other thing I almost feel obligated to do is fund FI's roth for 2013 - that's possible with my savings, but again it pulls money out of our house savings. My own is funded by two "extra" paychecks I receive twice a year, so that doesn't come out of our cashflow. Once FI is graduated and working, his will be funded the same way. So do we fund it now or wait until FI's income is steady enough and fund it the same way as we fund mine?
Sorry this is so long - we just sort of feel like this is something we need to make a decision about since the wedding is so close, and we have gone around and around in circles with this.
Re: Budget & Newlywed Finances
Does your FI have a job lined up after the summer? If not, will he be moving to where you are?
Is he really spending $1,000 of his loan money on gas, food, and clothes per month? It seems like a lot of spending on borrowed money.&nb
@MrNibbles
He's got 1.5 years of law school left. What are his job prospects? Is is summering somewhere "good" . . . meaning he'll make a few bucks this summer? What are his prospects for a PT job next year & a FT after graduation? I d
Yes he's got 2 summer jobs lined up in the city where I live - one of which has given offers to 100% of their class for the last 5 years in a row. They pay the same. With any luck, he will get an offer from at least one of them and be bring
I think your first priority should be funding a 2012 Roth IRA for him, not just a 2013 Roth IRA. You have until mid-April for that, and you probably will not qualify once he is working.
I like the idea of waiti
Thanks Sillygoose, those are some great suggestions. I'm about two paychecks away until I have a month's living expenses tucked away. If we can make it another 4 weeks... things should be fine.
After talk