We make $ 80,000 a year but owe $ 120,000 in auto and student loans. Shall we get a new car?
My wife and I are in our 20s and together we make about $ 80,000 a year. Our first baby will be born in early 2022 so being debt free is my top priority. At the moment we have two cars. The one I drive is paid for and has a lot of kilometers on it, but it’s in really good shape. On the flip side, we still owe $ 30,000 and the rest of our debt is about $ 90,000 in student loans. My wife covers 40,000 miles a year on the other car that goes to work. I talked to her the other day about getting a little smaller in car size, but she really cares about what she drives. I even found out that she has her eye on a newer vehicle that costs around $ 48,000. I do not know what to do. Can you help?
Okay, let’s start slowly. Glad you saw the wisdom to take control of your money and get rid of debt. This is the first step towards financial peace.
Well, as far as the car goes, there’s no way in the world that I would do that. And to be honest, I don’t care what is special about your wife. You are broke! You’re in debt to the limit, and now she’s talking about buying a $ 48,000 car – if you still owe $ 30,000 for one – then put 40,000 miles a year on it and get its value faster destroy than you can say “quick”.
This whole idea and attitude is dumber than a rock. Absolutely not! You may have seen the light when it comes to your finances, but it sounds like your wife is still groping in the dark and needs to grow up a bit. The two of you should have a long, serious conversation about things and be financially on the same page – especially when a baby is out. Your family’s future depends on it.
I hope I wasn’t unclear.