Love Street wrote:
Doing Homework - wow! That is quite an aggressive proposal and I commend you and your wife for being able to do that. It is also a good reality check for me - because what would otherwise seem impossible is clearly possible - and I'm going to sit down with hubby this weekend and crunch the numbers hard.
Is your proposal one that should be implemented after an emergency fund is established? (Otherwise I don't see where continuous saving would fit in).
Would it be better to pay off my 10% loan ($9k) before starting the aggressive retirement savings + Big Loan payments? With an aggressive plan like you suggest, the $9k loan could be paid off before the end of the year.
It's not as hard or aggressive as it seems. The first step is to figure out where all your money is going and plug the holes you don't think are worth it.
You will find a lot of people on here who are very frugal. They do things to save money that you may not want to do. We are not very frugal. We spend what we want, have a second home, drive nice cars, etc. The key is that we don't waste a lot of money and avoid interest as much as possible. Live beneath your means. Just because someone makes half a million a year doesn't obligate them to spend it all.
I think in your case I would suggest building the emergency fund first. I would pay off the $9k loan as quickly as possible too mostly just to get it out of your head. Maybe a good short term goal for you would be to have the 9k loan paid off by December 31 and also have 3-6 months emergency fund saved.