3-5 Years?

MeaghanandMichael · June 2010

So Mike and I sat down this weekend and made our 3-5 year plan. It felt really good, but I kind of really wary about how successful we will be able to be sticking with it. I am not saying we are not gung ho about it -ut more there is always something that comes up to throw you. I know I being a Debbie Downer because it is really obvious life is something that happens and you make the best of it. We have just had a bad experience already (we made a 3 year plan when we got engaged and Mike had his car totaled which we JUST got paid for, and I racked up 20k in hospital bills from my emergency surgery right before the wedding.)

However, if we stick to this we will be completely debt free (including hosiptal and school and cars) by the end with a possibly awesome house down payment depending on the market at that time.

Any experiences with this? Or, do you think we should leave more debt and get the house faster? This is the real debate. Pep talks welcome

beatlesgirl25 · June 2010

Aw Meg, I'm sorry you're feeling worried about this. I might be wary too if things had gone that off-track in the past. But you guys have regrouped and are giving it another shot, so you will be ready for whatever comes along. Even your plan being 3-5 years instead of 3 or 5 makes it more flexible already, which is a good cushion for unexpected life events. You guys are smart.

I am not the person to ask for advice on financial and house stuff, because H and I haven't even gotten that far yet in our own plans. BUT, I don't see the harm in waiting a little longer and getting more debt out of the way, especially with the housing market still recovering.

MeaghanandMichael · June 2010

That's what I like about the 3-5 years too

We are not TTC any time soon by any means, so that is not an issue either. We know we want a house first andplusalso we are still so young, you know? I mean we have been doing well with saving and paying so far - but the big talk made the future so looming! eeek!

Nebb · June 2010

Plans never work for me, EVER. But I have what I like to call "sams luck" (its what bad luck is named after). Every time I draft up a plan for our finances or endeavours it is quickly derailed by some kind of calamity that we didnt see coming. Ive pretty much given up on long term plans and try not to look more than a month or two into the future.

That said, I do think plans are great, I think if you have an idea of how to manage your time and money, you are generally more successful than if you wing it.

ggmae · June 2010

I think it's great that you guys sat down together and are getting a plan drawn up. N and I need to do that!

I would wait a bit longer and pay off as much debt as you can. I'd feel better buying a home and starting a family with as little debt as possible.

Do you have plans to get an emergency fund set up (or do you have one?) Suze Orman advises that people should have 8 months worth of expenses put away in case of emergencies. We are in the process of building one.

MeaghanandMichael · June 2010

Nebb - I hear you. I know these things happen to every one so I hate to sounds so whiney, but when you need new car breaks or the dogs have a $500.00 vet bill you just want to be like fuuuuuuuuck. I mean, it is so frustrating to see so much money in the bank one month and then see it all of the sudden go away.

MeaghanandMichael · June 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_snarky-brides_3-5-years?plckFindPostKey=Cat:Wedding%20BoardsForum:17Discussion:b810e806-97c0-47ea-a7ba-1439a60da771Post:3b56e4d0-488c-483e-8c4d-2d31431fe842">Re: 3-5 Years?</a>:
[QUOTE]I think it's great that you guys sat down together and are getting a plan drawn up. N and I need to do that! I would wait a bit longer and pay off as much debt as you can. I'd feel better buying a home and starting a family with as little debt as possible. Do you have plans to get an emergency fund set up (or do you have one?) Suze Orman advises that people should have 8 months worth of expenses put away in case of emergencies. We are in the process of building one.
Posted by ggmae[/QUOTE]

We definitely have one. It is not 8 months worth, but I am still comfortable with that. It is SO hard not to use that money to pay off other stuff though but I know it is smarter in the long run. I am just anal and I know in a few years I might be all, "well if we had JUST used that 5k(or whatever) a few years ago we would be furthur ahead. I need to stop thinking like that though.

Nebb · June 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_snarky-brides_3-5-years?plckFindPostKey=Cat:Wedding%20BoardsForum:17Discussion:b810e806-97c0-47ea-a7ba-1439a60da771Post:0fa73554-44ea-4fff-bee6-083cdc5b4299">Re: 3-5 Years?</a>:
[QUOTE]Nebb - I hear you. I know these things happen to every one so I hate to sounds so whiney, but when you need new car breaks or the dogs have a $500.00 vet bill you just want to be like fuuuuuuuuck. I mean, it is so frustrating to see so much money in the bank one month and then see it all of the sudden go away.
Posted by MeaghanandMichael[/QUOTE]
I actually question a lot whether it really does happen to everyone. It seems, for us anways, we have had a REALLY tough past 2 years and it doesnt seem like anyone we know ever goes through rough times like that. I know exactly how you feel. See look at that, once again youve made me feel like im not alone, first in IL hate and now in bad luck/financial issues. :)

ggmae · June 2010

I asked N if we could borrow from our e-fund to buy bedroom furniture and he said no. I knew that would be his answer (and I was pretty much joking anyway), but it was worth a shot - and he is better w/ the finances than I am so I trust him and listen to him.

beatlesgirl25 · June 2010

Nebb, that's a good point. Maybe having a plan is more a theoretical structure of how to resolve your debt, to show you what would make it possible, but that your concrete plans may vary and that's also okay.

ggmae · June 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_snarky-brides_3-5-years?plckFindPostKey=Cat:Wedding%20BoardsForum:17Discussion:b810e806-97c0-47ea-a7ba-1439a60da771Post:0fa73554-44ea-4fff-bee6-083cdc5b4299">Re: 3-5 Years?</a>:
[QUOTE]Nebb - I hear you. I know these things happen to every one so I hate to sounds so whiney, but when you need new car breaks or the dogs have a $500.00 vet bill you just want to be like fuuuuuuuuck. I mean, it is so frustrating to see so much money in the bank one month and then see it all of the sudden go away.
Posted by MeaghanandMichael[/QUOTE]

When I get paid and N gets his GI Bill stipend at the beginning of each month, it's really depressing to see 1/2 of it gone within 2 weeks due to rent and bills. When Henry was sick, he cost us $500 in vet bills and it's a good thing we had the money saved because otherwise, we (and he!) would have been screwed.

MeaghanandMichael · June 2010

Seriously, Nebb that makes me feel so much better too. Come to think of it, I know Mike and I have had some really unlucky experiences that we have had to make the most of. I actually don't know too many people who have faced some of the shiit we have. Maybe I just don't know enough about my friend's finances (which is fine) but you woul think I would have heard of major crap they were dealing with. It makes me just want to whine, "but it's not faiiiiiir." I know you dealt with unemployment and so did I. That alone is enough to make you tear your hair out.

beatlesgirl25 · June 2010

I'm so glad you all have jobs you like now! Unemployment is the suck.

MeaghanandMichael · June 2010

I know, Gretch! It is so tempting because you can very well justify most of your spending. It is not like new bedroom furniture is a bad investment. It is just not as important and even though you know that it just is annoying.

Nebb · June 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_snarky-brides_3-5-years?plckFindPostKey=Cat:Wedding%20BoardsForum:17Discussion:b810e806-97c0-47ea-a7ba-1439a60da771Post:258a8149-7eb4-4501-b30d-920c44bfab9c">Re: 3-5 Years?</a>:
[QUOTE]Seriously, Nebb that makes me feel so much better too. Come to think of it, I know Mike and I have had some really unlucky experiences that we have had to make the most of. <strong>I actually don't know too many people who have faced some of the shiit we have. Maybe I just don't know enough about my friend's finances (which is fine) but you woul think I would have heard of major crap they were dealing with. It makes me just want to whine, "but it's not faiiiiiir." </strong>I know you dealt with unemployment and so did I. That alone is enough to make you tear your hair out.
Posted by MeaghanandMichael[/QUOTE]
I feel 100% the same way. It seems like all of my friends have had steady jobs, good income, no financial hardship and had the ability to buy houses, cars, go on trips, and all of that stuff... while we have just struggled almost constantly just to get by. Hopefully its our time now!

to answer your question though, I think paying off the debt as much as possible is a better idea than jumping into a house. Houses will always be there and once you have them it might make it harder to continue paying off debt at the same rate.

MeaghanandMichael · June 2010

Actually Nebb, one night a few months ago you mentioned in a post that you showed your H how far you had come on paying down debt on a credit card and that he was pretty shocked too. You said something like, "see THIS is why we made the decision to pay it down instead of going somewhere," and he was psyched. That actually motivated me a lot and we suddenly had that revelation this week (which sparked this 3-5 year plan) SO thank you!

ggmae · June 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_snarky-brides_3-5-years?plckFindPostKey=Cat:Wedding%20BoardsForum:17Discussion:b810e806-97c0-47ea-a7ba-1439a60da771Post:a08628d5-4d26-42d9-a63a-7c1f0e326531">Re: 3-5 Years?</a>:
[QUOTE]I'm so glad you all have jobs you like now! <strong>Unemployment is the suck.</strong>
Posted by beatlesgirl25[/QUOTE]

Mm hmm! I remember feeling so hopeless when I was unemployed, and the fact that my good friends had AMAZING jobs that they loved didn't help my self-esteem much.

Nebb · June 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_snarky-brides_3-5-years?plckFindPostKey=Cat:Wedding%20BoardsForum:17Discussion:b810e806-97c0-47ea-a7ba-1439a60da771Post:9f781b9a-0d6f-40d0-b93d-bea261dee97e">Re: 3-5 Years?</a>:
[QUOTE]Actually Nebb, one night a few months ago you mentioned in a post that you showed your H how far you had come on paying down debt on a credit card and that he was pretty shocked too. You said something like, "see THIS is why we made the decision to pay it down instead of going somewhere," and he was psyched. That actually motivated me a lot and we suddenly had that revelation this week (which sparked this 3-5 year plan) SO thank you!
Posted by MeaghanandMichael[/QUOTE]
That makes me so happy :) Thank you so much for saying that.

Paying off debt isnt fun, and it isnt easy, but it just feels good to have done it after the fact. We still have a lot left to go but atleast were working towards it. I always get upset because were always broke and never go out and do fun stuff but in reality we make decent money - we just syphon it away towards various debt immediately so we never SEE any of it. Its hard, "doing without".

MeaghanandMichael · June 2010

So, Nebb, vodka and knot nights for the next 6 months worth of weekends?

See ya there!

Nebb · June 2010

Ill be there with bells on! It can get kinda boring staying in all.the.time, but I really do save a lot of money that way. Having you guys here, REALLY helps. I actually look forward to my friday night knot sessions drinking and watching tv on my own, im just used to them now.

beatlesgirl25 · June 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_snarky-brides_3-5-years?plckFindPostKey=Cat:Wedding%20BoardsForum:17Discussion:b810e806-97c0-47ea-a7ba-1439a60da771Post:8c01ad9e-9c92-4ae6-87ae-ec5072aa15b7">Re: 3-5 Years?</a>:
[QUOTE]In Response to Re: 3-5 Years? : Mm hmm! I remember feeling so hopeless when I was unemployed, and the fact that my good friends had AMAZING jobs that they loved didn't help my self-esteem much.
Posted by ggmae[/QUOTE]

Doesn't that always seem to be the case? It's not that you're not happy for your friends, but you see what they do and think, "I'm just as qualified, how come no one will give me the chance to work like they do? I want a life too!" Work is pretty crucial for structuring your life, IMO. Aside from the financial benefits, that is. :)

MeaghanandMichael · June 2010

ps- Beatles, you still sick? You poor thing! Is tomorrow going on or not?

beatlesgirl25 · June 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_snarky-brides_3-5-years?plckFindPostKey=Cat:Wedding%20BoardsForum:17Discussion:b810e806-97c0-47ea-a7ba-1439a60da771Post:5575f779-bc87-4ebd-8e03-d47bc2a28c5d">Re: 3-5 Years?</a>:
[QUOTE]ps- Beatles, you still sick? You poor thing! Is tomorrow going on or not?
Posted by MeaghanandMichael[/QUOTE]

Yeah, unfortunately I'm still feeling like a pile of crap. I realized I'm not covered to go to the urgent care clinic, so I'm not sure what's wrong but it's probably not strep after all (no icky throat patches, so that's good). I'm torn because I don't want to get anyone sick or totally drag ass down there, but I'm super duper excited to meet up. :(

ggmae · June 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_snarky-brides_3-5-years?plckFindPostKey=Cat:Wedding%20BoardsForum:17Discussion:b810e806-97c0-47ea-a7ba-1439a60da771Post:64ec65f2-50f9-4f1c-b3eb-76a6f42245db">Re: 3-5 Years?</a>:
[QUOTE]In Response to Re: 3-5 Years? : Doesn't that always seem to be the case? It's not that you're not happy for your friends, but you see what they do and think, "I'm just as qualified, how come no one will give me the chance to work like they do? I want a life too!" Work is pretty crucial for structuring your life, IMO. Aside from the financial benefits, that is. :)
Posted by beatlesgirl25[/QUOTE]

Exactly.

MeaghanandMichael · June 2010

Awww that sucks!! I am good for either way and we could always just wait til you feel better and hit Sarah up on her way back?

beatlesgirl25 · June 2010

I think she's on her way back this week actually. Hm. I'll be bummed if I miss this. Thanks for your flexibility though!

jajph1974 · June 2010

You might want to consider at least speaking with a real estate agent and mortgage broker. Right now it's a buyers market. Home prices are pretty low. 3 - 5 years from now it could be a completely different story.

If you can get into a house now and pay roughly what you're paying in rent, it might be something to look into. You'll still be able to pay down debt while simultaneously building equity.

MeaghanandMichael · June 2010

Unfortunately Jalph (ha! I still read it like that) we don't have the money for a downpayment right now. Otherwise, that would definitely change the ballgame!

jajph1974 · June 2010

If you have a 401K or annuity plan I'm pretty sure you can borrow against it (without repayment) for the purchase of a home.

I'm a total real estate fanatic.

MeaghanandMichael · June 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_snarky-brides_3-5-years?plckFindPostKey=Cat:Wedding%20BoardsForum:17Discussion:b810e806-97c0-47ea-a7ba-1439a60da771Post:fbe20938-7432-4254-8bb4-cf86d8ac0673">Re: 3-5 Years?</a>:
[QUOTE]If you have a 401K or annuity plan I'm pretty sure you can borrow against it (without repayment) for the purchase of a home. I'm a total real estate fanatic.
Posted by jajph1974[/QUOTE]

We do, and a pension. BUT we have only been paying into it for under 3 years. Sooooo there's that.

jajph1974 · June 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_snarky-brides_3-5-years?plckFindPostKey=Cat:Wedding%20BoardsForum:17Discussion:b810e806-97c0-47ea-a7ba-1439a60da771Post:50ee8c5f-4e0c-4f11-8689-2f433aaaabfa">Re: 3-5 Years?</a>:
[QUOTE]In Response to Re: 3-5 Years? : We do, and a pension. BUT we have only been paying into it for under 3 years. Sooooo there's that.
Posted by MeaghanandMichael[/QUOTE]

:( That sucks. Most of what I've read has said that the housing prices should remain reasonable for at least the next three years. Fingers crossed

3-5 Years?

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