I have about 3 years left on my military commitment before I plan on trying to transition out for a career with the FAA as an air traffic controller. I want to make these next 3 years count as far as setting a good financial foundation. Right now on just my salary, DW and I are about to save about $200/month which I know isn't much.
In about 12 months I will get a pretty significant raise of about $1,000/month which will not be spent and will hopefully be the basis for starting our financial future. For her as a military spouse it is difficult to find a job but she is looking. As soon as she finds one, her whole salary will also be saved. In addition, in about 5 months our living expenses will decrease by about $500/month.
Here are my current stats:
$21.5K military loan @ 2.99%
$20K student loans at various rates no higher than 6%
$1,250 emergency fund
Currently rent a home
No Children
I know we are not in the ideal situation but we are young (23) and are trying to head on the right track. My question is more toward the steps I should go about in setting a good financial foundation. The military loan is a pain in the butt. It is about $463/month. I would really like to focus on paying this off ASAP just so I don't have that monthly payment but the interest rate is so low it's hard to justify. Student loan payments are much less per month.
My thinking is to grow our emergency fund, and then as quickly as possible pay off that military loan which will increase our savings rate because that extra $463 will go into savings. I have no real abmition to pay off the student loans at the moment. Then with the extra money from my pay raise($1,000/m), living expense reduction ($500/m), loan paid off ($463/m), and possibly my wife finding employment ($1-2K/month) save as much as possible for a down payment on a house and to get us through our transition out of the military (getting in with the FAA has proven to be a lengthy process). Once with the FAA as a controller I will be working toward a pension which I will be eligible for at age 50 and saving heavily for retirement (starting about age 28).
Any advice for me? I know this post is long so I appreciate those who read it and can offer advice.
In about 12 months I will get a pretty significant raise of about $1,000/month which will not be spent and will hopefully be the basis for starting our financial future. For her as a military spouse it is difficult to find a job but she is looking. As soon as she finds one, her whole salary will also be saved. In addition, in about 5 months our living expenses will decrease by about $500/month.
Here are my current stats:
$21.5K military loan @ 2.99%
$20K student loans at various rates no higher than 6%
$1,250 emergency fund
Currently rent a home
No Children
I know we are not in the ideal situation but we are young (23) and are trying to head on the right track. My question is more toward the steps I should go about in setting a good financial foundation. The military loan is a pain in the butt. It is about $463/month. I would really like to focus on paying this off ASAP just so I don't have that monthly payment but the interest rate is so low it's hard to justify. Student loan payments are much less per month.
My thinking is to grow our emergency fund, and then as quickly as possible pay off that military loan which will increase our savings rate because that extra $463 will go into savings. I have no real abmition to pay off the student loans at the moment. Then with the extra money from my pay raise($1,000/m), living expense reduction ($500/m), loan paid off ($463/m), and possibly my wife finding employment ($1-2K/month) save as much as possible for a down payment on a house and to get us through our transition out of the military (getting in with the FAA has proven to be a lengthy process). Once with the FAA as a controller I will be working toward a pension which I will be eligible for at age 50 and saving heavily for retirement (starting about age 28).
Any advice for me? I know this post is long so I appreciate those who read it and can offer advice.