We make $ 80,000 a year, but we owe $ 120,000 in car and student loans. Should we have a new car?
My wife and I are in our twenties and together we make about $ 80,000 a year. Our first baby is due in early 2022, so being debt free has become a top priority in my mind. At the moment we have two cars. The one I’m driving is chargeable and has a lot of miles, but it’s in great condition. We still owe $ 30,000 on the other, and the rest of our debt is about $ 90,000 in student loans. My wife puts 40,000 miles a year on the other car for work. I told her the other day that we were downsizing the car a bit, but she’s particular about what she drives. I even found out that she had her eye on a newer vehicle that costs around $ 48,000. I do not know what to do. Can you help me?
Okay, let’s start slowly. I’m glad you saw the wisdom in controlling your money and getting out of debt. It is the first step towards financial peace.
Now, as far as the car is concerned, there’s no way in the world that I’m doing that. And honestly, I don’t care how special your wife is. You guys are broke! You’re in debt, and now she’s talking about buying a car for $ 48,000 – when you still owe $ 30,000 on one – and then spending 40,000 miles a year on it and destroying its value faster than you. can say “quickly”.
This whole idea and attitude is dumber than a rock. Absolutely not! You might have seen the light when it comes to your finances, but it seems like your wife is still in the dark and in need of some growth. You should have a long, serious talk about things and get on the same page financially – especially with a baby on the way. The future of your family depends on it.
I hope I was not clear.