@shewolfeofwallstreet
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@shewolfeofwallstreet This is unfortunately a classic case of buying “too much house” and likely lifestyle inflation. I was told that originally both parents were working highly paid jobs when they took out their mortgage, but then decided they wanted to be more present for their kids and cut back to one. Unfortunately, now their mortgage eats up over half of their take home pay. My biggest concern here at the moment is how little they have in cash savings relative to their essential expenses— which are about $41k. That means they should have at least $120k in cash for 3 months worth of an emergency fund, ideally more since there is only one person earning an extremely high income, they have kids and they have an expensive home that is likely costly to fix. They are one-thing-not-going-to-plan away from debt. I’d like to see them closer to $250k in cash savings. I’m told the weekly massage is necessary for the neurosurgeon job, and I’m okay with that. I do think the number one priority needs to be the cash savings though: Let’s cut out the house cleaning — that’s our new Friday family night ;) I’d also like to cut shopping down to $500, eating out down to $500, fun down to $500, find $200 worth of subscriptions to cut and re-negotiate our phone bill, car insurance and cable bill. Can we cut the tutor during summer? Cut the gym during the summer? You live on the beach! You lived on a med school budget at one point — you can do this for awhile to catch up! Once we build up that Emergency Fund, we HAVE to cut back on expenses if you want to keep it to just one of you earning money. Otherwise I think the other parent needs to go back to their job. You need to open an IRA and brokerage account once the EF is built up, but get term life insurance ASAP. TELL ME: What would YOU do?!
