I agree with the folks saying I wouldn't cut back on retirement again. You're going to lose a big chunk to taxes anyway if you cut that back. I'd also pause the extra debt repayment, do minimums only and get the emergency fund into a better place. It probably wouldn't take that long and would be a huge peace of mind. Once the EF was pretty healthy, then I'd get back to the extra debt repayments.
Thank you for the advance. 😀I’ve been doing some comparisons today on what impact cutting back would make. I know when we cut back investing before, it didn’t make a big impact on our paycheck, so I’d have to cut back more to actually see a difference, but it may not be worth it if we’re just paying more taxes and actually not getting more for debt payoff. That’s the opposite of what I want.
I love your little dashboard for your video it is so relatable that you are mostly fighting yourself. No matter what anyone says you have to be comfortable with your decision and if you are not then you are more likely to fail. (just discovered this recently lol) That being said I think if you only do employer match y'all would be doing amazing. If you leave everything the way you have it right now, I think at the rate you are flying thru this debt you will be done in no time. so, neither would necessary be wrong just don't let up is my advice. I am so Cheering you on you got this. We managed this month to get everything paid on time and put about 250 extra to debt so I am really happy.
Thank you so much, Heather!! I love what you said about being comfortable with the decision. I do think that’s so important, too. I haven’t made any changes yet, but I have been running a lot of numbers in the past couple of days, and I think that’s what I need to do to get comfortable with changes that we make 😀 Awesome job on your extra debt payment!! 🎉
We are our own biggest critics & biggest setbacks. I think you could back down on investing to just the employer match. You got this! You're already doing a wonderful job & (if it means anything) I'm very proud of y'all! ❤😊
That’s means so much! Thank you, Hailey 💕 I don’t know why I have such a fear of cutting back on investing, but I think it’s time to get over it so we can knock out this debt quickly and just be done 😫
Thank you! I know my husband would love to retire a few years early, but I’m not sure right now if that will be possible. He’s thinking like 55 though, not any earlier, so we might be able to swing it.
Loved the thumbnail Katie! You are doing all the right things! It sounds like you need the peace of mind of a significant emergency fund. I say build that up, keep the match at Marks work and work on debt. It’s hard to balance the debt vs savings, I think that is normal. You can always switch things up, pay more in debt and the less in Emergency fund. Then switch! 😂 You are so self aware of your financial situation. Don’t be discouraged! Give yourself credit! You will be fine!
Thank you, Lisa! I appreciate the encouragement! I do think having a bigger EF will be helpful! I’ve been running numbers, and I think we’ll be out of debt sooner than I originally thought even without lower my the match, but I’m hoping lowering the match will help with the EF, too. Just for a very short period!
It's always hard to know what to do. Another thing you might keep in mind is that if you slow investing for a bit and pay off the debt - that is also going to protect you to some degree if you had a job loss or something catastrophic happen because you would have fewer $$ that need to go out to debt each month. You guys are doing so amazing and will be in great shape for retirement. Aim for retiring early!!!! You'll have enough to cover your insurance premiums! I retired at 58. It's the best thing ever. Totally worth paying our own insurance premiums to have free time to travel and do a whole lot of nothing or lots of family time, hiking, reading, crafts.
Thank you, Cat! That’s very true that paying off debt puts us in a better position if we had a job loss. I would love for Marc to retire early! 58 sounds pretty amazing to me. I only hope that if we reduce investing for a bit that it won’t hinder us from doing that, but hopefully not since we are already in a pretty good place.
I like the middle ground approach you are taking right now. Dollar cost averaging and paying down debt slowly. Its a painfull process. I remember you saying that when you lowered the percentage you really didn’t see much change in his take home pay so id probably leave well enough alone and keep chugging on. You’re doing great. In other news i found a new car that i will be picking up on Saturday. I don’t know if you remember but around the time you bought your highlander i was still debating with myself if i wanted to pay cash or do 20/3/8 like the money guy recommends. I’ve decided to pay cash and it hurts lol just making the wire transfer to myself and seeing the money drop in my hysa was painful. But I’m happy with my decision ive let this torture me long enough. Im getting a 2024 audi q5.
Thank you, Crystal!! I have been running numbers and doing some calculations the past couple of days, and I think we can be debt free much sooner than my original plan, even if we don’t change anything! I’m still undecided on what I’ll do, but either way, I’m hoping to be debt free by the end of 2026 at the latest. I hope you love the new car!! How amazing that you are able to pay with cash. I’m sure that will be so so worth it. It sucks to set the money you have saved for so long disappear, but it’s so much better than paying interest! You did it the right way 😃
I wouldn’t completely pause it but I would consider lowering it and the extra go strictly to debt pay off. I only say this because you have over $300k already invested and it sounds good to pay off debt in 2 years. Once you pay off debt you might be able to invest more on a taxable brokerage and definitely enjoy the extra money with the family. Great update.
Thank you for the input! It does sound good to be debt free in two years! We definitely wouldn’t ever stop investing completely. I still want to get that match 😄
2 million is a fantastic number! And that’s if you didn’t put another penny into it?!? Wow, what an accomplishment! 🎉 I’d definitely cut back to employer match and focus on the debt payoff/building up your emergency fund for the next 2-ish years, then you can put TONS towards investing and enjoying your life!!! Recently I was feeling down about “not investing more when I was in my 20s,” and my financial advisor told me to be thankful I still invested some because compounding growth will still do it’s thing!! That will be the case for your 300k if you pause for a few years. I’ve been watching you since summer of 2021 and it has been so cool to see your growth- in knowledge and income. I started seriously budgeting (was budgeting before but not serious) in Jan 2021, and you’ve been my online “budget buddy” whether you know it or not. 😂 it so funny how things you talk about are things I am feeling currently too. So thank you for sharing your thoughts and videos. Love the thumbnail!
Kristen, I remember you being here from the beginning, and I appreciate that so much! It honestly makes me so happy that I have been your budgeting buddy! That’s why I made this channel, to make people feel less alone 🧡 I’m so glad you are in a good place with your investing. Compound interest is amazing! And you really can do a lot if you start in your 30s or 40s. I’m looking forward to the day when our only financial goal is investing 😀 it feels like we’ll get there soon. And that 2+ million isn’t a guarantee of course, but that’s what the calculators tell me. Of course we wouldn’t NOT put anything into it, but it is nice to know that we’d still have a nice amount if we couldn’t put anything in.
While time matters so does consistency. As long as you’re consistent it will still grow. Pretty sure I’ve heard to just go with the employer match/maximum contribution limit. If it was me I’d just do the match, use most of any extra for debt and sinking funds because the funds will help prepare/prevent the need to go back into any debt. I transferred $510 and paid off an online payday advance! Yay! I also transferred $5 to HYSA to start a month ahead fund/emergency fund
Thanks for sharing your transfer!! Awesome job getting your payday advance taken care of. And nice work getting that month ahead fund started!! I agree with you think we definitely need to have that savings to keep us safe from further debt. Thanks for watching 💕🧡
I feel this. We need to pay off debt but I really want to put more towards our brokerage account. I know it’s probably more wise to payoff debt but investing is more fun lol. It’s a constant struggle. You’re doing great!
Investing is more fun! 🤣 I mean I love how it feels when you pay off a debt, too, but investing is fun every time where debt payoff only feels fun when a debt is gone.
As Dave Ramsey says - you wouldn’t borrow $100k with interest to invest it - investing instead of paying off debt is the equivalent of borrowing money to invest it! keep going!!!
You know me, I am always for getting debt free. I would do the match and pay that debt off and get emergency fund up. You are assuming that you will all make it to retirement. Life happens and you may need money in your 40's and 50's. My sister died at 43. She was sick 7 years before that. Getting debt paid off sets you up for less stress if someone gets sick or hurt before retirement. With equity in your home and the money you already have in retirement funds is really great. For goodness sakes become debt free! It is so wonderful. I didn't realize how much it hung over my head until it was totally gone.🌞
That’s true! I do, and it’s going even better than expected! I may just be impatient. I’m going to crunch some numbers and do a lot of thinking before I change anything. Thank you, Bobbi! 💕
As you add to your Emergency Fund, hone down with a written list of what you want it to cover. Add rough generalized dollar amounts in nice even numbers. But also and equally importantly add a column or few covering how liquid you need the monies to be for each item to be covered. Do this on computer or in pencil because the items to be covered and all other info is probably going to be subject to change.
In your previous video, I put a comment that I think you’ll be out of debt April 2026. I think you’re going at a fabulous rate. I would not change a thing. Keep doing what you’re doing. Every 23 years prices double. The biggest thing I would do after you pay off debt, I would open a brokerage account and start investing their. That way you have money to draw on in case Mark wants to get out before 62 or 67.
Oh thank you! I know you are usually very pro accelerated debt payoff, so it actually makes me kind of excited that you don’t think we need to push any harder at the expense of investing. Your comment was one that made me realize we could possibly be done by 2026. That still blows my mind, but I think you are right that it’s possible. We do have a brokerage fund, but I haven’t need adding to it lately. Once we are debt free, I do plan to ramp it up significantly 😊
I have slowed down on investing only till I’m debt free (except the house). Then I will be able to throw so much money in investments after that. You got this either way, but if you want to be debt free in 2 years, then go for it!!!
That’s amazing!! I’ve been running numbers today to see what time like I can expect to be debt free with cutting back versus not, and I’ll share soon 😄
I get this way too lol, I think folks who are interested in personal finance can often times stress ourselves out over money and what’s important. I’m struggling with that thought with building up my emergency fund higher or putting more money into the brokerage account.
It does seem like there’s never enough to do everything you want at once, right? You have been investing so much for so long, I doubt it would affect you too much to cut back for your EF…but also, I know, easier said than done! 😂
I get the impression that numbers would be helpful for you. How much money could you have extra if you were to go down to the match? (Don’t forget, your taxes will go up as a result.) how many months would you need to go down to the match to be able to pay off your debts earlier? If it ends up being a relatively short time, then sure, pay off the debts more quickly. But if it doesn’t move the needle much I personally wouldn’t change anything
Hello Katie, I do not usually comment but I can totally rely on what you say about cutting back on retirement for other financial purposes even though I know that we are on track for it. I do not really have debt. But still. I have major home renovations to do and instead of saving for it I kept investing (since we cannot do both in a efficient way) and now I have to use an emergency fund I've just finished to build to finance this renovation. Your video really comfort me in cutting back to rebuild my emergency fund as soon as possible. It is hard because I am an "investor shopaholic" I guess. I just wanted to share my thoughts, I really like your content and seeing your journey and the great job done. I do understand your difficulties to do so. But sometimes we've got to to what we've got to do. And somehow it is a good problem to have. Good luck for your choice. When it comes to me I need to stick to mine.
Thank you for taking the time to comment! I truly appreciate it 🥰 I love the term “investor shopaholic.” It’s so hard to stop or cut back on investing when you have seen how awesome it can be, even if that’s the best thing to do for a short time. Do we need to start an Investors Anonymous group? 😬 I’m so glad the video gave you some comfort, and I’m betting that getting your EF built back up will be a huge comfort as well.
Katie, I am now watching your second half of the video. Oh, I would love to talk, and give you "rich uncle" advice, and share my personal situation that I don't feel comfortable sharing in a YT comment. So if you can ever look at the other way, and want to share how to do a video conference, let me know. In the mean time. I understand your feelings. Like you , I did start investing in my 20s. But I did stop making new investments in my 50s. And I think you know where we are. My #1 comment to you, is take a deep breath. You ARE doing great. And there is NO one answer or way to live your life. Yes, I think reducing debt earlier is a very good and smart way to go. But completely sacrificing and not enjoying life could have its own problems. Also, will you be OK if in your 60s you have a portfolio MUCH bigger than your peers? Remember the majority of Americans retire living mostly on Social Security. (Which is just ONE reason why it wont go away. It might change, but not go away). You and Marc, need to discuss your dreams and make sure you are on the same page. I think you are, but if he is not as focused on investing now, and wants to spend more, discuss what you can do. Again, let me know if I can help, or you want to discuss more one on one.
I love that you always bring up enjoying life! We definitely want to do that. I think part of the reason I want to speed up debt payoff is so that we get to the place there we can really enjoy life faster. However, I know we really are doing well with the debt payoff. I’m glad you pushed me to pay off fedloan 5 this year. I think we’re going to make that happen! I try to get Marc’s input with money more, but it’s hard because he’s just so laid back and says “whatever you want to do.” I need to get him fired up about something 😂
I'm with you regarding paying down debt vs investing as well. I've decreased the amount I invest in my overall Brokerage account and it definitely has me in my feelings lol. You are not alone. Investing is a big thing for me as I'm playing catch up in my mind.
Ahh it’s so hard to do everything, isn’t it? We used to invest in a brokerage fund as well, and we’ve already cut that out. I’m so hesitant to cut back on Marc’s 403b investing, but I’m not sure if we should just suck it up and do it.
@KatieoftheHouse I max out my 401k. I'm debating on the IRA currently. I feel like those are invested dollars we can't get back. I think I'll pause the Brokerage investing to do the IRA. I'm hoping to have my SL paid off by end of next year.
I have the same struggles as you! I go back and forth on debt payoff or invest/save at least 10 times a month! We have 1 more debt to payoff (aside from our mortgage) so we are set on paying it off in the next few months and then we will max out retirement contributions afterwards.
I’m glad I’m not the only one who goes back and forth sometimes. It makes me feel a little crazy 😂 Huge congrats to you on your debt payoff progress! That’s so exciting that you are almost done!
hi Katie, im def getting dejavu from this video. We (longtime viewers) already know u can stop investing so aggressively and put more towards debt to get it paid off sooner and be absolutely fine! i think u should reduce the retirement and work on your E fund goal and then work on paying more towards debt pay off. At least having the e fund bulked up will give u some peace of mind regarding if something happening and not needing to dive into investments.
I know I’m so indecisive 😭 a lot of people had said to prioritize the WF first, and I was surprised, but I do think that will make me feel a lot better if we can build it up to three months.
Hi Katie, I’m going to throw out an alternate to what many are suggesting. My suggestion is to continue as you are until fed loan 5 is gone and you have gotten rid of 6 figure debt. At that point do your calculations as I’m sure you will for when you would knock out the last $99,999. My guess is you will be soooo motivated to get it gone that the loss of 1 1/2 years of investment cutback will be so short you won’t have time to worry. I see a 2026 Christmas as a debt free Christmas.
Thank you, Debra!! I do think you are right about that 2026 goal! I have been running numbers since I posted this, and I think I’ve come up with a plan I’m comfortable with. I’ll share soon, but I do think we can be done with the debt in 2026 🎉
hey Katie! the back and forth between investing and paying off debt is so relatable. i have that same conversation with myself on a regular basis. i’ve had covid these past two weeks, so i sadly couldn’t focus on transfers this week. i did get a raise when i came back to work, so i’m excited for the opportunity to save and invest more money! :)
I hope you are feeling better now 😭 Huge congrats on your raise!! It’s hard to balance investing and debt payoff, but getting a raise certainly will make it a bit easier 🎉
Good self talks !!! Boy Katie you and I are so similar ! We never stopped cut Mr Bills retirement investments the whole time we were in debt ! It’s the one thing we really couldn’t do that Dave recommended … 1000 dollar EF done no problem ! Stop retirement WHATtttttttt ! Katie get the debt gone … 1 to 2 years ! You’re going to do it ! Snowball it ! It’s going to jump sooooo fast once you get fed loan 5 gone !!!! Glenda
Thank you so much, Glenda! I’m glad you see yourself in me a little because you seem so wise with your finances, and I know you are in a good place now. It’s so hard to back off on retirement. I know we’ll be ok if we do as long as it’s temporary, but it’s still scary,
Thanks, Izzy! I always tell my boys that, too, and I say if the decision is right, you will feel at peace with it, so I’m trying to find that peace to know what’s right 🧡
Personally I wouldn’t guess or make other peoples’ guesses my game plan. I’d run the numbers on a debt payoff calculator and I’d run the numbers on an investment calculator for what you’re currently investing and the lower percentage you’re thinking of switching to. Once you have all the factual numbers, you’ll be able to make a plan for what you want to do. Also, if your emergency fund is lacking, that should get a boost too and be part of the equation for where extra money should/could be going. Sometimes having the actual numbers can help remove some of the emotion out of trying to decide where to send funds because you’ll be able to see the whole picture for what the future could hold and different possibilities to get where you want to be.
Yes! You are absolutely right. I do need to run all of the numbers because then I won’t have any doubt and I’ll just KNOW what the best decision is. Thank you 😀
@@KatieoftheHouse money also isn’t black and white, you could put any income you earn towards the emergency fund on top of the $500, or whatever your chosen amount is, and additional income your husband makes towards the debt. It doesn’t have to be an all or nothing approach. I’d definitely run the numbers first though to at least see what the starting point is for any plans you want to make.
Thank you for the shout out!! I am so excited for you to stomp down that next fed loan! It is scary not to invest to the max, but I bet it will feel amazing to have that first month without any debt payments! 🎉😊
Thank you!! I really cannot wait to be debt free. I know it’s going to feel so good when we get there. I am definitely very nervous about reducing investments though.
OMG, I love that thumbnail. Wow, yay, that is an awesome Fed Loan payment. I know you are going to make it. I love the conversation you are having with yourself with us. You demonstrate in this video that each situation is very different and even that people that are doing amazing (like you and your family) there is a constant struggle knowing if you are doing the right thing.
Your comments always make my day, Dee! Thank you. I know that I likely will not feel 100% at peace no matter what I do because I’ll always feel like I could do better with whatever is on the back burner. I just need to figure out some numbers and decide what I’ll make me feel the most peace right now.
Have you put everything into a debt payoff calculator? Try that and see what’s the absolute fastest you can pay off the debt! That might push you over the edge to finally do it.
You will be really happy that you continued to invest consistently. You could cut back a little. Mark may want to take some time off of work. Enjoy your thirties and forties as much as possible.
Hi Katie, I would contribute the amount to get the employer match and stamp out all the debt. Then go up to 15% and get the house paid off. Then you can invest in other things as well. You are doing great! I am glad you are seeing to lower your retirement contribution and paying more debt. It is so much easier to pay off debt, and with no house payment it is awesome! You can do so much more to enjoy life. Just hustle for a few years, and to quote Dave Ramsey, "Live like no one, and give like no one!" You are doing a great job! Your husband must be so proud of you!
That honestly sounds so wonderful, Ellen! I think we will be able to get there pretty quickly (at least with non-mortgage debt). I can feel the light at the end of the tunnel getting closer and closer!
I think if you take a more middle of the road approach you would feel better. Putting into Marc’s 403b is tax-favored, so it’s probably best to continue to invest in his 403b. But I would also talk with Marc more about early retirement. He works so hard, and I don’t want you to miss out on special times with your children, especially as they become teens and into their 20s. Also, if you want to keep investing, you two are in a great place to invest in the future for your kids through 529s or other accounts. That would set them up for success into adulthood
Thank you, Brooke! All good points! I definitely don’t think we’ll be in a bad place if we stick to the middle of the road and keep doing what we’re doing. I’ve been running some numbers since I made this video to try and figure out what to do, and I actually think we can get out of debt much quicker than I originally thought if we keep doing what we’ve been doing.
If you back down your 403B contribution, you have to be absolutely firm that every cent over what the "usual" paycheck would be goes straight to debt. No waiting until the end of the month, or using that extra income for this or that just this one time or you will get used to having it and that is dangerous. I do this anytime I get a raise as well, keep living on the old salary and sweep every cent over it from a new salary to savings.
I am going down to 2% on my 403b Roth for the rest of the year so that I have money to pay off rental maintenance expenses. I have already put 9k in the ROTH this year and I am at a 49% savings rate at this point in the year.
We went down to 1% because it was matched twice. when we paid off all the debt we just went to the full match so we could save an emergency fund and now we are maxing out!
ahh that’s so amazing! I’m so glad you were able to get to the other side of debt payoff and are now maxing out your investments! That’s definitely our goal! 🎉
Relax. You are doing great! Stay consistent take your time and you will win. Continue building your savings and investments along the way. Your savings will cover you because there will be some bumps in the road. Like you stated keep investing because the time in market matters. I think you shouldn’t worry and stay consistent with your habits because over time it will pay off. Doing anything too fast like rushing to pay off the debt is only a quick dopamine fix. Win this the easy way don’t work to hard!
Oooh that’s a different perspective, but I do like it! You’re absolutely right that this is going to take time either way. I am still torn on what I want to do. I really hate the debt and want it gone, but I know it won’t happen overnight. I still need to run some numbers and compare. Maybe it wouldn’t make a huge difference in the timeline to debt freedom, in which case, I’ll keep going as I have been. If it does…I definitely have some things to think about. Thank you so much for this comment and offering a different perspective!
I definitely think slowing investing to just the match might be a great option and focus on the Debt Payoff and your Emergency fund. It is a difficult decision! We are trying to balance our investing, saving, and then specifically saving for our kids 529s, plus we have 2 teens on their way to driving age (so more cars). I'd love a video of you figuring out your Emergency Savings goal, if you haven't already done that? Also, I enjoy watching when couples budget together. Would your husband ever join you for a video? I'd love to hear his perspective! I try to balance with my husband since I love this stuff.
It’s so hard to balance everything!! It sounds like you guys are trying to do a lot of the same things that we are. My oldest is 13, so I’m starting to think about driving. That’s another reason I want to pay off debt soon so we can start saving more for him! I think I will share more about our EF soon! I did a video talking about how much we needed for our EF before, that that was probably over a year ago now, and things have changed so much. I don’t know if Marc would want to do a budgeting video with me, but he did say he’d film a Q&A with me, so maybe we can do that soon 😄
@@KatieoftheHouse My oldest is 15 (My other one is 13) and we are in the thick of learning to drive! Talk about stressful! That would be awesome if you could get Marc to do a Q&A! Love your videos!
@@MomOf2Boys19 ooh good like with driving! I don’t look forward to those days 🤣 And thank you!! I’ll see if we can make a Q&A work before the year is over 🧡
I would cut investing down to the match. It would be really hard for me to cut off 100% especially w/ giving up free $$ through the match. Y’all have set yourselves up for success. Awesome transfers😊 As I’m writing this I’m waiting @ the dentist for a abscess🤦♀️ so I’m not making any transfers until I see bill😂
Oh no! I hope your appointment goes well. That sounds painful 😭 Thanks for the advice, Cat! It would definitely bother me WAY too much to not get the match, so no matter what, well at least do the 2% to get the match.
Hi again, I am back in MA,. We sold this house, (crossing my fingers), and will be moving FT to MD in Mid October. Hopefully in the near future I will sell the other MD home too. And by November this craziness will be over Just came back from California (saw my sister and PINK.) Next week off to Aruba. (I told you my life is crazy right now). But come November/December things should settle down for me. I will tell you selling, packing and moving after living in the same house for over 40+ years has been an experience. As far as you guys, not much new to comment, but keep up as you are doing. Again I do hope you will plan for sometime in the future for you to enjoy yourself, be it with the kids, or just with Marc. Maybe next week I will be writing to you in Aruba. Jon
Absolutely I would cut it back. I should be more scared than you...that's for sure. 😂😂😂 You are in a great position. You will have more investing power to get aggressive in the future when your debt is paid off.
Thank you, Allison! For what it’s worth, I think you are doing an awesome job! I think we all get a little scared when we think about having enough saved for retirement 😂
This is just my thoughts ❤ look how much money you lose each month in interest you have to pay on the debt. If you get the debt paid off you have so much more for investments, or even be able to help With your boys school when it’s college time for them. Don’t take anything I say personally because I’m just giving my thoughts, have a wonderful day
That’s so true!! We’ll have so much more if we pay off the debt, and we’ll be able to save more for the kids. And don’t worry, I know you are just giving your opinion, and I did ask. I appreciate it so much ❤️❤️
If I were you, I'd give myself a firm timeliness to pause the retirement investing. Say 6 mo ths to a year, no more than a year. I'd put everything into your debts plus your normal payments and then start investing after that timeliness regardless of where you are in your debt payoff journey. It's very easy to stop investing, remember the magic of daily compounding interest. Do what you feel is right, just place hard deadlines. Good luck!
I say cut everything and pay off the debt ASAP. It’s a heavy chain and wears you down. We cut everything and paid off 100K as fast as we could and now we can invest whatever we want. It’s a brief pause. No big deal.
Thank you for saying that. I always love to hear from people who have been through and have made it to the other side. You’re so right that it’s a short term sacrifice, and I think it will be so worth it. It really does weigh me down.
I would normally say just invest up to match but 2% match would mean only 4% of his income to that is dollar cost averaging into the market. I would do whatever nets 7-10% of income into the 401k.
@@KatieoftheHouse yes, his match is lower than typical. My employer is extremely generous but no longer provides pension benefits but when they did offer (only a few years when I started) they matched 5% to our 5%. (Now they also give us an additional 4% no matter if you contribute to make up for no pension). Just some things to think consider…
It's always a struggle of where your money should go. Our perspective is to never leave money on the table, so if Mark gets match from his employer we would put in the minimum amount to get the match and no more. Then we would focus on building up an emergency fund just enough to cover a major incident happening that would require you to use credit cards to fund, like a furnace going or needing a new roof. Once you have enough to cover an incident like that. Once that is at that level, $10k, $15k, whatever the amount you both feel is necessary, then we would put all the rest against the highest % debt item. Once that debt is paid off, your family will immediately get a raise of whatever the % is that you are paying on that debt. Then you can focus to build up that Emergency fund more and started piling in on investments. Obviously, this is all personal and you and your family need to do what you think is right for you. This is how we started our fire journey to building wealth and it has worked.
Thank you so much for taking the time to say this. I think having 10-15K in our EF would make me feel much better. We only have a little over one month of expenses saved now. It could also cover our deductibles if need be, but having only one income makes me feel a little nervous, and I’d like to have at least 3 months saved. I’m not sure if I should work on this slowly along with debt payoff, do it now, or wait til the debt is paid 😅 I think it’s interesting that you focused on a solid EF before paying off debt! That usually seems to be the opposite of what most people say, but I see the value in that because it being neg a so much peace of mind.
@@KatieoftheHouse Our Emergency Fund looks way different now as we built it up from $10k to 6 months of expenses (in case we are both out of work). The $10k would cover most things that would come up so we wouldn’t have to use a credit card. That’s where most people get hit hard because they have no other choice since they might only have 1k or so in their Emergency Fund. And CC int is 22%+ so you continue to lose.
Remember financial calculators are not a guarantee of the future. I would keep investing. If you can pay of the debt in 4 years and be debt free its worth it to keep investing. If you were not serious about the debt I would say to pause and pay it down but you seem very serious. Keep the Faith.
Thank you! I’m glad that you can tell that I am serious about it. I do think we’ll have it all paid within 4 years, honestly, hopefully sooner! That’s one reason I’m hesitant to pull back on investing because I know that we’ll get there with the debt payoff. We are making awesome progress. I just get impatient sometimes and want it gone YESTERDAY 😂
@@KatieoftheHouse I get it. I paid my house off early. During the process no matter how much I paid it didn't seem like it was going down fast enough (for me.) But now that I am here I am glad I kept investing as well. You will get there. Keep up the good work.
Investing is hard for me to fully understand. For me, I would rather work on paying off my mortgage/bills first than invest that same money. Because your money has to sit for a long time to grow, paying off your bills and then investing makes more sense to me. Hey, what do I know?
No worries! I wish finance was talked about in school more often so people would be taught more about investing earlier in life. Investing is a very powerful tool for wealth growth. That being said, debt interest will eat away at wealth growth as well, so you are absolutely right that paying debt is so important ☺️ I’m going to shift our priorities a bit and make sure our debt is paid off faster. Thanks so much for watching and commenting ❤️
That’s definitely one of my hesitations. We are already making good progress. I think I need to do some calculations and see how big of a difference cutting back could make. If it’s not significant, it might not be worth it
Personally, I don't think prioritizing debt payoff over savings and investing is a good idea. If you are going to reduce your investments, put it towards the emergency fund to get that built up to what you need. IMO, emergency funds should always be priority over debt. You don't know what is going to happen and having that cushion is very important. I also wouldn't reduce investment payments to pay off debt. Sure, if you don't add anymore to retirement you say you'll be fine, but what if you want to retire early? What if something happens and you are forced to retire early? You are already putting so much extra to debt payoff, I think keeping a balanced approach to debt and investments and savings is important.
Have you calculated what you actually need in retirement? I may have missed that video (or maybe you haven't shared, and you don't have to). But if you haven't actually calculated your retirement needs, I would do that before reducing investments. Maybe you are over investing and can cut back, but maybe you'll find you aren't investing enough.
Thank you for the thoughtful comment ☺️These are all very good points! I really have so much to think about. I have not crunched the numbers on retirement yet. I feel like that’s hard to do since we are so far off from it right now. That does support your point that that we really have no idea how much we will need. I really don’t want to cut back on investing at all, and I have always tried to have a balanced approach. Except with savings… that really isn’t where it should be. I really am not sure what I’ll do yet, but I know a lot of math and calculators will be involved! 😅
If you are thinking long-term, look at the projected impact on your net worth. This probably suggests investing over debt reduction (depending on interest rates/taxes/etc). I get antsy every so often and want to pay off the mortgage faster and my wife has to remind me that I had decided it was better to keep it and that I need to stick with our decision. I guess you need a wife to tell you to stick with your plan.
That’s great advice!! Ive been plugging in numbers to debt payoff and investment calculators like crazy, and I’ll definitely consider net worth as well. Thank you 😊
Amazing thumbnail! Forgot to comment 🤦🏼♀️ I wouldn't pause the investment completely, but if you are doubting I would do calculations to see what you would actually get out after taxes just to see if it's worth it. Cause I remember you saying that you didn't really see a difference when you lowered the contributions last time. Our transfers until Thursday were €4.28 change to vacation and €15.23 cashback to the Window Replacement Fund.
Thanks for sharing your transfers, Sara! And yes, you are remembering correctly that I didn’t notice much difference when I cut back last time, but I was only cutting back 2% of what we were putting in, so I’m thinking we might see more of a difference if we cut back more. I have been doing lots of calculations though, and I’m very optimistic that we can be out of debt sooner than I originally thought (2028), so I’m excited to share all of that soon 😄💕
You guys are doing great! Yes to a bigger paycheck! I’m on the same struggle. I want to invest more but I want to pay my car off. Always use the match. Always. Did you see a big difference with the adjustments earlier in the year? Also the tax advantage? I’m with you, going back and forth but I see both sides. I would reduce the investing a bit and see how you feel. I too am wishy washy! lol!
I didn’t see a huge difference earlier this year, which is why I went back up. BUT I also didn’t go down to 2%. The tax advantages are nice too 😫 decisions, decisions. Why can’t there just be enough money for all of our goals, Ang?!
I agree with the folks saying I wouldn't cut back on retirement again. You're going to lose a big chunk to taxes anyway if you cut that back. I'd also pause the extra debt repayment, do minimums only and get the emergency fund into a better place. It probably wouldn't take that long and would be a huge peace of mind. Once the EF was pretty healthy, then I'd get back to the extra debt repayments.
Thank you for the advance. 😀I’ve been doing some comparisons today on what impact cutting back would make. I know when we cut back investing before, it didn’t make a big impact on our paycheck, so I’d have to cut back more to actually see a difference, but it may not be worth it if we’re just paying more taxes and actually not getting more for debt payoff. That’s the opposite of what I want.
I love your little dashboard for your video it is so relatable that you are mostly fighting yourself. No matter what anyone says you have to be comfortable with your decision and if you are not then you are more likely to fail. (just discovered this recently lol) That being said I think if you only do employer match y'all would be doing amazing. If you leave everything the way you have it right now, I think at the rate you are flying thru this debt you will be done in no time. so, neither would necessary be wrong just don't let up is my advice. I am so Cheering you on you got this. We managed this month to get everything paid on time and put about 250 extra to debt so I am really happy.
Thank you so much, Heather!! I love what you said about being comfortable with the decision. I do think that’s so important, too. I haven’t made any changes yet, but I have been running a lot of numbers in the past couple of days, and I think that’s what I need to do to get comfortable with changes that we make 😀
Awesome job on your extra debt payment!! 🎉
We are our own biggest critics & biggest setbacks.
I think you could back down on investing to just the employer match. You got this! You're already doing a wonderful job & (if it means anything) I'm very proud of y'all! ❤😊
That’s means so much! Thank you, Hailey 💕
I don’t know why I have such a fear of cutting back on investing, but I think it’s time to get over it so we can knock out this debt quickly and just be done 😫
I'm here listening while working! I love the thumbnail! Lol ❤❤❤
Haha thank you! It was different but fun 😁
Just try just the match for a couple months and see how you feel. 2 months is a smidget for an entire investing career.
Very true! Thank you
You’re doing awesome. If it were me, I would pause investing until debt is paid off, unless early retirement was your goal
Thank you! I know my husband would love to retire a few years early, but I’m not sure right now if that will be possible. He’s thinking like 55 though, not any earlier, so we might be able to swing it.
Loved the thumbnail Katie! You are doing all the right things! It sounds like you need the peace of mind of a significant emergency fund. I say build that up, keep the match at Marks work and work on debt.
It’s hard to balance the debt vs savings, I think that is normal. You can always switch things up, pay more in debt and the less in Emergency fund. Then switch! 😂
You are so self aware of your financial situation. Don’t be discouraged! Give yourself credit! You will be fine!
Thank you, Lisa! I appreciate the encouragement! I do think having a bigger EF will be helpful! I’ve been running numbers, and I think we’ll be out of debt sooner than I originally thought even without lower my the match, but I’m hoping lowering the match will help with the EF, too. Just for a very short period!
@@KatieoftheHouse What you have going for you is that you are financially aware. You are blessed!
You are doing great!!! Get that debt knocked out as quickly as possible. You can’t believe how much better you will be able to breathe once it’s gone.
That’s what I want: to be able to breathe and not stress over it any longer. Thank you 😊
It's always hard to know what to do. Another thing you might keep in mind is that if you slow investing for a bit and pay off the debt - that is also going to protect you to some degree if you had a job loss or something catastrophic happen because you would have fewer $$ that need to go out to debt each month. You guys are doing so amazing and will be in great shape for retirement. Aim for retiring early!!!! You'll have enough to cover your insurance premiums! I retired at 58. It's the best thing ever. Totally worth paying our own insurance premiums to have free time to travel and do a whole lot of nothing or lots of family time, hiking, reading, crafts.
Thank you, Cat! That’s very true that paying off debt puts us in a better position if we had a job loss. I would love for Marc to retire early! 58 sounds pretty amazing to me. I only hope that if we reduce investing for a bit that it won’t hinder us from doing that, but hopefully not since we are already in a pretty good place.
I like the middle ground approach you are taking right now. Dollar cost averaging and paying down debt slowly. Its a painfull process. I remember you saying that when you lowered the percentage you really didn’t see much change in his take home pay so id probably leave well enough alone and keep chugging on. You’re doing great.
In other news i found a new car that i will be picking up on Saturday. I don’t know if you remember but around the time you bought your highlander i was still debating with myself if i wanted to pay cash or do 20/3/8 like the money guy recommends. I’ve decided to pay cash and it hurts lol just making the wire transfer to myself and seeing the money drop in my hysa was painful. But I’m happy with my decision ive let this torture me long enough. Im getting a 2024 audi q5.
Thank you, Crystal!! I have been running numbers and doing some calculations the past couple of days, and I think we can be debt free much sooner than my original plan, even if we don’t change anything! I’m still undecided on what I’ll do, but either way, I’m hoping to be debt free by the end of 2026 at the latest.
I hope you love the new car!! How amazing that you are able to pay with cash. I’m sure that will be so so worth it. It sucks to set the money you have saved for so long disappear, but it’s so much better than paying interest! You did it the right way 😃
I wouldn’t completely pause it but I would consider lowering it and the extra go strictly to debt pay off. I only say this because you have over $300k already invested and it sounds good to pay off debt in 2 years. Once you pay off debt you might be able to invest more on a taxable brokerage and definitely enjoy the extra money with the family.
Great update.
Thank you for the input! It does sound good to be debt free in two years! We definitely wouldn’t ever stop investing completely. I still want to get that match 😄
2 million is a fantastic number! And that’s if you didn’t put another penny into it?!? Wow, what an accomplishment! 🎉
I’d definitely cut back to employer match and focus on the debt payoff/building up your emergency fund for the next 2-ish years, then you can put TONS towards investing and enjoying your life!!! Recently I was feeling down about “not investing more when I was in my 20s,” and my financial advisor told me to be thankful I still invested some because compounding growth will still do it’s thing!! That will be the case for your 300k if you pause for a few years.
I’ve been watching you since summer of 2021 and it has been so cool to see your growth- in knowledge and income. I started seriously budgeting (was budgeting before but not serious) in Jan 2021, and you’ve been my online “budget buddy” whether you know it or not. 😂 it so funny how things you talk about are things I am feeling currently too. So thank you for sharing your thoughts and videos.
Love the thumbnail!
Kristen, I remember you being here from the beginning, and I appreciate that so much! It honestly makes me so happy that I have been your budgeting buddy! That’s why I made this channel, to make people feel less alone 🧡
I’m so glad you are in a good place with your investing. Compound interest is amazing! And you really can do a lot if you start in your 30s or 40s.
I’m looking forward to the day when our only financial goal is investing 😀 it feels like we’ll get there soon.
And that 2+ million isn’t a guarantee of course, but that’s what the calculators tell me. Of course we wouldn’t NOT put anything into it, but it is nice to know that we’d still have a nice amount if we couldn’t put anything in.
While time matters so does consistency. As long as you’re consistent it will still grow. Pretty sure I’ve heard to just go with the employer match/maximum contribution limit. If it was me I’d just do the match, use most of any extra for debt and sinking funds because the funds will help prepare/prevent the need to go back into any debt. I transferred $510 and paid off an online payday advance! Yay! I also transferred $5 to HYSA to start a month ahead fund/emergency fund
Thanks for sharing your transfer!! Awesome job getting your payday advance taken care of. And nice work getting that month ahead fund started!!
I agree with you think we definitely need to have that savings to keep us safe from further debt.
Thanks for watching 💕🧡
I feel this. We need to pay off debt but I really want to put more towards our brokerage account. I know it’s probably more wise to payoff debt but investing is more fun lol. It’s a constant struggle. You’re doing great!
Investing is more fun! 🤣 I mean I love how it feels when you pay off a debt, too, but investing is fun every time where debt payoff only feels fun when a debt is gone.
As Dave Ramsey says - you wouldn’t borrow $100k with interest to invest it - investing instead of paying off debt is the equivalent of borrowing money to invest it! keep going!!!
Oh, that’s a good explanation!
You know me, I am always for getting debt free. I would do the match and pay that debt off and get emergency fund up. You are assuming that you will all make it to retirement. Life happens and you may need money in your 40's and 50's. My sister died at 43. She was sick 7 years before that. Getting debt paid off sets you up for less stress if someone gets sick or hurt before retirement. With equity in your home and the money you already have in retirement funds is really great. For goodness sakes become debt free! It is so wonderful. I didn't realize how much it hung over my head until it was totally gone.🌞
That’s such good point! We really never know how long we’ll have.
I’m so sorry about the loss of your sister. 43 is too young.
Hi Katie,
Ahha, that is a hard question to answer. Personally, I would continue to invest! You already have a debt payoff plan.
That’s true! I do, and it’s going even better than expected! I may just be impatient. I’m going to crunch some numbers and do a lot of thinking before I change anything.
Thank you, Bobbi! 💕
You know your answer. Clean up your debt and you’ll have lots of time to do whatever you want!
Yes!! Thank you 😊
As you add to your Emergency Fund, hone down with a written list of what you want it to cover. Add rough generalized dollar amounts in nice even numbers. But also and equally importantly add a column or few covering how liquid you need the monies to be for each item to be covered. Do this on computer or in pencil because the items to be covered and all other info is probably going to be subject to change.
Great advice, Terry! I do have a list for our EF, but it needs an update 😀
In your previous video, I put a comment that I think you’ll be out of debt April 2026. I think you’re going at a fabulous rate. I would not change a thing. Keep doing what you’re doing. Every 23 years prices double. The biggest thing I would do after you pay off debt, I would open a brokerage account and start investing their. That way you have money to draw on in case Mark wants to get out before 62 or 67.
Oh thank you! I know you are usually very pro accelerated debt payoff, so it actually makes me kind of excited that you don’t think we need to push any harder at the expense of investing. Your comment was one that made me realize we could possibly be done by 2026. That still blows my mind, but I think you are right that it’s possible.
We do have a brokerage fund, but I haven’t need adding to it lately. Once we are debt free, I do plan to ramp it up significantly 😊
I have slowed down on investing only till I’m debt free (except the house). Then I will be able to throw so much money in investments after that. You got this either way, but if you want to be debt free in 2 years, then go for it!!!
That’s amazing!! I’ve been running numbers today to see what time like I can expect to be debt free with cutting back versus not, and I’ll share soon 😄
Absolutely go down to the match and get to town on that debt -- you are fine for retirmement.
Thank you!! I know this is the right answer, but it is nice to have confirmation 😀
I get this way too lol, I think folks who are interested in personal finance can often times stress ourselves out over money and what’s important. I’m struggling with that thought with building up my emergency fund higher or putting more money into the brokerage account.
It does seem like there’s never enough to do everything you want at once, right? You have been investing so much for so long, I doubt it would affect you too much to cut back for your EF…but also, I know, easier said than done! 😂
I get the impression that numbers would be helpful for you. How much money could you have extra if you were to go down to the match? (Don’t forget, your taxes will go up as a result.) how many months would you need to go down to the match to be able to pay off your debts earlier? If it ends up being a relatively short time, then sure, pay off the debts more quickly. But if it doesn’t move the needle much I personally wouldn’t change anything
Good point! I probably need to crunch some numbers to be sure. Thank you, Daniel!
Debt payoff! Being free gives you so many options.
I cannot wait to be free! 🤩
Hello Katie, I do not usually comment but I can totally rely on what you say about cutting back on retirement for other financial purposes even though I know that we are on track for it. I do not really have debt. But still. I have major home renovations to do and instead of saving for it I kept investing (since we cannot do both in a efficient way) and now I have to use an emergency fund I've just finished to build to finance this renovation. Your video really comfort me in cutting back to rebuild my emergency fund as soon as possible. It is hard because I am an "investor shopaholic" I guess. I just wanted to share my thoughts, I really like your content and seeing your journey and the great job done. I do understand your difficulties to do so. But sometimes we've got to to what we've got to do. And somehow it is a good problem to have. Good luck for your choice. When it comes to me I need to stick to mine.
Thank you for taking the time to comment! I truly appreciate it 🥰
I love the term “investor shopaholic.” It’s so hard to stop or cut back on investing when you have seen how awesome it can be, even if that’s the best thing to do for a short time. Do we need to start an Investors Anonymous group? 😬
I’m so glad the video gave you some comfort, and I’m betting that getting your EF built back up will be a huge comfort as well.
Katie, I am now watching your second half of the video. Oh, I would love to talk, and give you "rich uncle" advice, and share my personal situation that I don't feel comfortable sharing in a YT comment. So if you can ever look at the other way, and want to share how to do a video conference, let me know.
In the mean time. I understand your feelings. Like you , I did start investing in my 20s. But I did stop making new investments in my 50s. And I think you know where we are. My #1 comment to you, is take a deep breath. You ARE doing great. And there is NO one answer or way to live your life. Yes, I think reducing debt earlier is a very good and smart way to go. But completely sacrificing and not enjoying life could have its own problems. Also, will you be OK if in your 60s you have a portfolio MUCH bigger than your peers? Remember the majority of Americans retire living mostly on Social Security. (Which is just ONE reason why it wont go away. It might change, but not go away).
You and Marc, need to discuss your dreams and make sure you are on the same page. I think you are, but if he is not as focused on investing now, and wants to spend more, discuss what you can do. Again, let me know if I can help, or you want to discuss more one on one.
I love that you always bring up enjoying life! We definitely want to do that. I think part of the reason I want to speed up debt payoff is so that we get to the place there we can really enjoy life faster. However, I know we really are doing well with the debt payoff. I’m glad you pushed me to pay off fedloan 5 this year. I think we’re going to make that happen!
I try to get Marc’s input with money more, but it’s hard because he’s just so laid back and says “whatever you want to do.” I need to get him fired up about something 😂
Love the thumbnail ❤❤❤
Haha thank you!! It was different for me 😊
I'm with you regarding paying down debt vs investing as well. I've decreased the amount I invest in my overall Brokerage account and it definitely has me in my feelings lol. You are not alone. Investing is a big thing for me as I'm playing catch up in my mind.
Ahh it’s so hard to do everything, isn’t it? We used to invest in a brokerage fund as well, and we’ve already cut that out.
I’m so hesitant to cut back on Marc’s 403b investing, but I’m not sure if we should just suck it up and do it.
@KatieoftheHouse I max out my 401k. I'm debating on the IRA currently. I feel like those are invested dollars we can't get back. I think I'll pause the Brokerage investing to do the IRA. I'm hoping to have my SL paid off by end of next year.
I have the same struggles as you! I go back and forth on debt payoff or invest/save at least 10 times a month! We have 1 more debt to payoff (aside from our mortgage) so we are set on paying it off in the next few months and then we will max out retirement contributions afterwards.
I’m glad I’m not the only one who goes back and forth sometimes. It makes me feel a little crazy 😂
Huge congrats to you on your debt payoff progress! That’s so exciting that you are almost done!
hi Katie, im def getting dejavu from this video. We (longtime viewers) already know u can stop investing so aggressively and put more towards debt to get it paid off sooner and be absolutely fine! i think u should reduce the retirement and work on your E fund goal and then work on paying more towards debt pay off. At least having the e fund bulked up will give u some peace of mind regarding if something happening and not needing to dive into investments.
I know I’m so indecisive
😭 a lot of people had said to prioritize the WF first, and I was surprised, but I do think that will
make me feel a lot better if we can build it up to three months.
Hi Katie, I’m going to throw out an alternate to what many are suggesting. My suggestion is to continue as you are until fed loan 5 is gone and you have gotten rid of 6 figure debt. At that point do your calculations as I’m sure you will for when you would knock out the last $99,999. My guess is you will be soooo motivated to get it gone that the loss of 1 1/2 years of investment cutback will be so short you won’t have time to worry. I see a 2026 Christmas as a debt free Christmas.
Thank you, Debra!! I do think you are right about that 2026 goal! I have been running numbers since I posted this, and I think I’ve come up with a plan I’m comfortable with. I’ll share soon, but I do think we can be done with the debt in 2026 🎉
hey Katie! the back and forth between investing and paying off debt is so relatable. i have that same conversation with myself on a regular basis.
i’ve had covid these past two weeks, so i sadly couldn’t focus on transfers this week. i did get a raise when i came back to work, so i’m excited for the opportunity to save and invest more money! :)
I hope you are feeling better now 😭
Huge congrats on your raise!! It’s hard to balance investing and debt payoff, but getting a raise certainly will make it a bit easier 🎉
Good self talks !!! Boy Katie you and I are so similar ! We never stopped cut Mr Bills retirement investments the whole time we were in debt ! It’s the one thing we really couldn’t do that Dave recommended … 1000 dollar EF done no problem ! Stop retirement WHATtttttttt ! Katie get the debt gone … 1 to 2 years ! You’re going to do it ! Snowball it ! It’s going to jump sooooo fast once you get fed loan 5 gone !!!! Glenda
Thank you so much, Glenda! I’m glad you see yourself in me a little because you seem so wise with your finances, and I know you are in a good place now. It’s so hard to back off on retirement. I know we’ll be ok if we do as long as it’s temporary, but it’s still scary,
Happy Thursday!! Always go with ur gut feeling on what u want to do! Great idea!! 💗💗
Thanks, Izzy! I always tell my boys that, too, and I say if the decision is right, you will feel at peace with it, so I’m trying to find that peace to know what’s right 🧡
Personally I wouldn’t guess or make other peoples’ guesses my game plan. I’d run the numbers on a debt payoff calculator and I’d run the numbers on an investment calculator for what you’re currently investing and the lower percentage you’re thinking of switching to. Once you have all the factual numbers, you’ll be able to make a plan for what you want to do. Also, if your emergency fund is lacking, that should get a boost too and be part of the equation for where extra money should/could be going. Sometimes having the actual numbers can help remove some of the emotion out of trying to decide where to send funds because you’ll be able to see the whole picture for what the future could hold and different possibilities to get where you want to be.
Yes! You are absolutely right. I do need to run all of the numbers because then I won’t have any doubt and I’ll just KNOW what the best decision is. Thank you 😀
@@KatieoftheHouse money also isn’t black and white, you could put any income you earn towards the emergency fund on top of the $500, or whatever your chosen amount is, and additional income your husband makes towards the debt. It doesn’t have to be an all or nothing approach. I’d definitely run the numbers first though to at least see what the starting point is for any plans you want to make.
Thank you for the shout out!! I am so excited for you to stomp down that next fed loan! It is scary not to invest to the max, but I bet it will feel amazing to have that first month without any debt payments! 🎉😊
Thank you!! I really cannot wait to be debt free. I know it’s going to feel so good when we get there. I am definitely very nervous about reducing investments though.
OMG, I love that thumbnail. Wow, yay, that is an awesome Fed Loan payment. I know you are going to make it. I love the conversation you are having with yourself with us. You demonstrate in this video that each situation is very different and even that people that are doing amazing (like you and your family) there is a constant struggle knowing if you are doing the right thing.
Your comments always make my day, Dee! Thank you. I know that I likely will not feel 100% at peace no matter what I do because I’ll always feel like I could do better with whatever is on the back burner. I just need to figure out some numbers and decide what I’ll make me feel the most peace right now.
Have you put everything into a debt payoff calculator? Try that and see what’s the absolute fastest you can pay off the debt! That might push you over the edge to finally do it.
You’d would think I would have, but I haven’t! Not I’m about to 😀😉
You are doing great, but I would prioritize the EF😊 before investing so much.
I think that’s a good call, too. Not having a solid emergency fund scares the daylight out of me.
You will be really happy that you continued to invest consistently. You could cut back a little. Mark may want to take some time off of work. Enjoy your thirties and forties as much as possible.
I definitely have never regretted investing. That’s for sure!
Thank you 😀
Definitely hold off investing and pay off that debt!! You’re doing great!
Thank you! 😀
Hi Katie, I would contribute the amount to get the employer match and stamp out all the debt. Then go up to 15% and get the house paid off. Then you can invest in other things as well. You are doing great! I am glad you are seeing to lower your retirement contribution and paying more debt. It is so much easier to pay off debt, and with no house payment it is awesome! You can do so much more to enjoy life. Just hustle for a few years, and to quote Dave Ramsey, "Live like no one, and give like no one!" You are doing a great job! Your husband must be so proud of you!
That honestly sounds so wonderful, Ellen! I think we will be able to get there pretty quickly (at least with non-mortgage debt). I can feel the light at the end of the tunnel getting closer and closer!
I think if you take a more middle of the road approach you would feel better. Putting into Marc’s 403b is tax-favored, so it’s probably best to continue to invest in his 403b. But I would also talk with Marc more about early retirement. He works so hard, and I don’t want you to miss out on special times with your children, especially as they become teens and into their 20s. Also, if you want to keep investing, you two are in a great place to invest in the future for your kids through 529s or other accounts. That would set them up for success into adulthood
Thank you, Brooke! All good points! I definitely don’t think we’ll be in a bad place if we stick to the middle of the road and keep doing what we’re doing. I’ve been running some numbers since I made this video to try and figure out what to do, and I actually think we can get out of debt much quicker than I originally thought if we keep doing what we’ve been doing.
If you back down your 403B contribution, you have to be absolutely firm that every cent over what the "usual" paycheck would be goes straight to debt. No waiting until the end of the month, or using that extra income for this or that just this one time or you will get used to having it and that is dangerous. I do this anytime I get a raise as well, keep living on the old salary and sweep every cent over it from a new salary to savings.
Very good point!! I don’t want to add any lifestyle inflation.
I am going down to 2% on my 403b Roth for the rest of the year so that I have money to pay off rental maintenance expenses. I have already put 9k in the ROTH this year and I am at a 49% savings rate at this point in the year.
It sounds like you are in a good place to cut back a little bit to get your maintenance expenses paid 😄
We went down to 1% because it was matched twice. when we paid off all the debt we just went to the full match so we could save an emergency fund and now we are maxing out!
ahh that’s so amazing! I’m so glad you were able to get to the other side of debt payoff and are now maxing out your investments! That’s definitely our goal! 🎉
Relax. You are doing great! Stay consistent take your time and you will win. Continue building your savings and investments along the way. Your savings will cover you because there will be some bumps in the road. Like you stated keep investing because the time in market matters. I think you shouldn’t worry and stay consistent with your habits because over time it will pay off. Doing anything too fast like rushing to pay off the debt is only a quick dopamine fix. Win this the easy way don’t work to hard!
Oooh that’s a different perspective, but I do like it! You’re absolutely right that this is going to take time either way. I am still torn on what I want to do. I really hate the debt and want it gone, but I know it won’t happen overnight. I still need to run some numbers and compare. Maybe it wouldn’t make a huge difference in the timeline to debt freedom, in which case, I’ll keep going as I have been. If it does…I definitely have some things to think about. Thank you so much for this comment and offering a different perspective!
I definitely think slowing investing to just the match might be a great option and focus on the Debt Payoff and your Emergency fund. It is a difficult decision! We are trying to balance our investing, saving, and then specifically saving for our kids 529s, plus we have 2 teens on their way to driving age (so more cars). I'd love a video of you figuring out your Emergency Savings goal, if you haven't already done that? Also, I enjoy watching when couples budget together. Would your husband ever join you for a video? I'd love to hear his perspective! I try to balance with my husband since I love this stuff.
It’s so hard to balance everything!! It sounds like you guys are trying to do a lot of the same things that we are. My oldest is 13, so I’m starting to think about driving. That’s another reason I want to pay off debt soon so we can start saving more for him! I think I will share more about our EF soon! I did a video talking about how much we needed for our EF before, that that was probably over a year ago now, and things have changed so much.
I don’t know if Marc would want to do a budgeting video with me, but he did say he’d film a Q&A with me, so maybe we can do that soon 😄
@@KatieoftheHouse My oldest is 15 (My other one is 13) and we are in the thick of learning to drive! Talk about stressful! That would be awesome if you could get Marc to do a Q&A! Love your videos!
@@MomOf2Boys19 ooh good like with driving! I don’t look forward to those days 🤣
And thank you!! I’ll see if we can make a Q&A work before the year is over 🧡
I would cut investing down to the match. It would be really hard for me to cut off 100% especially w/ giving up free $$ through the match. Y’all have set yourselves up for success. Awesome transfers😊 As I’m writing this I’m waiting @ the dentist for a abscess🤦♀️ so I’m not making any transfers until I see bill😂
Oh no! I hope your appointment goes well. That sounds painful 😭
Thanks for the advice, Cat! It would definitely bother me WAY too much to not get the match, so no matter what, well at least do the 2% to get the match.
Haven’t watched yet but the thumbnail alone made me laugh 😂 too relatable
🤣I’m glad! This is my constant battle…always going back and forth between prioritizing investing and debt. I wish I’d make up my mind and be content 🙄
Hi again, I am back in MA,. We sold this house, (crossing my fingers), and will be moving FT to MD in Mid October. Hopefully in the near future I will sell the other MD home too. And by November this craziness will be over Just came back from California (saw my sister and PINK.) Next week off to Aruba. (I told you my life is crazy right now). But come November/December things should settle down for me. I will tell you selling, packing and moving after living in the same house for over 40+ years has been an experience.
As far as you guys, not much new to comment, but keep up as you are doing. Again I do hope you will plan for sometime in the future for you to enjoy yourself, be it with the kids, or just with Marc. Maybe next week I will be writing to you in Aruba.
Jon
Sounds like you are doing well!! Busy but all good things! I hope you have fun in Aruba! And PINK?! That sounds like so much fun 😃
Absolutely I would cut it back. I should be more scared than you...that's for sure. 😂😂😂 You are in a great position. You will have more investing power to get aggressive in the future when your debt is paid off.
Thank you, Allison! For what it’s worth, I think you are doing an awesome job! I think we all get a little scared when we think about having enough saved for retirement 😂
This is just my thoughts ❤ look how much money you lose each month in interest you have to pay on the debt. If you get the debt paid off you have so much more for investments, or even be able to help
With your boys school when it’s college time for them. Don’t take anything I say personally because I’m just giving my thoughts, have a wonderful day
That’s so true!! We’ll have so much more if we pay off the debt, and we’ll be able to save more for the kids. And don’t worry, I know you are just giving your opinion, and I did ask. I appreciate it so much ❤️❤️
If I were you, I'd give myself a firm timeliness to pause the retirement investing. Say 6 mo ths to a year, no more than a year. I'd put everything into your debts plus your normal payments and then start investing after that timeliness regardless of where you are in your debt payoff journey. It's very easy to stop investing, remember the magic of daily compounding interest. Do what you feel is right, just place hard deadlines. Good luck!
I like that idea of having a firm timeline!! I think that would make me feel better so it’s not just “until the debt is gone.”
Thank you! 😊
@@KatieoftheHouse Thank you for reading timelines and not the autocorrected timeliness. Lol
@@lisawilliams5 I honestly didn’t even notice 😂 I make a lot of typos myself though, so I think my brain just ignores them 😉
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Hi, Shawna 💕
I say cut everything and pay off the debt ASAP. It’s a heavy chain and wears you down. We cut everything and paid off 100K as fast as we could and now we can invest whatever we want. It’s a brief pause. No big deal.
Thank you for saying that. I always love to hear from people who have been through and have made it to the other side. You’re so right that it’s a short term sacrifice, and I think it will be so worth it. It really does weigh me down.
I would normally say just invest up to match but 2% match would mean only 4% of his income to that is dollar cost averaging into the market. I would do whatever nets 7-10% of income into the 401k.
So you’re saying that because his match is pretty low, right?
@@KatieoftheHouse yes, his match is lower than typical. My employer is extremely generous but no longer provides pension benefits but when they did offer (only a few years when I started) they matched 5% to our 5%. (Now they also give us an additional 4% no matter if you contribute to make up for no pension). Just some things to think consider…
Throw everything at the debt. 😊 Rip that bandaid off!
🙌🏼 I’ve been running numbers today, and I think I’m seeing a path! Thank you!
It's always a struggle of where your money should go. Our perspective is to never leave money on the table, so if Mark gets match from his employer we would put in the minimum amount to get the match and no more. Then we would focus on building up an emergency fund just enough to cover a major incident happening that would require you to use credit cards to fund, like a furnace going or needing a new roof. Once you have enough to cover an incident like that. Once that is at that level, $10k, $15k, whatever the amount you both feel is necessary, then we would put all the rest against the highest % debt item. Once that debt is paid off, your family will immediately get a raise of whatever the % is that you are paying on that debt. Then you can focus to build up that Emergency fund more and started piling in on investments. Obviously, this is all personal and you and your family need to do what you think is right for you. This is how we started our fire journey to building wealth and it has worked.
Thank you so much for taking the time to say this. I think having 10-15K in our EF would make me feel much better. We only have a little over one month of expenses saved now. It could also cover our deductibles if need be, but having only one income makes me feel a little nervous, and I’d like to have at least 3 months saved. I’m not sure if I should work on this slowly along with debt payoff, do it now, or wait til the debt is paid 😅 I think it’s interesting that you focused on a solid EF before paying off debt! That usually seems to be the opposite of what most people say, but I see the value in that because it being neg a so much peace of mind.
@@KatieoftheHouse Our Emergency Fund looks way different now as we built it up from $10k to 6 months of expenses (in case we are both out of work). The $10k would cover most things that would come up so we wouldn’t have to use a credit card. That’s where most people get hit hard because they have no other choice since they might only have 1k or so in their Emergency Fund. And CC int is 22%+ so you continue to lose.
@@OurRetireEarlyJourney right! I never understood the 1K EF thing. Every time we’ve had to use our EF, it has been for something that costs over 1K.
I would cut the investing for 2 years
Thank you for commenting 😊 I do think this is the wise choice.
Remember financial calculators are not a guarantee of the future. I would keep investing. If you can pay of the debt in 4 years and be debt free its worth it to keep investing. If you were not serious about the debt I would say to pause and pay it down but you seem very serious. Keep the Faith.
Thank you! I’m glad that you can tell that I am serious about it. I do think we’ll have it all paid within 4 years, honestly, hopefully sooner! That’s one reason I’m hesitant to pull back on investing because I know that we’ll get there with the debt payoff. We are making awesome progress. I just get impatient sometimes and want it gone YESTERDAY 😂
@@KatieoftheHouse I get it. I paid my house off early. During the process no matter how much I paid it didn't seem like it was going down fast enough (for me.) But now that I am here I am glad I kept investing as well. You will get there. Keep up the good work.
Investing is hard for me to fully understand. For me, I would rather work on paying off my mortgage/bills first than invest that same money. Because your money has to sit for a long time to grow, paying off your bills and then investing makes more sense to me. Hey, what do I know?
No worries! I wish finance was talked about in school more often so people would be taught more about investing earlier in life. Investing is a very powerful tool for wealth growth. That being said, debt interest will eat away at wealth growth as well, so you are absolutely right that paying debt is so important ☺️ I’m going to shift our priorities a bit and make sure our debt is paid off faster. Thanks so much for watching and commenting ❤️
I would not cut back. You are paying your debt really fast anyway.
That’s definitely one of my hesitations. We are already making good progress. I think I need to do some calculations and see how big of a difference cutting back could make. If it’s not significant, it might not be worth it
Personally, I don't think prioritizing debt payoff over savings and investing is a good idea. If you are going to reduce your investments, put it towards the emergency fund to get that built up to what you need. IMO, emergency funds should always be priority over debt. You don't know what is going to happen and having that cushion is very important.
I also wouldn't reduce investment payments to pay off debt. Sure, if you don't add anymore to retirement you say you'll be fine, but what if you want to retire early? What if something happens and you are forced to retire early?
You are already putting so much extra to debt payoff, I think keeping a balanced approach to debt and investments and savings is important.
Have you calculated what you actually need in retirement? I may have missed that video (or maybe you haven't shared, and you don't have to). But if you haven't actually calculated your retirement needs, I would do that before reducing investments. Maybe you are over investing and can cut back, but maybe you'll find you aren't investing enough.
Thank you for the thoughtful comment ☺️These are all very good points! I really have so much to think about. I have not crunched the numbers on retirement yet. I feel like that’s hard to do since we are so far off from it right now. That does support your point that that we really have no idea how much we will need. I really don’t want to cut back on investing at all, and I have always tried to have a balanced approach. Except with savings… that really isn’t where it should be. I really am not sure what I’ll do yet, but I know a lot of math and calculators will be involved! 😅
If you are thinking long-term, look at the projected impact on your net worth. This probably suggests investing over debt reduction (depending on interest rates/taxes/etc). I get antsy every so often and want to pay off the mortgage faster and my wife has to remind me that I had decided it was better to keep it and that I need to stick with our decision. I guess you need a wife to tell you to stick with your plan.
That’s great advice!! Ive been plugging in numbers to debt payoff and investment calculators like crazy, and I’ll definitely consider net worth as well. Thank you 😊
Amazing thumbnail! Forgot to comment 🤦🏼♀️
I wouldn't pause the investment completely, but if you are doubting I would do calculations to see what you would actually get out after taxes just to see if it's worth it. Cause I remember you saying that you didn't really see a difference when you lowered the contributions last time.
Our transfers until Thursday were €4.28 change to vacation and €15.23 cashback to the Window Replacement Fund.
Thanks for sharing your transfers, Sara!
And yes, you are remembering correctly that I didn’t notice much difference when I cut back last time, but I was only cutting back 2% of what we were putting in, so I’m thinking we might see more of a difference if we cut back more. I have been doing lots of calculations though, and I’m very optimistic that we can be out of debt sooner than I originally thought (2028), so I’m excited to share all of that soon 😄💕
You guys are doing great! Yes to a bigger paycheck!
I’m on the same struggle. I want to invest more but I want to pay my car off.
Always use the match. Always.
Did you see a big difference with the adjustments earlier in the year? Also the tax advantage?
I’m with you, going back and forth but I see both sides. I would reduce the investing a bit and see how you feel.
I too am wishy washy! lol!
I didn’t see a huge difference earlier this year, which is why I went back up. BUT I also didn’t go down to 2%. The tax advantages are nice too 😫 decisions, decisions. Why can’t there just be enough money for all of our goals, Ang?!