Am I on the right track? ?

Question

Just looking for some outside advice. Someone looking in on my financial situation.

My wife and I were given a great opportunity. 

Our debt:
My car 16,000$ 
Her car is paid off. 
Her student loan approx 3,200$
Furniture 2,900$ 
No credit card debt. 
Planning for a child within next year. 
Savings 13,500$ approx saved within 9 months. 

Our savings track will still be going a the rate we are saving now approx 20,000$ in a year. 

Student loan would be paid in next two months. The furniture is 0% interest. 

We do not own a home however would love to purchase one once we get back home. 

My wife does not work and still going to school. 

I am in the military so my school is paid for and her school is cheap enough for us to pay out of pocket and then soon she will be able to use GI Bill avoiding students loans in all. 

Should I save for this baby we plan on having? 

Should I pay more to my car to clear this debt?

I have a retirement for myself that I am thinking of transferring to a Roth IRA, should I? 

We are 24 years old and I myself earn about 65,000 a year after tax deductions. This oppurtunty can be taken at any year as I am voluntary on an assignment. 

My original goal was to clear any debt ,regardless of what I have in savings at the end of this oppurtunity, so that I went home free of unneeded bills. 

We are also investing in furniture that we can pay off while here so that when we go home less we need to purchase. 

What would you suggest differently if anything. Thanks for your time in reading this.

Anonymous · Accepted Answer

It is almost always advisable to pay off debt before you save any money, as you can rarely accrue more interest on your savings than you do on your debt.  Please do keep a mimimum of 3 months income as emergency funds saved up though.  As for the 0% furntiure debt, a lot of these accounts are 0% until a certain day only and if there is ANY balance outstanding after that date, the interest charge for the full amount is charged to your account retroactively to the start date.  Not all of these accounts, but a large percentage of them.  Check the contract you signed or call the provider for details if you are unaware.  I've seen people get stung by these countless times.  A Roth IRA isn't ideal, but not bad if you don't have any other options.  Speak to a Financial Planner in person about that.  They need to know a lot more information to make the right choice for you, none of which you should share on yahoo.  

Your plan overall is solid.  You really can't go wrong either way though.  What's important is that you have dedicated your money to either debt reduction or savings.  One may be slightly better than the other, but either is a path to financial success.  Your financial stability is well above average for a 24 year old.  You should congratulate yourself.

Ursugardaddy · Answer

If you have to ask this question on yahoo answers then you do not have the right "Someone looking in on my financial situation".. Never ask personal financial questions via the internet because you will receive different responses plus you have to trust the person looking in on you financial situation

Take Care

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Am I on the right track? ?

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