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Savings Plans Change Again

November 30th, 2011 at 03:18 pm

So our savings plans are changing yet again. Over Thanksgiving, we found out my in-laws can't help with DH's student loans when they come due in January thanks to cash flow problems. This set off a flurry of activity which resulted in us finding out 1) that DH qualifies for the APLE loan forgiveness again this year and 2) DH can easily forbear his undergrad loans until August when his grad school loans are due. So now we are in no hurry to pay off his student loans. So here is the new plan:

- December 2011 - Finish car fund
- Jan - Aug 2012 - Use car fund to hold all additional savings. At some point, buy a car. Have our baby. I start applying to jobs. Financial flexibility will be key.
- August 2012 - Begin paying minimums on DH's grad school loans. In-laws pay their portion.
- Sept 2012 - June 2013 - I get a job then finish my PhD. Allocate any unused savings to either my $11k high interest student loans or a down payment on a house.
- After June 2013 - Pay off my high interest student loans. Raise retirement contributions to $10k/year. Pay minimums on my low interest student loans. All extra money goes toward expanding our down payment.

Our timeline will shift based on 1) when I get a job, 2) when I finish my PhD and then when my loans start, 3) whether we have to move for me to get a job, 4) everything being fine with our little one, 5) my need for a car, and 6) DH's job prospects wherever my job is. So I'm expecting that while we are hoarding money over the next 8 months, our plans will change a few times.

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