What is your financial advice for a soon to be married 24 year old couple?

My fiance and I are getting married 10/31/2008. We rent an apartment. We have a car loan, a personal loan, and I have a credit card. We owe about $25,000 in debt because of the loans and credit card. The interest on each is over 25% APR. We don't have any children yet. We have about $40 in savings. We have a keep the change account. We have $1,000 in a checking account. Which we still need to pay some bills out of that money. We make about $2,700 a month. We've paid all our bills on time for the last year. We don't have a 401K, IRA, CD, mutual funds, or stock. We would like to retire around 65. Both our credit scores are under 620. What can we do to improve our financial situation?What is your financial advice for a soon to be married 24 year old couple?
Work hard and save for a rainy day..What is your financial advice for a soon to be married 24 year old couple?
Combined put no less then 10% of your income in a retirement fund. More if possible, no less. Put 5% in a college fund, I learned that too late and will be paying interest loans off for the kids for 10 year on my share and they on theirs.





Being as both these funds can be deducted as tax deffered it will not cost as much as the math shows at 15%. Learn to do with out that little now or a lot later.



you need to learn to stop useing credit cards pay off car and try to be cheap skates as much as possible you will be much happier later hold off on a house till you can afford to pay at least 6 months of house payments with your savings just incase your job ever goes south
Get rid of them loans as a first priority and until you do, make sure you use contraception.
the other poster are correct.





However, here is a major problem with any goals that you have for saving and paying off debt.





You only earn 32,000 a year (if your figure was after taxes) or less then 40k a year before taxes.





You must focus on ways to increase your income. At 24 y/o, you need to think about additional education. Either college or trade school. Spend the next several years going back to school at night.





Spend the next several years living as cheaply as possible. Have your husband and you make a game out of it. Love isn't something that you have to buy.






You need a nest egg. Congratulations on your wedding too.





Before you get married, open a 401k with each of your employers. Put in a minimum amount of 3% each pay period. This is in case (Sorry) sometime in the future, you guys part ways. You wouldn't be able to make a claim on the others retirement.





Before or after you get married, open an IRA. I think the minimum deposit is $1,000 with most banks.





A 401k isn't enough to secure your future. You should each open an IRA.





Keep paying your bills on time and keep the credit card expenses to emergencies.





I wouldn't advise buying a house anytime soon even thought the prices are low. As it is, you barely have enough to save. A house also comes with additional expenses.





Shopping wise, wait on the clearance sales. Grocery-wise, buy the store brands and not the popular name brands (Most of the store brands are made by the same makers anyway). If you're having to eat out at a restaurant, find out what their larger dishes are and share. Keep the going out to a minimum once a month. Forget the fancy coffee. Take your coffee money and put it in a jar somewhere in case you need extra cash.





Go pick up a book about saving for the long term.
You absolutely positively HAVE to pay off the loans and CC's with the 25 % APR. Find the cheapest rent, ditch the car for one that runs but you can afford right now (Like 1500 or less). Write down all of your absolute expenses for the month like rent, electric and food and cut every other thing that is not a life's necessity OUT until the debt is paid off and you have at least 6 months of living expense money stowed away. That means no eating out, going to movies, buying clothes or impulse items at the store. At the grocery you shop the sales for the week and menu plan around them. Learn to extend food, eat rice and beans and buy things that are getting ready to be tossed. Do not take out any more credit, sign for any more loans. If you can, go get a second job (both of you) until you get the debt paid.





I KNOW that may sound ridiculous, but it isn't. You cannot possibly save for family and home much less retirement with that debt hanging over you. You two will feel like a million bucks when it is paid and you are free.





also - pack the lunch, write down every last cent that you spend and you and your husband sit down every week and review it to see how you did, how to improve and to make sure you two are on the same page.





Financial hardships are a big reason why people split. it is stressful and rough on love (esp. new marriage when there are already new stresses). Sit down with your guy, give yourselves a pep talk, write down your expenses and plan on paying it off and start immediately.





Good luck and congrats
The biggest thing is how you live, your saving/spending habits. You will need to establish good money habits. Make a budget and live by it. Live on less than you make.





Debt usually plays against you when you are trying to build wealth so that is the first thing to go. Dump as much money as you can towards the debt. If you are really serious about building wealth get rid of you car and buy a car you can afford. Cars don't appreciate in value but depreciate so they are a terrible thing to buy if you are trying to build wealth. If you can't pay for it you can't afford it therefore don't buy it.





You should check out daveramsey.com