Too many financial decisions at once can create logjam
Dear Pete: I recently graduated from college and have been working for three months. My net pay is $3,000 per month, and my monthly bills are only $500. So I have around $2,500 per month to plan for the future. I have a pension with the state, so 9 percent of my income is invested for retirement right now, with a match of 14 percent. I travel each week for work, so I just live at my childhood home on the weekends to save money on rent. I have a girlfriend of 10 years begging me for a ring soon, along with $8,000 in car debt, $34,000 in student loan debt and the longing to buy some land and build a house once I do pop the question. How much should I spend on a ring, and should I throw my money at debt first, before I even think about getting the ring? Also, my girlfriend has been a nurse for two years and brings home around $2,800 per month. We would make enough income to afford a home together, but maybe we should rent for a year or two first?