Episode 10: Fritz

 

Meet Fritz

Age: 27

Salary: His $67k – Hers $100

Employment:  His Accounting – Hers Pharmacy

Savings and Investments: 

  • $167,000 Retirement
  • $30,000 Emergency fund

Debt: $0

Fritz’s main concerns, in his own words

Thanks to people like you speaking truth in my life, my wife (age 27) and I (age 29) are debt free, including a starter home (FMV ~ 150k), two cars, college educations, and a pet chinchilla (I’m kidding about the the chinchilla). With $160k in retirement, emergency fund of $30k, and a combined salary of $167k, we are walking towards buying our “dream/forever” home – where we will hope to raise a family over the next 30 or so years. In essence, we are trying to skip over the middle home. We both are employed in very stable industries.

I want to make a wise decision, balancing buying a house that we will be nice / big enough to fit our life for the next 20 – 30 years, but also not stretch things so that we put our family in unnecessary risk. When the baby train arrives, my wife will jump down to a .6 FTE and without considering future raises – that would put us at $110k take home. I know ideally 25% is the guideline you recommend, but with our situation do you think we would be unwise to go a little north of that?

 

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