Early Retirement Extreme Forums

Hi,
I've been reading ERE for months now and agree with lots of the philosophy, but am not nearly as extreme.
My husband and I are expecting our first kid next Feb. and my goal is to tighten our budget so we're comfortable with me working only half time.
We are more frugal than everyone we know, but haven't taken any extreme measures that cause us to go outside our comfort zone - mostly due to husband's unwillingness to do so.
Biggest financial challenge is paying off around $130K in student loans. My husband graduated from law school in May 2008 and is still working at a "temporary" clerkship making $45K per year - not nearly enough for the $1000K per month minimum payments. It tortures me to sit by and watch the interest on those loans grow.
We put all our extra money towards the loans, live in an under 1000 sq. foot house with a $675/mo. mortgage, don't have cable or internet, rarely eat out/buy clothes, etc.
That's my story in brief, hope to get some good inspiration on this forum!
K

http://www.frugalveganmom.wordpress.com

Methinks, with a student loan that's 3 times the annual salary and which will never go away, you can't really afford to go half-time. If you're piling on interest, it means that you're currently living above your means. The problem is that student loan debt can't be discharged in a bankruptcy.

Another forum that you might find helpful is NoMoreDebt over on Delphi. http://forums.delphiforums.com/nomoredebt/messages There are a lot of folks over there that have dug themselves out of larger debts. I got a lot of great advice there when I was digging out from under my student loans ($50K).

So it seems at least for the present, we have paid a $130,000.00 "fee" to get a $45,000.00 job. (Most people think in the present). Your intention is of course to have that $45,000 job to morph into a $150,000 job "soon". Later increase to maybe $200,000.00.

Now I have to applaud you for having such foresight. Most people would have become pretty downtrodden by this point.

To many people, $130,000 is a lot of money and would even buy a really nice home. To these people, being saddled with such debt, while having a child, and living expenses, working as a lawyer, going about the day to day things, even salaried at $45,000 a year would be found untenable. They could neither see, nor wait for, "the come" if you will of one day being a highly paid and fully successful attorney.

I really don't know much about current student debt. In the 60's and 70's, I knew of people who took it out, and never bothered paying it back. Then the government was not so adamant about coming after you. Today, I am sure the US Government will "attach", "Garnish", and "withhold from taxes" and maybe even file suits to get it back. In the Bill Clinton days, some of the student debts were just forgiven and written off. Like we used to say when we were in Vietnam, "What are they gonna do, send me to Vietnam?" But I am sure today is different.

My only advice would be that once your earnings as a lawyer start upwards, keep your lifestyle cost low. If you get the $100,000 a year soon, keep living below your means for a while.

Don't let the bigger money cause you to spend it all as you make it. Once the debt is gone, then I would think of moving up a little, not before.

Best Wishes.

Hi "Mom",
Seems like you and your husband have different priorities (you: spend time with child; him: not give up some material comforts). You should clear that out together.
Suggestion: try to get a job where you can be paid while still being with your kid: maybe certain companies, telecommuting, starting your own day care.
Where there's a will, there's a way. Don't compromise on your priorities. You can have your cake and eat it.