conversation: User (ilxFauno): "Basically what I'm asking is what would YOU do in my situation?\n\nI've recently been honorably discharged from the Army. I moved to Denver and will be starting school for computer science. I already have a job downtown so I don't have to ever worry about paying for student parking. My wife and I live in a townhouse a bit north of work and school. \nI'll be using the Post 9/11 GI bill, so I'll be getting BAH. Sometime next year around Feb or Mar I will be getting disability from the VA. \n\nBut I'm also in debt. So here's what I'm working with, what would you guys spend and save? How would you budget? \n\nSalary: $1600-$1800 monthly\n\nGI bill BAH: $1790 Monthly\n\n(Next year, disability: around $1400 monthly. Not sure yet)\n\nEXPENSES:\n\nRent: $1100\n\nFood: $200\n\nCar insurance: $130\n\nCell: $130\n\nGas: $40-ish \n\nStudent loan: $120\n\nInternet:$120\n\nThat student loan is at $38K right now. \nI have to support myself, my wife, our 9 month old daughter and my cat. We're looking for a house to rent because they're cheaper by about $300 a month. And I will probably sell one of our two cars. I bank with USAA only, but have been thinking about opening another account with a local credit union. Okay guys, lets get some input.\n"
  Self: "Ok, to recap, totals are:\n\n - Income - $3600 up to $5000\n - Expenses - $1740, without any costs for car maintenance/replacement/loans, eating out, misc spending (baby supplies, school supplies, toiletries, etc), life/health insurance, or utilities\n\nThis leaves you with about $1900 a month leftover, which I suspect will be much closer to $1400 once the above are accounted for. Perhaps even lower and increasing when you get disability. \n\nDoes your wife not work? Assuming a stay at home mom here.\n\nI would do, in this order (assuming no other debts and no employer 401k matching):\n\n - Allocate the rest of the $1900 which is missing from the above\n - Save 3-6 months living expenses in cash, this can probably happen fairly quickly\n - Start paying off the student loan more aggressively\n\n&gt;I bank with USAA only, but have been thinking about opening another account with a local credit union.\n\nThis is anecdotal but I bank with USAA and love it. I have had overwhelmingly consistently good service with them and to me, this is worth any possible negatives (I don't really have any negatives, though). Why do you want to get a local credit union?\n"
  User (ilxFauno): "Health and life insurance through work and accounted for in salary. \n\nNo don't get me wrong, I believe USAA is the best bank anyone could ever hope for. I also have renters and car insurance through them. Sometimes I want something to happen just to call their customer support, they're so helpful.\n\nI wanted to open another account with something local as the closest USAA branch is an hour south of me. Just for convenience I guess, does that sound silly?"
  rayout (rayout): "Consider adding more life insurance. Life insurance through work typically doesn't offer much coverage - mine is less than $100,000. A recent study said that raising a child cost an average of $240K to adulthood. If you are the main breadwinner, you are going to want to have enough coverage to make sure your SO and child can make it if you pass away unexpectedly."
  User (ilxFauno): "You're right, that's something I haven't thought about. Thank you."
  