Help settle an argument please! We're having a "discussion" about money issues. It's turning a little heated, so we'd like to hear some opinions on this matter. Ours names are Mike and Allison.

OUR STATUS: We've been together for over 4 years now. We've been living together for a year and a half, and we just got married Saturday! Haha, we're happy about this, we love each other very much. When it comes to finances, we differ. We currently rent a unit, we have no kids, 1 little dog, 2 cars but only 1 car payment. We make the usual monthly payments that others make (all-inclusive rent, food, gas, clothes, etc) and have no problems at all keeping up with our monthly payments.

We have debt. Mostly college loans and the one car loan, but the main focus currently is the 10,000 dollars of credit card debt we have. Mike (who had a Bachelors degree) went back to college to get his post-Bacceloriate degree in education. He just got accepted and will be a high school math teacher starting in August. But in order to pay the 10,000 dollar college bill, we put it on our credit cards.

Mike has a Corvette. He wants to sell it for 5,000 and put it into all of that money into the credit card bill. Allison has a 401K that's coming in from a previous job. She wants to take that (around 5000) to also take out the credit card debt. Between those 2 things, we should have that card taken out.

We currently work at 2 dead-end jobs, K-mart and Price Chopper (a supermarket), where we make between 300-500 a week between the 2 of us. We will be missing out on 3 full weeks of pay coming up because of circumstances (honeymoon & college).



RECENTLY: We just bought an LCD TV. The purchase was mostly Mike's idea, he also was able to scrounge up $500 extra dollars on his own accord (not working paychecks), and Allison was willing to take out the additional $300 of the joint account needed to buy the TV.

Mike also sold his road bike for $500, and spent $250 of that money on a new Blu-Ray player, and put the rest of the money back into our joint account.


MIKE THINKS: Mike also has an atv. It's 5 years old, an item he purchased brand new before Allison existed, and he doesn't get to ride it as much as he would like. He didn't have to sell it, but is willing to sell it for $1500. THE PROBLEM: He wants to take 250 out of that amount and put it towards surround sound for his new TV and Blu-Ray. His position is that he doesn't need to sell the atv, but is willing to since it's just sitting around, and there are perspective buyers. Since that's extra money he's willing to make, he should be allowed to take $250 out on a surround sound, and put the other $1250 into the joint account. Mike just wants his surround sound. He doesn't even have to sell the atv if he doesn't want to, so why would it matter if he takes $250 out of the total amount he sells it for and gives the rest to the joint account?


ALLISON THINKS: The entire amount that Mike makes from the atv should be put into the joint account because we will be missing out on 3 weeks worth of paychecks, and any money that we get to work on paying down some of the debt would be better than to buy something we don't necessarily need right now. The 401K money is coming, but who knows when, and how much! The Corvette will be sold, but who knows how much for! We have many loans to pay back.




THOUGHTS?

And it could be thoughts on anything. Such as this particular discussion, or about how we handle arguments in general.

I'm siding with Mike on this one, he makes a valid argument. He is selling something of his, so proceeds from that can be spent how he wishes. He is still putting money in the joint account, just subtracting $250.00.

I think the two of you should be spending your money wisely. Buying a jazzy new television set isn't good when you have bills to pay--especially rent. You don't want to be homeless.

Also, before you borrow from your 401k check out the penalities and fees.

Right now the main money issue is Mike debt from college and maybe the two of you should see a fianical advisor. They might have one for you to see at your bank because the both of you are young and need to work and/or maybe change your spending habits.

Also, the two of you need to breakdown you monthly budget. Also, go over the things the two of you could have went without. What did you buy last month that was unnecessary? Start there. Hopefully someoneelse will come along to help.

I'm just going to say that I have to agree with Allison on this one. College bills and 3 weeks worth of living expenses due to lost wages trump a new TV and Blu-Ray. And I would advise Mike and Allison to pay off all of their debts, college, car, whatever, as quickly as possible, by whatever means necessary and available and cut their living expenses down to the bare bones before purchasing any luxury items such as new TVs, etc. Remember, it always boils down to needs vs. wants and needs have to come first. One 'want' is almost always acquired at the expense of another.

I must ask "before the two of you got hitch this Saturday did the two of you ever go over your fiances?" Also, did the two of you live together before you get married?

Btw, Congratulations!

Well, they just got married... hahaha! Sorry, we all dance the same dance with men and their reasoning's for either paying old debt or buying new toys. The economy is in recession, your jobs are not paying much, your sitting on potential money coming your way and what you propose does make rational and logical sense.

Still, it's his ATV! His money and he isn't taking the money and running like some people would. I sold my Jeep 4 x 4 that I bought long before we where married towards bills... sacrifice. At the same time though, you may have to compromise to keep everyone happy - I guess renting movies would be much more exciting and comfortable then going to the theater for $50 a trip. Good luck with the dispute.

I have never seen a case presented so well on this forum.Kudos to both of you.If you continue to work out issues in this way,you should have a very long and fruitful marriage.

I say wait on the surround sound until after you have figured out how you are going to make ends meet during the three weeks with no income.The first paycheck should be for the surround sound.

A car could break down,an emergency could happen.
The surround sound can wait but a broken vehicle or some other emergency can not.

I am of the mindset that it is better to err on the side of caution.

First, a guess: Are you Allison?
(no, you don't have to answer).

I can't say basic finances. However, in the difference of opinions, I'll say that (I believe) neither is completely correct.

Just like everyone else said, you shouldn't be buying all of this expensive home entertainment stuff if you have bills to pay.
However, if He INSISTS on buying his surround sound, this is what I suggest:
Sell the ATV, use the money to pay the bills while you have no income. If, through the car and 401K, you can pay off all of your debt, and you are SURE, then, and only then, do I suggest letting him spend the money on the SS. Then put the rest towards your debt.

So, to sum up, it goes:
1: Bills for three months with no income
2: Surround sound if money is NOT NECESSARY
3: Debt, as much as possible.

Just my opinion, others may disagree. However, some guys are deadset on getting their electronics hooked up, and may resent you if they can't have it.

Actually, I'm the guy. I posted here because we couldn't reach a compromise. I wrote the original statement, but allowed her to adjust the wording anyway she wanted because I didn't really think people would side with her. It was my idea to sell it, so I figured I should be allowed to skim a couple hundred off the top, and giving the rest of the money towards bills would be a bonus.

But the majority of people didn't see it that way. I lost this one.

So I'm not selling it anymore.

So what are you accomplishing by not selling it? Then not only do you have to wait longer for surround sound but you also don't get to chip away at your debt. At least if you sell it and don't get to take any for surround sound you still get to chip away at your debt. Right?

Lol, I just guessed, but I read something wrong when I guessed.

Actually only one person sided with her (post4). One person sided with you (post 2) and the rest (myself included) think you should compromise (post 3, 6, 7, 8).

I like the fact that you both worked together to post this.
I DON'T like the fact that you are putting your personal entertainment before your bills. Granted, you can still make improvements while paying for previous ones, and there is nothing wrong with that.
And, you DID own the atv before Allison. But, now that you are married, usually, all of YOUR belongings and HER belongings, legally, are BOTH OF YOURS now, and you'll have to accept that.

I do believe that you should sell the atv. It is doing nothing but taking up space at the moment, and you could really use the money during the three months with no income. You can't use the corvette money or the 401K money, because that has already been pre-determined where it goes.

I think it's petty that, because everyone here didn't agree with you, you decide to hold onto an old, unused reminder of your past instead of letting go for both of your future.

At least if you sell it and don't get to take any for surround sound you still get to chip away at your debt. right?

True, and then, you will have some left over Corvette money to do with what you will!

Long time, no see EuRa, I see you have been doing great, and that's good.

Sell the toys, put the money in the bank, don't touch the 401k.

When you get back from the honeymoon, look around at what's left, and start cutting into the debt.

Pay your debts, and its more fulfilling, and less stress, when you get new toys to play with.

Be realistic, together you have enough to manage wisely, but not enough to splurge on a whim.

You can get whatever you want, when you plan for it, but you can't drink champaign, on a beer budget.

Looks like you both are fairly close to a good solution, but just get Allison to agree to the blue ray sound system at some point in the near future, and don't let her ever touch the 401k, till she is old and retired, because the taxes, and penalties eat it up.

Congrats on the wedding! :);)