thewanderer said:
“However, when two reasonable people both disagree about which course of action is best, only one of them can be in accord with right reason.”
Actually, no. It may be that neither of them has the right course of action figured out. Here’s a summary of a major disagreement my husband and I had a week or two ago.
- I want to renovate the house we just bought, which is super pink with purple here and there. Some of the carpets are 20+ years old and the interior badly needs painting. It will probably cost $40k to do the whole renovation. I had agreed to the purchase on the understanding that we would renovate as soon as we had the money.
- My husband wants us to first save for college. We have three kids and we are unlikely to get any need-based aid. At $100k apiece, that’s $300k. We don’t have a dime saved for college yet. “Do you really want to have a nice kitchen and the kids not be able to go to college?” he asks. Good point.
- I told my husband that I am not willing to live in a pink house for the next 20 years. If we need to save for college first, I want us to sell the current house and buy a smaller one that’s not pink all over.
- My husband doesn’t want a smaller house or to move. He is happy with our house as it is.
- We finally sit down and do some math (which we should have done earlier). We discover that there are great disparities in the expenses incurred from year to year as the kids move through private school and then college. During the worst year, the one year when we have two kids in college and one in private school, we will need to spend $4.5k a month just on school expenses, which is horrifying and probably impossible to cash flow. In other years, our total education expenses will range between $2k and $3k. There’s also a good chance that the mortgage will be paid off by the time the youngest starts college, which would be a very good thing.
- Decided–We need to have college savings in order to smooth out our school expenses and manage the two-kids-in-college year.
- More math happens
- My husband suggests that if we need to save $10k a year for college starting this summer, and any savings in excess of that can be used for house renovations.
- We have a deal!!! Everybody is happy!!!
Notice what doesn’t happen here. Neither of us knuckles under. My husband sticks to his guns–he wants a large college savings, and he sticks to that. I meanwhile, also want college savings, but just as much, I don’t want to live in a glowing pink house, and I stick to that. We gather more information, explore alternate possibilities, and are eventually able to arrive at a reasonable, workable compromise. If my husband had given in to me, we could have wound up with a nice house and kids who couldn’t go to college without debt. If I had given in to my husband, I might wind up seething about horrible old carpet for the next 10-20 years.