Recently I posted a portfolio review thread and I got a lot of valuable feedback. Learning a lot from this community and figured it'd be wise to post about this financial decision as well since it's a big one.
Quick description of our situation:
- 32 y/o (as is wife)
- expecting first child later this year
- live in HCOL location (NJ)
- main hobby is golf; good at it by most standards, grew up playing with my dad, still the thing I enjoy to do most with family/friends
- strongly desire ability to belong to a club that I can access for golf whenever I want, pool, tennis, meals with wife and future kid(s)
- joint income ~ $400k / year, with wife who recently started working earning ~ $60k-$70k of that)
- my job is fairly stable
- debt of ~ $490k on 30y fixed mortgage, applying $500 extra/month towards principal
- maxed out all retirement vehicles + HSA and contributed ~ $70k "extra" to taxable fund this year
- we currently spend ~ $70k-$80k/year incl. all home related payments
- two paid off cars
- club we'd join for variety of reasons would cost ~ $9k/year for first two years with ability to bail at any time, then ~ $18k-$20k/year beyond with a $17k initiation to full membership at age 38 if we stayed on
- joining now would get me ~ 40% off eventual initiation (which is normally $30k) if we did decide to stay/convert as full members at age 38
I would expect to use the club quite a bit (at least 2-3 mornings during the week, most weekends, and pool/tennis/meals with wife and occasionally friends). Re: our house, we expect to live here for 7-10 years as it's big enough for us & two young kids (~ 1700 sq. ft.) but we'd probably want a bit more space down the road.
I know being a BH doesn't mean pinching pennies and living just to save, but next to the house this would be my biggest financial commitment ever and I'd love any input before jumping in (especially with a kid on the way).
Would appreciate any insight and happy to clarify anything if needed. Thank you!