After doing undergrad and grad school, I am now $200K in debt. These are mostly federal loans and I have been doing IBR for the past three years since graduating school. Now I'm ready to get serious about my money situation but I'm not sure if my plan makes sense.
A few factors to consider: * I recently moved across the country (for quality of life reasons), which was fairly expensive, and am now in a small amount of credit card debt (~3,000). My monthly expenses have gone down with the move, so I think this will even out eventually. * Salary: 63,000 (with bonuses that could raise me to 70,000) * Rent: 1200 (already have a roommate) * I already budget using YNAB, which I'm slowly getting better about checking before making purchases * Employer has a 3% match simple IRA that I'm gonna start contributing to next month. I've got about $16,000 in a 401(K) from last job that I'm going to invest. * I spent $3,000 on my cat last year due to unexpected vet costs, this was the moving money that I had saved up * Not married, no kids
Current plan: * $1,225/month towards student loans (with avalanche method). To make this really work, I need to get this up to $2,000 but struggling with that. * Budget using $63,000 and throw any extra bonus money towards loans * Pay a couple hundred towards credit cards a month (plus pay off any new purchases in full)
Am I missing anything or is this just gonna suck for a while? There's definitely part of me that says screw it, I can't be hermit for 15 years and I just should invested as much as possible to save up for the IBR tax bomb.
Submitted July 21, 2018 at 12:31AM by andiamoavecmoi https://ift.tt/2Lta3gE
