The premise: First job as a teacher, earning $50k/yr gross in high COL area. I will also be receiving a $1200 stipend and can work in the summer to add 3-5k.
11% of my salary is already being deducted for my state pension, but I am looking to also save in a Vanguard 403(b). However, I am not sure what % of my salary I should put in given that I still have loans to pay off. Realistically, I cannot afford to put much in, but I don't want to miss out on building my savings.
After all of my deductions (pension, taxes, union dues), I've conservatively calculated my takehome to be $2700/m. I think I am lowballing this and it should be more like $3000/m but I want to be safe.
Expenses (so far) per month:
Rent - $1250
Utilities - $100
Transit pass - $85
Student Loans - $1000 (4 private loans @ $200/m, $200/m for PSLF-eligible federal loans). 3 private loans are @ 8% while one is @ 11%
ROTH IRA - $50 (when I was a student, not sure how I will adjust this)
Groceries - $200-250
Eating out - $50
Personal items - $30
Clothing (need to build new professional wardrobe) - $50-75
Right now I am already in the red/breaking even, but I still have a four month's grace period on my loans to build up my emergency fund (I already have about $2000) and get a jump on that horrific 11% loan. I am not sure if it is worth it to refinance them. I am coming off of a year of not being employed (full-time student teaching) so my finances have been severely depleted. I know that the numbers are grim but I have a guaranteed 4-5% salary increase each year and I hope to move into the next salary lane ($1000/yr in tuition reimbursement...) in a few years as well. My loans suck but I knew what I was getting into and for my career (I teach in a niche high-needs field in a great Title I district) it was worth it.
tl;dr: 403(b) option in pensioned position but budget is already stretched to the limit. how much to save at this point, if at all?
Submitted August 16, 2018 at 08:37AM by alltheretirement https://ift.tt/2Pf8pys
