Hi All,
I (22M) started my first full-time job in February and am looking for some guidance for how I should prioritize some financial goals.
My salary is $74,000, with my monthly take-home being around $4,300. Standard monthly expenses (Rent, utilities, insurance, food, etc.) total about $1,800, leaving about $2,500 net per month.
I am currently contributing 10% of my earnings to my 401k (employer matches 3%), which means I have around $1,900-$2,000 to play around with each month.
I currently have around $22,000 in student loan debt that I have not yet begun to pay off, as the grace period doesn’t end until September. I have no credit card debt. My emergency fund is about $6,000. I will need to buy a new (to me) car soon, as I currently drive a beater with 200,000 miles on it. I also hope to save for some larger future expenses like an eventual down payment on a house, wedding, etc.
So, my question is how should I prioritize these financial goals? Should I pour every dollar into paying off my student loans as fast as possible? Should I add even more to my 401k and pay the student loans and car payments over time? Should I chip away at the student loan and pay for a new car in cash as soon as possible? Should I forget everything else for a few months and bolster my emergency fund?
I really appreciate any guidance or thoughts you have!! :)
Submitted May 26, 2020 at 08:09PM by Chem_inem https://ift.tt/2X8By4x
