Okay some backstory:
I just graduated with a Bachelor’s in an Engineering discipline and currently $111,000 in student loan debt. The silver lining is that I was offered a position with an awesome company starting at $37.29/hour full time.
I went to an out of state school and unfortunately my parents couldn’t cosign for me because of past bankruptcies so my sister cosigned instead and the majority of those are high interest rate, like really high. So the following are all of the loans and the rates I have:
$7811.84 @ 3.86%
$7691.68 @ 4.66%
$13437.17 @ 4.29%
$48968.63 @ 11.75%
$21917.54 @ 11.25%
$2380.77 @ 8.50%
$8500 @ 5.00%
Okay so I have a 743 credit score which is nice for my age and this is my plan:
From my calculations based on 40 hours a week I will get roughly $6,000 pre-tax each month.
I plan to move into a rental house or apartment near my work with 2 friends bringing the rent to roughly $700 per person per month. If I budget $250 in utilities and phone bill and $400 in food a month. I will be able to stay on my parent’s insurance for 1 more year or so depending on how the ACA repeal works out so that is covered for now, but if needed my monthly bill should not be more than $150 so I will budget that to be safe.
This bring my total of essential expenses to $1500/mo leaving me with $4500/mo to pay student loans and build an emergency fund.
I plan to save $6000 initially as an emergency fund why paying minimum payments on loans.
My company does not match 401k investments for the first year, so I will wait to contribute until they match.
After my first month of income and I have a paystub I will go through SoFi in order to refinance my high interest private loans. I have already set up a preliminary rate check with their calculator and it offered a fixed rate of 6.5% for the 3 highest interest loan amount.
After I have accumulated an emergency fund and have refinanced my loans I will begin putting all of my excess income post essential expenses into paying off my loans.
Is there anything I am missing in my budget, or anything you would do differently if you were in my position?
Also thank you for taking the time to read my story and respond.
Submitted January 13, 2017 at 03:29AM by HOW_YOU_DOIN_ http://ift.tt/2jqqklM
