Hello!
I am 27 years old, living in a relatively low cost of living area in the midwest. I have $110k in federal student loans from undergrad and law school (rates range from 3.0 - 5.6% edit: 6.5% - I fact-fingered this the first time I typed it, and this may change some advice). My current salary is $70k annually + bonus (typically around $10k/year, but this is irregular and I don't factor bonuses into budgeting). I am a project manager in the banking compliance industry. I anticipate a raise to the 80-85k range in the next six months. This is relatively new - I had been treading water at $45-$50k until October 2017.
With the increase, I have been newly motivated to pay off these loans as quickly as possible. My take home is $4,070 per month (after retirement contributions & health insurance), and I am currently budgeted to spend $2,300 monthly, so I have about $1,700 per month to throw at the loans. My only other debit is a car loan (2014 Honda Civic, $8.8k at 2.5%). I have no credit card debit and my credit score was 810 the last time a hard pull was done.
I am currently contributing 3% to a retirement account to get my company's full match. I have a $12k emergency fund (6 months expenses). I am in several weddings this summer, so I have also been throwing $300-$400 per month in my savings to cover extra costs so that I can maintain the $12k balance.
I guess I just want a gut check on this - I know that I have a significant amount of debt, but I don't necessarily feel like I'm drowning. Am I off-base here? What changes can I make to get this paid down faster? I have no plans to make large purchases in the next several years. Also, I'm one of those people that likes to see progress and check things off of a list. Is it very dumb to throw all of my excess at the car loan just to get that off of my plate in the next few months? That way I can start to throw the extra $200/month at the loan sooner.
Thanks for any help!
| Expense | Amount |
|---|---|
| Rent | $855 |
| Gas/Electric/Water | $100 |
| Car Loan | $206 |
| Insurance (Car & Renter's) | $106 |
| Loan Payment | $257 (PAYE - does not come close to touching the principal) |
| Parking | $135 |
| Cable/Internet | $121.81 |
| Netflix/Spotify | $22 |
| Food | $200 ($50/week) |
| Fun, gas and car, general living | $300 ($75/week) |
| Total | $2,302.81 |
Submitted March 25, 2018 at 10:09AM by tacoemoji https://ift.tt/2GmSSLj
