I just want to make sure I've got a good plan going.
My take home pay for my new job will be a little over $1300 a month. I also make commissions at my side job, which are not dependable (no guarantee I will make any profit in a given month, but when I do they are at least an extra $1,000 under the table, which I plan on throwing directly at loans when I get them).
Current living expenses are rent ($200/month with no utilities), phone ($27/month), Spotify premium ($10/month), and gas/helping with groceries. Gas is reimbursed at this new job so that part is nice. I am still on my mom's insurance for health and car because she is a very, very nice lady.
The expensive part of my life is loans.
My federal student loans are income based so when my grace period is over I will technically owe very little because my income was so low, but I plan on paying at least $200-$400 a month.I also owe around $100 per month for Perkins, but the grace period doesn't end til March.
My car payment is $250 a month at like 13% interest, which I plan to refinance at a local credit union for a fraction of that cost by next month (I was waiting for more income). Either way, I plan on taking over on paying for my car insurance eventually which is another $250 a month because no-fault states suck.
My Plan:
Pay a tiny bit more than the minimum on my student loans each month, but devote most of my extra money to paying the car off. Once the car is paid off I will have cheaper insurance (no longer needing full coverage) and no monthly payment, so I can begin hitting the student loans harder with what I used to pay on my car.
Is this a good plan, or should I make my extra payments more of an even split between the two things?
Submitted October 03, 2018 at 04:41PM by Nugs_NotDrugs https://ift.tt/2NmmbwT
