Right now I work in state government. I make approximately $43,600 annually and my net annual income is $32,880.
On average, if I don’t have any unforeseen expenses like car repairs or medical bills, my average monthly expenses are roughly $1350.
My student loans are roughly $66k. I’m on PSLF and just got my new monthly payments starting this month, which is $243 per month.
I currently save 27% of my gross income, and 36% of my net income. I wanted to aim for 50% net, but with the new student loan payment, the most I can get up to is 41%, pending no unforeseen events. Counting my pension, I’m technically saving 51% of my income. I save $1000 min each mont. Current emergency fund sits at $3000 (had to withdraw due to holiday travel, medical bills, and new unforeseen student loan payment coming out). I need $8000-10000 to cover six months of expenses. That’s my first goal.
A while back you guys recommended that I work towards my emergency fund for 1-2 years while paying the PSLF monthly payments. After that you guys recommended opening a Roth and putting money there to offset the possibility that I don’t get loan forgiveness or leave PSLF.
I owe $3330 to my mentor for helping me move. In March, I want to start putting $800/mo towards that and get that paid off in four months. After that my finance goals are to continue throwing 36-41% of my income into savings and then open a Roth in 1-2 years.
I want to ultimately get a PhD but I want to work and be financially stable before undertaking that. In 3-5 years I want to try to leave state government and move to the federal level. Based on the verbiage on postings, it seems that to get higher level jobs you need a masters or PhD (so considering getting masters in Statistics and Econ or Finance and Econ and then working a few more years in government before going for PhD). I work in Economics, so the ROI for me going to graduate school is high and I know it’s necessary to progress in my career and increase my income. So I’m set on going, but I’m also against paying for school if I don’t have to in order to progress in my career.
Before I can ever apply to a Masters or PhD, I have to take Calc 2-3, linear algebra, and a few upper level math electives. I thought about working full time and taking 1 class per semester so that I can get started on that goal and not have to take out loans. I refuse to add more loans onto my 66k undergraduate balance. That way I would have the pre-reqs squared away for when I’m ready for a masters or PhD.
It costs $377-638/credit hour. The math classes are in the $377 tier. So about $1500 per class. Which seemed doable for me to pay for. But I forgot to count mandatory fees which if they charge at the 12 credit hour are $498/semester. And they are ludicrous. Like paying $109 for a public transit pass when I already pay $68/month at work. So that brings my costs closer to $3000 per semester on top of books. And now I don’t know if it’s worth it.
Technically I can afford it if I keep saving. But it takes me away from my finance goals. Instead of saving $12,000 a year I’m looking at saving $6000. So I’m wondering if I should just take the math classes and be fine with those, then consider a masters, or put a masters and classes off completely for 1-2 years, etc.
You guys always give it to us honestly. Please give me advice.
TL;DR: Net income is $2740/month. Average expenses are $1593/mo. Currently saving $1000-1300/mo and emergency fund stands at $3000. $66k in student loans and on PSLF $243/mo student loan payment. Plan to reach six months of expenses in emergency fund and then open a Roth as insurance for PSLF. Going to grad school will advance my career and income but paying out of pocket while working will dent my financial goals and security. Grad school will cost $3000 per semester. Not sure if I should take the risk on grad school or put it off for longer and keep saving.
Submitted January 09, 2019 at 08:51AM by Comrade_Soomie http://bit.ly/2TBoBeF
