My Situation: I recently graduated from college in mid December and started my career in mid January. My gross annual income is $72k (approximately $55k net) and the company I work for matches 100% on my first 3% contributed to my 401k and 50% on the next 3% contributed (for a total of 100% matching of 4.5% when I contribute 6% or more). I currently have approximately $45k in student loan debt which I’m still in the grace period for until mid July. Half of my student loans are federal loans which will incur interest at about 5%, while the other half are from a private party and do not incur any interest, but still need to be paid back in full. For total living expenses (including rent, utilities, tv/streaming services, phone, estimated car payment (if I need to buy a different car), car insurance, gas, employer health insurance payment, food, and some fun money), I’m looking at approximately $1675/month.
My question: I’m trying to figure out how to allocate my remaining net income between student loan payments, 401k contribution, and emergency fund. From reading previous posts in this sub, it seems like paying off my student loans as fast as possible is a good idea, but would it really be worth not taking full advantage of my company’s 401k contribution while I’m doing that? I’m very new to all of this having only just begun my career, so any advice you guys can give me will be much appreciated, thanks!
Submitted February 13, 2019 at 06:35AM by Reverse_Giraffe8 http://bit.ly/2GppvZs
