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I've lurked and commented on this subreddit for quite a bit and ironically now that it is time to start my financial journey it's more difficult then I imagined. Here I am for help.

I'm graduating college this May and I begin working in June. With that being said I posted my financial details below.

Debt: ~$40,000 (right below) all in school loans.

School loans break down as follows (all with a 3-month deferment after graduation):

  1. Principal: $2,850 @ 7.99% interest ($167.66 acrrued)
  2. Principal: $8,915 @ 6.24% interest ($118.55 acrrued)
  3. Principal: $8,614 @ 5.2% interest ($253.71 accrued)
  4. Principal: $7,332.62 @ 6.24% interest ($374.78 accrued)
  5. Principal: $12,751.72 @ 0.0% interest (because of the halt on federal loan interest)

Cash: $2,500

Brokerage account: $6,000 (assuming the market takes another decent dip)

Income (starting in June; my first paycheck will be in July): $71,000 per year ($4,141 per month after tax @ 30% tax rate which was just a guess on the higher end)

Expenses (starting the date I get my first paycheck): $8,000 per year ($667 per month on the higher end). I did not include minimum loan payments here because this is part of the plan I am working on developing.

I've been fortunate enough that my mother has allowed me to stay at home for two years (I will be 20 when I graduate). Part of my $8,000 in expenses is the bill she has asked me to pick up, a cell phone bill, and car insurance. I own my car outright and don't plan on changing vehicles for a while and if I was forced to do it I would be looking at something in the $3,000-$4,000 range paid in cash.

How do you go about becoming debt-free and prepared to begin making large investments (such as larger equity positions, real estate, or other I haven't thought of)?



Submitted April 19, 2020 at 07:44PM by NCostello73 https://ift.tt/2ROYzX5

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