Title says it all.
27F making $55k in a high-ish cost of living area (about an hour outside DC, town with a rural feel but the house prices are affected by proximity to the city). Health insurance, FSA, all that. I feel very blessed to be able to go to the doctor when I need and to overall live a pretty comfortable lifestyle, but sometimes feel like I’m not where I’m should be (mostly because of frivolous spending in my early 20s when I wasn’t thinking about my future). I could use some validation and/or advice where it’s due. Here’s the breakdown:
The Good: Income: $3050/month
Own my own home with a $165k mortgage at 2.65% interest. This was a mental health decision more than a financial one - I HAD to get out of the basement apartment where I was living but apartments were so expensive and I was so miserable in the burbs that I decided to buy and become a commuter instead. Don’t knock me too hard for this one because homeownership and living in the mountains has been the single best decision I’ve made in years.
$28k 401-something retirement plan. Honestly retirement stuff confuses the hell out of me but I know it’s there.
Just opened a Roth with $200 last month. Yay!
$7k emergency fund, I would like to get this up to $10k as quickly as possible to help myself feel more secure.
Have a credit card that I’m starting to use more for the rewards but pay it off 95-100% in full each month.
The Bad:
$14k student loans and $10k car loan. I want to use an amended snowball method to pay these down - paying down in big chunks rather than throwing all my expendable income at them. I’ll explain why in a bit.
Monthly expenses total around $2500/month but can go higher occasionally for home maintenance or appointments. I allow myself around $150-$200 for gifts for others, home items, clothing etc (I’m still “nesting” and finding things I want/need for the house) and $100 for home improvement/maintenance. I generally save around $300-400 a month.
My goals are to up my savings a bit to feel more secure, then pay off my loans in large chunks. I’m hesitant to throw all my extra income at loans every month because I still want to enjoy my life. For example, I would like to take a cruise with my parents in summer 2022 and I can’t do that if every spare penny is going to loans. So reddit, what’s the verdict? Are my finances and plans getting roasted or toasted?
Submitted May 07, 2021 at 08:29PM by sibandaud https://ift.tt/3xZ71GK
