Hello All,
I have been researching ways to become financially independent and came across Mr. Money Mustache a few days ago. I wanted to get a better understanding of where we are and get some advice regarding our current situation. I will attach the excel I created to give you a breakdown of everything but here are the cliff notes.
Married with no children
Live in Denver, CO with plans to move back to Florida in ~2 years
I just received a promotion into a tech sales role and we are anticipating a jump in pay. My estimate would be between $20K – $100K more depending on my success.
Annual household income before taxes: $89,000
Annual Expenses: $35,000
Annual Savings (401K and HSA): $9,300
Total Debt (Mostly Student Loans): $25,790
Total Savings - Retirement/Cash: $67,500
Question #1 – My student loans are broken down as follows and I am curious if refinancing them would be worth it? I am unsure what the “outstanding interest” is referring to? Is it strictly how much interest is left on the loans?
Student Loan 1 – $9702 is 5.96% interest rate “Outstanding Interest” is $14.25
Student Loan 2 – 13,688 is 5.59% interest rate “Outstanding Interest” is $18.86
Question #2 – Given the increase in income what should be a target savings rate?
Question #3 – Do any sales people have advice on how to manage commission peaks and valleys? Example: July Commissions = $15K and a drought for August, September, October
I appreciate you taking the time to read our situation and provide feedback in advance!