Hey guys, I've been here off and on reading for about a year now. I feel it's finally time to get some advice from the experts.
So I'll get straight to the numbers and write out plans afterwards.
ME:
-22 years old
-3 years in banking
-$38,000 base salary, give or take around $3500-5000 in commission annually, not including investment referrals
-Series 6 & 63 licensed
-Life and Health
-Looking to qualify through referrals to take Series 65 so I can begin selling
DEBT:
-$16,200 car loan @ 2.0% interest
-$8,000 new installment loan to cover medical bills @ 12.99% :(
-$13,200ish student loans with fixed rates that vary from 3.5-4.5% (4 seperate loans)
- $0 in CC debt and have over $35K+ in available credit, I use the Chase Sapphire Preferred for all spending and pay it off weekly
BILLS:
-$479 rent (my portion)
-$353 car loan (I've been paying 375-450 depending on month)
-*EDIT* $160/month car insurance for full coverage, (I pay every 6 months to get this rate if I were to break it down)
-$181.20 for the new loan (i believe, i just got it so I'd have to look again at my docs)
-$150 student loan (minimum is 143.54 or something)
-$100 for phone and wifi combo
-$12 renters insurance
-$10 gym membership (not giving up, I'm very active and use it at least 4-5X a week)
-$8 netflix
-$300 savings (i count this as a bill)
-around $165 goes into 401(k) monthly with about $220 matching
ASSETS:
Not including my car, I have around:
-$4500 in emergency savings
-$1500 in general savings
-$700 in 401(k), been at the new job a couple of months now
-$12,850ish in Roth IRA
My primary goal is to cut down debt, however, I want to always be contributing to my savings and 401k for the match. I recently rolled my last employers 401k to my IRA and dumped some more money into it out of my savings to put it up. So this is where I'm starting with.
After bills are paid, I have close to $500 in disposable income. As a banker and someone who works with numbers, I know that realistically I have enough in emergency savings for something to happen and I can cover it, and if it was toooo expensive, a CC as a last resort. My question is, should i cut down my 401k and savings in order to have more money to apply towards debt?? Or should I continue how I am and just make quarterly large payments with my excess cash?
I want to pay down that $8k loan by next year as well as cut my car down. Not looking to buy a home for another 2 years at least and i think with my salary and potential upside through commissions, I can definitely cut even more down. I am predicting another $300/month minimum in bonus.
Please drop a reply and I will be back tomorrow for updates and clarification if needed! Thanks guys.