Hey everyone!
Lurker and reader here, but wanted to post about my situation since it is a bit unique to others and I thought I could get some advice along the way!
So, I have student debt, approximately 50k. I am also a public sector employee, eligible for complete loan forgiveness after 10 years of working in the public sector. I am 3 years into that (just turned 31). I'm an Urban Planner making about 49k a year. I like my field, but don't like office drudgery...As of now, I make income based repayments on my loan at about $267 a month. Below are my life expenses, I would say thus far I am only pseudo-mustachian, however much of it has come very easy since 1. I already bike commute and own a home 4.5 miles from my office. 2. My car is mine, no auto-loan (it's a small 4 door hatchback) . 3. My spouse and I do not eat out very often at all, and never regularly rack up a big bar tab.....So do I have a big frugality muscle? No, but I am inspired to have one. I try to do most of my home improvements on my own.
Income:
$2,902 a month.
Mortgage and Home Owners Ins:
$926 a month.
Student Loans
$267 a month
Auto Ins:
$103 a month (I'm paying too much right?)
Groceries/Food
$550 a month, two people...I am ballparking this and could be better at tracking it, sometimes it's less for sure other times could be more.
Subscription services:
$80 (netflix, spotify, ADT, internet)
Phone: $150, paying off the phone..I know this is a bad one and I need to fix it.
All in all I'm saving about $200 a month.
Additionally, instead of a 401K, we have a state based retirement program, which, after working with the state for 10 years, you become vested. Once vested, the state averages the 3 highest years of your salary and pays you that EVERY YEAR after 65 until you DIE. It does not ever run out and the amount does not change, so long as you reach vested status.
On top of that...My mom passed away 2 years ago from cancer...Her life insurance policy has been a major financial windfall. With this money, I purchased my car, made the down payment on my house, and have invested the rest into a Wealthfront Index fund account and a personal IRA currently totalling $48k, I have some more in a money market acct that will be invested into the index fund once I finish remodeling my kitchen.... I received a $10,000 Roth IRA managed by Edward Jones.
So, in 10 years my goals are:
1. no more student debt.
2. Vested in the state for the security of that constant salary after 65
3. Renting my current home and paying a hefty chunk of a new homes mortgage with the rent of that one...
4. Have an even healthier, stronger investment fund..
Keep in mind that I'm pretty invested to staying here in this state, and hopefully working for it, for the next 10 years to become FI at 41ish. I know things can change, you can get laid off, etc but for now this seems to be the better path than immediately paying off the student loans...As sticking with the state allows a 2 fold win of 1. debt forgiveness 2. vested status..
I already know I could do better in the general savings department but, does my above scenario seem like a realistic goal based on what I've told y'all here?
Thank you!!!