Life Situation: I've wanted to post a case study for a while, but I didn't have anything but a few hundred in savings to work with. The 22 year old recent college graduate, just getting started on this whole FI/RE business. My mom currently claims me as a dependent because I just graduated, although I am set to live on my own as of June 3. I live in Florida, the St. Pete/Tampa area. I just got offered a job as an inner city teacher, and part of the benefits include a fully-furnished on campus apartment with utilities covered by my employers.
Edit: Got my driver's license. I move in two weeks.
Gross Salary/Wages: 450/month, plus a food stipend of 215/month.
Edit: I definitely don't plan on using all of that food stipend on food. I don't eat out much if at all and I enjoy cooking. My goal is $4/day, which would be $124 a month. That augments the 450 with an additional 91, bringing it to 541/month. That gives me a bit more breathing room, but it's still not ideal.
Edit: Hours are 7am- 3pm, with a couple extra hours a day for curriculum planning. One Saturday out of the month I will be needed to work as well.
Current expenses: I don’t really have many regular expenses at this point- I generally just buy necessities when I need them, such as toiletries. My mom has me on her cellphone plan, and given I’ll be moving into a fully-furnished rent-free apartment provided by the school I’ll be teaching at, and that I have a generous food stipend, overall I shouldn’t have many expenses. Which means now is the best time to take advantage of the fact that I can really live below my means, although I am not making much.
Edit: Estimated monthly payment for my student loans is 338.50. For some weird reason, it thinks I'm in school until 2021, which isn't the case. I'll have to call about that.
Edit2: Just found out they will have me filling out paperwork for loan forbearance the day I move in.
An additional long-term exception is that I might have car insurance in a few months. That’s still up in the air.
In more recent terms, I have an internship abroad with a very specific dress code that I’ll need to purchase for, and I’ll have to buy some things like pots and pans to furnish my apartment- not furniture, however.
Assets: About $300 in cash and savings
A bicycle
A few savings bonds taken out when I was a baby that haven’t matured yet
5,000 loan forgiveness when I finish one year working at this school.
Liabilities:Student loan- 28,000 principal
Principal Balance Interest Accrued Interest Outstanding PrincipalLoan 1: 3,500 3.86 -- 3,500
Loan 2: 2,000 3.86 270.96 2270.96
Loan 3: 2,000 4.66 227.47 2227.47
Loan 4: 5,500 4.66 -- 5500
Loan 5: 5,500 4.29 -- 5500
Loan 6: 2,000 4.29 129.07 2129.07
Loan 7: 5,500 3.76 -- 5500
Loan 8: 2,000 3.76 27.58 2027.58
Balance: 28,655.08Specific Questions: I know I should be saving some of my income, but I’m not sure proportionally how much I should be saving/investing and where against how much I should be siphoning into paying off my student debts.
Work also offers several benefits, but since my mom is very busy with her own tax and legal stuff, I don’t really have anyone except google to go to with my questions and google hasn’t always proved very helpful and the MMM search feature isn’t working for me. If these questions aren’t where I should ask this I’m sorry- If anyone knows where I can find a place online to learn all this that would be appreciated. There will be someone to explain this in the first week of work, but I need immunizations for my internship and I frankly cannot afford them. The sooner I can get the health care implemented to cover them, the better.
Edit: I looked over the health insurance booklet and either they don't provide a quote or I'm missing it.
Edit2: An update package I just got states I will receive full health benefits, but no note about additional cost to me if any.
Edit3: Confirme Health Insurance is no cost to me.
For the long-term disability, there are two options that are identical except for the maximum benefit duration- 5 Years to age 70 or to age 65/Reduced Benefit Duration- and no amount of googling has clarified the difference. The first plan is about a dollar semi-monthly, the second is about a dollar and a half semi-monthly.
Short-term disability through Aflac is offered, but the prices are significantly higher- 5.20 for 800/month coverage and 7.80 for 1200/month coverage. Is this worth it?
Another offered benefit is a Flexible Spending Account, which I understand is for expenses like health or dental that insurance won’t cover. The FSA is not taxed according to government websites. (
https://www.healthcare.gov/have-job-based-coverage/flexible-spending-accounts/) This and the Health Savings account are mutually exclusive, and the HSA seems to have more overall restrictions on it- can’t be claimed as a dependent, can’t be entitled to Medicare, etc. However, the HSA seems to roll over the balance while the FSA does not. Which, if either, is worth getting or should I opt out?
My employers also offer a 100% employee paid Group Term Life Insurance Policy. I’m assuming I’d be foolish not to opt in if they entirely foot the bill. Is that correct?
Current To-do List:*Look into Income-based repayment
*Call to find out why my graduation date is wrong
*Call to find out minimum payment for student loans
*Email professor questioning wisdom of the car
*Find a local part-time job with a night shift I can take
*Go with the HSA