Hi all, I've been a blog reader and forum lurker for two or three years now - I guess it was about time I created an account and participated. I'm looking for advice on how to divide my extra funds between savings and student loans.
Here are the numbers:
Net pay (after 401(k) contributions): ~$3500/monthMonthly expenditures:Rent: $0 (live with parents)
Phone: $45
Car Insurance: $42
Car Payment: $277
Gas: $120 (killer commute, but good mpg)
Student Loans: $190 (minimums, see below)
HSA: $45
Spending/Other: $175
This leaves me with about
$2600 left per month.
Areas of Focus:1. Remaining undergraduate student loans (numbers slightly rounded):
- $7,500 at 3.17%
- $5,500 at 3.02%
- $17,500 at 2.97%
They're all sourced through one provider; monthly minimum is $190 as mentioned above.
(A note of pride: I graduated 3 years ago with about $60K of student loans; I've paid off half of that and paid for graduate school out of pocket to the tune of $12K; this was at a
much lower income.)
2. Savings for future. I do have an emergency fund of ~$1500, but I'm looking at saving up for a down payment on a condo or upfront rental costs (first/last/security), and furnishings.
So, my question is: what would you do with $2600, those loans, and a desire to move out?Options I've considered:1. Live at home for another year, save $300 a month, and kill the loans. I could then move out with $3600 to cover the upfront rental costs.
2. Live at home for another year or so, pay minimums on the loans, and have enough to put 10% down on a 180K condo close to work and have some left over.
3. Some mix of saving and loan-killing (but what mix?)
4. Move out now. My gas bill would go down to ~$40 per month and I would gain about 2.5 hours of my life back per day, but I would suddenly have rent, utilities, and food bills coming to about $1550/month. (Rent is high near work - about $1200/month for a 1 bed apt.) I would also then have about $1000 to divide between savings and loans.
Thanks in advance!