Hello everyone,
I've been reading MMM for several months now but never really had an income to save. I will finish med school in May with $100k debt at 2.75% in an adjustable rate home equity line (thanks to my wonderful parents who gave me the line and helped pay the other $100k). I have $5k in ETFs (60%), AAPL (20%), and F (20%). I will be starting residency in New Hampshire with salary of just under $51k/year.
Currently I own a Honda Fit with 80k miles that I would love to replace with an inexpensive, safer, more comfortable car because the Fit is just miserable on the highway. I will be driving 2.5 hours to visit my girlfriend and family in Connecticut probably at least once/month. I'll be visiting Montreal and Boston fairly regularly, too. I was looking into ex-rental Chevy Impalas or similar, which are around $12k. The other option is to wear noise-blocking earphones on the highway, which I currently do. I also own two bikes, and plan on biking to work whenever the weather permits.
So my question is, how do I start off? My monthly take-home pay should be $3000-3200 if I'm using the online calculators correctly. My school loans are at a very low interest rate compared to my classmates who are typically paying 6.8-8.5%, but the rate is adjustable so I suppose I could see a higher rate as the Fed tapers its stimulus (I am a newbie at economics - is my understanding correct here?).
Right now my plan will be to pay $1300 to loans per month, leaving me with 1700-1900 to live on. I currently live comfortably on $1300/month ($550 rent/utilities) although my rent will likely be higher in New Hampshire, probably $800 ish. I'm actually not sure if I have access to a 403(b) plan - I just matched yesterday and haven't had a chance to call HR about that.
My biggest questions are:
(1) Are my numbers correct in terms of take-home pay?
(2) Are there any major pitfalls to the adjustable rate home equity approach to student loans?
(3) Should I slow down my loan repayment since it is at such a low rate? I can expect a big income boost after residency in 3 years, so my payments during residency won't make a massive difference in the loan but may make a big difference in my lifestyle here and now.
(4) Realistically, can I afford a cheap car assuming I can get $6k for my current car and $2k from parent's graduation gift, leaving roughly $4-5k financed by the home equity line? Are there major hidden costs to car ownership in NH? I understand that registration fees and property taxes are high, but can't find any good estimates of the actual cost.
(4b) What about the Ford Crown Victoria? I understand they are ridiculously reliable and comfortable highway cruisers with good highway mileage. What's the cheapest way to buy one of those?
(4c) What other car options are around $10-12k, and ideally less? Needs to be low-ish mileage, like 75k or less.
(5) What about marriage? Is that pretty much off the table for now, unless we go the courthouse route?
(6) What about a house? I understand that very big down payments are the norm these days, so am I stuck renting until the end of residency? It seems like a shame to spend such a big portion of my income on rent, rather than building home equity. At the same time, I'm unfamiliar with the overall costs of home ownership in NH especially with regards to the harsh winters and old housing stock.
Thanks in advance for any info you fellow Mustachians can provide!