Author Topic: First time posting, New Mustachian In PR.  (Read 928 times)

krystoph

  • 5 O'Clock Shadow
  • *
  • Posts: 3
First time posting, New Mustachian In PR.
« on: March 01, 2018, 09:58:01 AM »
Greetings fellow Mustachians.

I'm a 30 year old single programmer living in Puerto Rico. I've been following the mustachian lifestyle for a few months.
This is my current situation:

Debts
Car loan: 10k (@10% for the next two years, $375 monthly)
Student loan: 6k (@6% paying $100 a month)
House: 100k (my father passed away recently and left me his house with a sizable mortgage at $800 a month)

Current Cash: 34k
Income: 3k a month

I'm thinking of paying off my loans and investing in some stocks and bonds (or some other type of investment), and fixing up the house and rent it out.
I currently have no financial investment to my name and don't know where to start.

What would you do in my situation? What would you invest on? Any and all recommendations are welcome. Thanks
« Last Edit: March 01, 2018, 10:00:32 AM by krystoph »

Rob_bob

  • Stubble
  • **
  • Posts: 207
  • Location: Oregon
Re: First time posting, New Mustachian In PR.
« Reply #1 on: March 01, 2018, 01:05:14 PM »
Is that car loan really 10%!!! Get rid of it fast.  Student loan next.  Whats the % rate on the mortgage?  Maybe refinance at a lower rate? 

Do you have a 401k available?  If so start contributing as much as you can.  If not open a Traditional IRA.  A Total US Market index fund would be a good place to start investing.

SlowMustachian

  • 5 O'Clock Shadow
  • *
  • Posts: 43
Re: First time posting, New Mustachian In PR.
« Reply #2 on: March 01, 2018, 08:57:34 PM »
Agree, get rid of car first.  Then use that extra money to pay off that school debt, thatís a high rate.

FINate

  • Handlebar Stache
  • *****
  • Posts: 1322
Re: First time posting, New Mustachian In PR.
« Reply #3 on: March 01, 2018, 09:04:02 PM »
Use your cash to pay off your auto and student loan debts.

Maybe sell the car if biking is an option.

What is the mortgage rate?

Keep some cash set aside as an emergency fund.

With what's remaining open a Vanguard account and buy a low cost total market index fund (e.g. VTSAX). Add to your holdings regularly and consistently, every paycheck. Don't worry about ups and downs, it's all noise and the worst thing you can do is panic and sell while the market is down (sounds obvious, but so many people make this mistake).


krystoph

  • 5 O'Clock Shadow
  • *
  • Posts: 3
Re: First time posting, New Mustachian In PR.
« Reply #4 on: March 02, 2018, 06:44:41 AM »
Is that car loan really 10%!!! Get rid of it fast.  Student loan next.  Whats the % rate on the mortgage?  Maybe refinance at a lower rate? 

Do you have a 401k available?  If so start contributing as much as you can.  If not open a Traditional IRA.  A Total US Market index fund would be a good place to start investing.

Yes its 10%, my credit wasn't good when i bought it.
My job doesn't offer 401k.
I don't remember the mortgage rate i think it was like 3-4% Im still handling all the inheritance paperwork.
I thought about investing in an IRA and VTSAX in vanguard, I already have personal capital and like the idea of being able to monitor it all in one place.

Thank you for all your input.
 
« Last Edit: March 02, 2018, 06:50:11 AM by krystoph »