Greetings Mustachians!
My wife and I have for some time been looking to pay off of our student loans. Unfortunately I had a medical emergency which meant I was not able to work for 6+ months, but we are finally in a place to start making some headway.
We have two months living expenses in an emergency fund (6k for two months- we live in an expensive area with rent and loans taking up close to $2000 of that) and are looking to put $2,000 to $2800 extra towards our loans each month (depending on our income). We have roughly $40k in student loans and another $5k car loan.
My biggest question relates to our non-emergency fund savings. We have roughly 14k in that account (non-investment) that is not doing much for us. It dawned on me this evening: should we take out $7k-8k and slay some of our loans right off the bat before moving into the monthly $2k+ extra? I feel comfortable with our emergency fund, and we have fairly good job security, but I am hesitant to move that much over to loans. Perhaps this is a symptom of our history with not being able to work?
Thoughts?