Beginning Jan 1, I will start a new job and I would love everyone's advice so that I get a solid start. I have done quite a bit of my own research, but I can't decide the best path forward (even after running the numbers). I live with my significant other, and while I've tried to show her the ways of MMM, I haven't been too successful, so keep that in mind with the expenses. Thanks ahead of time!
Income: $60k - bi-weekly
Expenses (my portion):
Rent - $755/month (high for MMM, but relatively low for the city I live in; also provides me the ability to use public trans. and walk/bike to work)
Groceries - $150/month
Out - $150/month (I know this is high - still working on it)
MISC - variable (and I'm open to what this amount should be)
Assets:
Emergency fund - $1k
Old 401k rolled to IRA (before grad-school): $1100
Car - paid off 03' Jetta (probably worth $4k)
Liabilities:
Student Loan - $18600 @ 6.8% (minimum=$238)
Specific Questions:
Conventional wisdom suggests that I approach my situation in the following order:
(1) Match 401k (match is 25% of first 6%, so $3600)
(2) Create Emergency Fund (I'm comfortable with $5-7k)
(3) Eliminate debt.
That being said, I have run the numbers various ways, and if I'm shooting for the highest net-worth in, say, 5 years, MAXING my 401k provides the best route. That route elongates the life of my loan to 5yrs from 18 months if I were to attack it with very large additional monthly payments, but the amount of interest saved by attacking (~$1k) seems miniscule compared to the impact of NOT maxing my 401k from the get-go (potentially $10k). As always, the power of compound interest is incredible.
So, in short, do I:
(1) Max 401k and split the rest between loan and emergency OR
(2) Match 401k, aggressively fund emergency, then aggressively attack loan, and finally Max 401k?
I am wide open to your advice, experience, thoughts, etc. I have probably forgotten something that would make the decision as clear as day, so let's hear it! Thanks ahead of time!