Hi guys,
I'm new to the forums, so please be gentle. I realize that there is A LOT of room for facepunchery here.
I'm a grad student about to graduate in May, but I'm also a 30-year-old with very low retirement savings, despite always taking full advantage of the 401K match when it was offered to me. I feel like I should be contributing more (read: something) to my Roth IRA. But I'm also concerned that when I graduate, income based repayment on my student loans would drag them out 30 YEARS and triple their expense, and that is just unacceptable to me.
Other factors: I will have to move in August, which means saving first, last and security depost and moving expenses of about $3,600 (and that's renting the smallest Uhaul and moving my ever-smaller collection of stuff.) Also, you'll notice a discrepancy between my monthly income and expenses. I've been using some of the student loan for living expenses, though I'll admit that I hadn't been doing that on purpose.
I was nervous about my finances before doing the numbers. And now I see that MY HAIR IS ON FIRE, and I'm about to enter the job market again in a few short months.
Okay, the awful truth (using a monthly average based on the last 90 days):
Net salary (Part time work at institution I attend, includes $1K tuition break not counted here): $690.55
Gift while I'm in grad school: $500/mo
Misc income: $30/mo
Total average monthly income: $1,220.55
Rent: $780 (includes Direct TV and Internet. Can't cancel TV and save $$)
School Loan: $150 (Loan is unsubsidized, all interest will become principle upon graduation.)
Auto repair, gas and tolls: $270
Parking: $50
Insurance: $49
Groceries: $117
Dining out: $220 (**FACEPUNCH FACEPUNCH FACEPUNCH**)
Phone: Was $90/month, but bought Republic Wireless last month. Down to $25
Water & Electric: $78.98
Entertainment: $37 (usually going to the movies once or twice a month - *FACEPUNCH* - go read a book.)
Total monthly expenses: $1,739.11
Assets:
Retirement: $6,524
Savings: $1,662 (not enough for first, last and moving money)
12 year old car: $1,108
Debts:
School loan at 6.8%: $14,103
School loan at 5.41%: $16,701
Total debt: $30,804
Have a credit card, but don't carry a balance and have just put it in the strong box so that I stop swiping it at restaurants.
Between May and August, I'll be able to work more hours, and could possibly double the $690/month to something like $1,200/month. However, I don't know if I'll receive the gift of $500/month, as I will have graduated so in terms of the dollar amount it may be a wash. I will also have more time to freelance, which is feast and famine. Will make at least an additional $600 after graduation, but potential for more.
Besides eliminating dining out and movies, how can I turn this around? Where can I save the money to move in August? Am I absolutely insane to be thinking about my retirement account when everything else is in flames?
Thanks!