Hi all!
I thought I would take this question to the Mustachian boards, as it's something I've been musing over the last month or two. As a young avid reader of the blog, I would appreciate some wise input!
About me:
- 24 year old male, 4-year college degree
- Projected 2013 income is about 25k (I work two jobs, neither of which are well-paying but one of which has potential).
- Student Loan: 6k at 2.7% interest, currently paying monthly minimum of $50.
- I have about 12k in mutual funds and 4k in a Roth IRA I just started (looking to top this off for 2012).
Up until recently I had been paying 4X the minimum on my student loans, and used my savings from last year's job to knock off my other student loan of 8k completely.
Psychologically, it'd be nice to be debt free. But I'm starting to wonder if I should just keep plugging along at $50/month on the loan and focus the surplus on the Roth IRA and other taxable investments where I could likely beat 2.7%. Only the other hand, with just 6k left, I could probably wipe out the loan by mid-summer if I throw every extra buck at it. I live extremely frugally, and have kept my monthly expenses (including rent) to about $850.
Any suggestions or thoughts?