...today I woke up punching myself in the face (in true mustachian manner)
I had previously coasted through my life giving no thought to topics such as frugality. My parents, bless them, were not the most fiscally responsible people and did little to teach me about finances. I am in the second half of my last year in graduate school and ponying up to the challenge of getting myself out of student loan debt. Knowing as little as I do, I started browsing around and arrived quite promptly to the MMM blog. I literally felt my pulse quicken as I started reading and learning. I started at the beginning and have made it about halfway through the blog entries so far, and my entire outlook on my life situation has changed. When you read below, you will see how blind I have been to my own good fortune.
Now, I am still extremely wet-behind-the-ears so to speak, and would like some advice from the kind hearted people in this community. It is an incredibly powerful and motivating feeling to look at my own situation and see such potential, and I would like to maximize it. What do you guys think?
Age: 24 years
Salary Income: ~30k/year. I work abroad and will receive a 12k bonus. Of course, its taxed to hell BUT due to spending my entire work year abroad I qualify for a seriously sweet tax return. In addition, I am currently a graduate assistant which means I take a cut in my paycheck compared to my coworkers but in return get a "free" master's degree.
Other/future Income: I will (hopefully) be graduating in June, so my graduate assistant pay cut will be removed, in addition to a yearly raise, and a raise from having a masters. In addition, I will be qualified to sit a test for a license. (My field is Applied Behavioral Analysis) I stand a very good chance of being promoted to a leadership position. I am a teacher and my client is a very wealthy family. Part of my job is to travel with them which means, aside from free travelling, an extra $1000 cash each trip. I'd say we travel a good 4-5x per year. (this is my second year with the family)
Student Debt: My loans are currently being deferred as I am still in school. However, I was surprised to discover after graduating that I owe about $63,000. Apparently my parents had been taking out loans left and right without even keeping track of where from let alone how much. /sigh. A bit of research has shown me that I will qualify for a $17,500 loan forgiveness program for qualified teachers of special needs students after another year in the field.
Living expenses: I don't pay for rent, cable, laundry, or any utilities. I have excellent health coverage, without even having to pay copays. I have a free gym membership, and I eat the majority of my meals at work for free. I do not have a car; I am driven to work and outside of work I can take a taxi from one side of town to the other for about 10 dirhams or about $2.70. My cell phone bill is 49 dirhams/month which is about $13.00. I keep a Netflix account open for my sister in the states for about $9.00/month. (even though Netflix is censored in this country, ack!)
Despite living what I am ashamed to admit has been a rather exorbitant lifestyle of eating out, shopping, drinking, etc, I still have about 22k sitting around in my bank account from last year doing nothing. (currently punching myself in the face as I type)
But I think the really exciting prospect for me is that my significant other is in the exact same situation as I am with regard to living expenses and income, but he has no student debt at all. I am sure we could comfortably get by, just doing what we are currently doing. But I want to be more in control. I am trying to find out if my employer matching contributions on a retirement fund. For that matter, I am also trying to look up the difference between a 401(k) (or in my case, a 403(b)?) and a Roth IRA. And also this whole Vanguard business. It is a lot all at once for my little mind to handle, but my stubble is quivering and I want to one day have a beautiful, flowing money moustache.