Hi everybody.
I already see that this post will be one of many offering introductions and asking for help.
I'm super new to MMM blog, but have totally agreed with what I have read so far regarding paring down one's lifestyle. But as I read the blog and the forums, I just keep getting more and more anxious about my finances.
First, I think part of my anxiety and confusion is that I feel like I'm in a different position from many people here. I'm 25 and I feel like I'm in a career (social work) that doesn't have as much earning potential as MMM's did or other people posting in this forum. I also feel very naive when it comes to this financial stuff, having only been a salaried employee for only the past 7 months. Before that, I worked minimum wage or slightly above minimum wage hourly jobs or contract work before and during grad school.
(Please don't take this explanation as me whining or disparaging anyone, I'm sure everyone here works their ass off for what they earn. My career choice is my own and is one of passion, but I'd still like to try to be financially stable, while accomplishing future goals).
I graduated from grad school last year and I'm currently a social worker at a job that pays $32,000 a year ($1650/month take home).
I have $42,000 in federal student loan debt at 6.8% interest. I'm currently paying the minimum standard payment of $503 per month. However, my dad, being the greatest, has offered to pay this until December of this year.
So with that said here's a list of other expenses that I pay out of my own pocket:
Rent: $550
Utilities: average about $75/month
Groceries/household goods: $200
Gas: $160, but I do get monthly reimbursements for most of this as I use my car for my job.
Phone: $85
Hulu plus/Netflix: $16
Cat: $25 (litter and food)
Savings: $300
Which leaves me with about $200-$250 each month, which I had been spending on frivolous antimustachian things like eating out with my bf, going out for drinks with friends, or buying stuff.
I currently have about $2100 in savings.
The blog and forum has my head spinning and I'm not sure what my first move should be.
My plan was to continue to save until I've established an 8 month emergency fund and to switch to income based repayment plan for my student loans in December. But now, I'm not sure.
My gut instincts are either to aggressively save until I have my emergency fund or to throw as much money at my student loan as possible.
Any advice on what I should start with? All perspectives welcome! Thank you for taking the time to read!