I cannot even believe how fast life flies by when your having fun (and by fun I guess I mean working). It will soon be a whole entire year since I began working as a RN in nyc. Since I began I have been working diligently to pay off my debts. To put my financial world into perspective I graduated college last year in MAY (2010) with a grand total of about fifty thousand dollars ($3000 in credit cards, $30,000 school loans, and $17,000 car loan) in debt if I had that now I would probably be sick but at the time it didn't really bother me. Yes I wanted to get rid of it but I knew I had time and I prayed that I would get a job. I was lucky enough to get my job very soon after graduation with an amazing starting salary of around $80,000 I can't even believe how lucky I was. After taxes and setting up my 403B(a ten percent decuction) and union dues my take home pay is around 3500 dollars a month. I live with my boyfriend luckily and only really have to spend a grand total of about 1500 dollars in living expenses not including little things like gas etc. Almost 12 months later I have completely paid off my credit cards and 5 of my 7 school loans (down from thirty to just ten thousand), and have paid off almost ten thousand to my car leaving me with about 7900 dollars left on that loan. In total I have about $18,000 dollars in debt remaining from $50,000 thousand. I have almost 5 thousand in my 403B and almost $10,000 dollars in savings. I am on a mission to eliminate the rest of debt in just eight more months before me and my boyfriend sign onto a new lease in possibly a slightly nicer apartment. Hopefully I can make it any tips or advice would be warmly welcomed!
Tee[/font]
July 22nd, 2011 at 04:36 am 1311309371
July 22nd, 2011 at 08:23 am 1311323000
July 22nd, 2011 at 08:44 am 1311324293
Welcome.
July 22nd, 2011 at 11:15 am 1311333352
Also you mentioned that you'll be moving to a better apartment. Is it going to be more expensive? Are you saving the difference now if it is?
Are you able to contribute to an IRA in addition to your 403b?
Have you thought about transferring your debt repaying money to savings once it's gone?
I'm really looking forward to how all of this pans out for you!
July 22nd, 2011 at 04:22 pm 1311351764
July 22nd, 2011 at 08:36 pm 1311367015
Jerry
July 22nd, 2011 at 10:40 pm 1311374414
Honestly in the beginning I just started randomly paying debt and saving for an emergency fund... Sometime around Jan I stumbled onto Dave Ramsey's snowball effect and read that he suggested just a $1,000 EF be kept until debt was gone. I didn't feel comfortable with that but having almost $12,000 in savings at that time I decided I'd take all but $5,000 and pay off my debts. Since then I save twenty percent of my paychecks for savings and a large chunk for paying off debts. I pay at least one thousand to my car monthly and I try to pay a thousand to my school loan... It doesn't always work out if I have birthday presents to buy or a trip to pay for but I make an honest attempt. Also there have been months that my boyfriend who is a tattoo artist doesn't make enough to pay his half of groceries and I kick in.
About the apartment yes I'd love to move to a nicer more expensive apartment we have very little room here and are crowded quite frequently unfortunately. A few months ago I would have said this was definitely something I wanted to do but recently I've rethought it. I have thought about how awesome it would be to have one more year in this situation not only to finalize debt repayment but also start saving for a home. I am definitely saving the difference living here or using it pay off debt.
I have not started an IRA mainly because I am working paying of my debts. I don't know when that will come. After debt repayment it will be about saving for a home and with a goal of 100,000 for the downpayment I have no idea if I'll be able to do it. I'd love to hear your opinion about leaving out an IRA.
And Yes! No doubt in my mind when I am done with this debt repayment I will be placing probably ninety percent into a down payment fund and probably will use the other ten for fun. I figure I'll deserve it at that point.
Thanks for your interest I'm excited to be here! I'm hoping to learn a ton!
July 23rd, 2011 at 09:27 am 1311413273