This is in regards to looking out into the future. Currently I have $14,000 in student loan debt that I will be getting rid of by the turn of the new year (February at the latest). That will leave me with a few thousand of a cashpile to start 2013.
By the end of 2013, based on my current budget and how much I'll pay off my car in the next 14months, I'll have roughly $30,000 in cash and owe around $23,000 on my car (4.59% @ 66 months purchased in Oct. 2011).
My question is should I keep the $30,000, pay my bills normally and continue to stockpile cash/retirement, or should I cut a check for the car in Dec. 2013, leaving myself with 5000-10000 cash depending on my 2013 income varying and then start fresh with no debt?
If it helps also, I'm 24 years old and am living pretty much at cost of what I can do, working 75 hours a week in two jobs. Monthly expenses, including the student loan payments I'm making right now is roughly $2500-2700 a month while I take in $4800-5300 a month (about a $2500/mo average left over after bills).
My goal is to move apartments in Jan. 2014 which would increase my housing cost from 750 to 1200-1800 depending on a roommate situation. The increase will be offset by an income increase and the removal of my student loans and will still allow for me to build wealth in both cash and retirement. Obviously with the car paid off, I can do even more, but with it not, I'll have a lot more of a cushion (again, about $20,000 - $30,000 a year).
Any feedback would be awesome!
By the end of 2013, based on my current budget and how much I'll pay off my car in the next 14months, I'll have roughly $30,000 in cash and owe around $23,000 on my car (4.59% @ 66 months purchased in Oct. 2011).
My question is should I keep the $30,000, pay my bills normally and continue to stockpile cash/retirement, or should I cut a check for the car in Dec. 2013, leaving myself with 5000-10000 cash depending on my 2013 income varying and then start fresh with no debt?
If it helps also, I'm 24 years old and am living pretty much at cost of what I can do, working 75 hours a week in two jobs. Monthly expenses, including the student loan payments I'm making right now is roughly $2500-2700 a month while I take in $4800-5300 a month (about a $2500/mo average left over after bills).
My goal is to move apartments in Jan. 2014 which would increase my housing cost from 750 to 1200-1800 depending on a roommate situation. The increase will be offset by an income increase and the removal of my student loans and will still allow for me to build wealth in both cash and retirement. Obviously with the car paid off, I can do even more, but with it not, I'll have a lot more of a cushion (again, about $20,000 - $30,000 a year).
Any feedback would be awesome!
Comment