I am currently a teacher trying to save money, while also paying off credit card debt and student loans. How can I better budget and save my money?
Biweekly salary: $1,900
Rent: $750 (split between partner)
Car insurance: $170 (monthly)
Student loans: $257
Electric: approx $118 (monthly)
Groceries: $120 (weekly)
Credit card debt: $6,000+
How much should I be putting towards both my credit card and savings monthly? I’d like to pay off my card as soon as possible, as I am trying to save up for a new car and I don’t want my credit score to be affected.
How can I better save my money while also paying off debt?
byu/Cool-beans95 inpersonalfinance
Posted by Cool-beans95
6 Comments
Sounds like you are asking about a framework for what to do with money.
Start with reviewing the Prime Directive in the PF Wiki. It will answer your question and many other questions you didn’t realize you should be asking.
* https://www.reddit.com//r/personalfinance/wiki/commontopics
If the debt is higher than 8% it’s optimal to pay it down as quickly as possible
“As quickly as possible” depends on all your other goals and needs.
Lots of missing info here.
Is your salary figure gross or net? Are contributing to a 401k or Roth?
Rent 750 split between partner – meaning what, the $750 is split between the two of you so you pay 375, or rent is $1500 and 750 is your portion? (These days I’m assuming the latter)
Those are your only bills? No cable, internet, cell phone, car payment, gas/oil, water, trash, etc?
Is the stated biweekly salary gross or net? Your monthly expenses is ~$1415, where is the extra ~$2385 going? I hope it is to the CC debt and not savings.
I’m sorry to say that you can’t really afford a car with $6k in credit card debt. Pay that off asap, and then save for the car with all the money you will have once The cards are paid off
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