22M, graduating and starting work in around a month. Moving + putting money down on a car is going to basically leave me with no savings; the good news is I’ll get an $8k bonus with my first check, and I’ll be making $6300/mo take home. I’ll be paying 1900/mo rent in LA. I’d like to get rid of my debt as fast as possible (planning on getting a $17kish Civic), I might have like 10k owed for a car and 14k for student loans, both around 6-7%. However I also want to build my emergency fund for peace of mind.
I’d like to pay off the car and loans aggressively, probably making double or triple payments on the car until it’s paid, then attacking student loans. My questions is what’s the most optimal breakdown if I also want to save cash for emergency fund, plus maxing Roth? Should I do an even split so I’m not cash poor, or can I prioritize being debt free ASAP?
After fixed expenses (rent, Roth max, car insurance, phone, gas, utilities), I estimate I have $3k monthly to put toward debt, savings, plus all other personal stuff.
First money moves when starting first engineering job; no savings + some debt
byu/mumbomode inpersonalfinance
Posted by mumbomode