Hello everyone. I posted last year in this sub to see if I was on the right track/if people had any opinions on my decision making. Here is a quick summary of where I'm at:
I've got 100k in private student loans now at 5.15% (refinanced from 9.5% to 5.5% to now 5.1%) with a $1300 ($1175 + my extra $125 contribution) monthly payment (10 year loan, used to be 15). I make about 90-100k a year right out of college (chemical engineer), have a fully paid off car, and pay just less than $1000 for rent + utilities. I started working August 2024. My expenses are pretty low and I budget my money to the dollar on a google sheet. I max out my Roth IRA every year and contribute to my 401k up to company match, and have completed my emergency fund of 8k.
I've got extra money every month but I use it for investing/other expenses to enjoy life. I had the mindset previously of wanting to pay off my debt quickly, but then realized that I don't really have to in my scenario. I've traveled a bunch last year (trips including Japan, Florida, Montana) and have never had an issue with not having enough money to pay my monthly bills.
Am I making the right decision to enjoy life and not aggressively pay off my debt? I need someone to tell me I'm not going crazy to be honest.
1 year update – Am I still making the right decision?
byu/WorriedAside8592 inStudentLoans
Posted by WorriedAside8592
2 Comments
I would pivot a bit of your extra income to paying off debt faster. However if you are not adding more cc debt and are budgeting well it’s okay. I would try to turn that extra $125 a month to an extra 4-500
I think you should continue to enjoy life but still throw a bit of the extra money towards loans. It doesn’t have to be an all of nothing mentality!
The sooner you bring down the loans the sooner you’ll have 1,300 for whatever you want.