So, I started my new job at RaceTrac’s Store Support Center. I am the accountant for cigarettes and OTP (Other Tobacco Products), on their A/R desk. So far the job has been a tremendous learning opportunity. I have gotten to apply my education in the real world, making my first journal entries… How exciting. Not only has the job been a great learning opportunity, but it has also provided a great opportunity to move towards financial independence.
Being fresh out of my masters degree I owe approximately $38,000 in student loans I currently have a liquid net worth of about ($30,300). My goal is to get to a big $0 in Net worth in the next 12 months. I plan on doing this through a combination of savings and loan prepayments. I have signed up for auto debit on the loans that have a benefit for auto debit. One servicer does not have an auto debit option.
The $4000 loan is a Perkins loan and doesn’t begin repayment till 6/15/13. I plan on using the debt snowball method for my prepayment methodology. I will use the $42.43 towards the smallest loan balances until the Perkins Loan comes out of deferment. I am currently budgeting $440/Month for student loans. My take home pay is $2722/Month. I tithe and pay myself first which comes out to $272/Month, Insurance $75/Month. I put $436/Month aside for rent and groceries, this goes into a joint account because the GF and I live together and split these expenses. $112/Month to my parents for cell phone and to hold my room… I will live there when my GF is deployed to Afghanistan next year and $400/ Month for gas. This leaves $715 each month for savings and loan prepayments.
So, I want to use the $715/month to build my emergency fund to $4400 which is currently at $1900, pay down my loans, contribute to my Roth, and build my prosper portfolio. I don’t know exactly how to break that down since they are competing priorities and all work towards my goal of breaking even on my net worth.There is another wrench in this goal of getting to the $0 net worth I want to buy an engagement ring and get married to the GF before her deployment.
Some other goals is to get the full match on my $401K when I become eligible 7/1/2013. I plan on taking their Roth 401K option. Also, I would like to save for a down payment and buy a duplex to live in and rent, so that I can Start Building More Passive Income.
|Where I am today||Where I want to be in 1 year|
|Net Worth||($30,317.24)||Net Worth||$0|
|Student Loans||$38,167.25||Student Loans||$16,400|