Johann wrote: Anonymous User wrote: Johann wrote:
Anonymous User wrote:$68K salary, $110K debt. How much should I expect my payments to be under REPAYE or IBR? $500-600 range?
At this income level, it's SUPER IMPORTSNT to be smart with your pretax planning. Can basically create free money if you are smart and fiscally responsible. Search posts by avbucks. He's doing an IBR on a roughly similar income and has it all figured out.
I looked through his posts and it looks like maxing out my 401K is the main thing. What did you mean by your "free money" comment?
I mean if your loan payment at 50k income is 350/month and you can move 10k of income over to 401k in order to pay 1k less in student loans you've created 1k of money. You've moved 1k that you would be paying to the government to your future selfs pocket.
You can also do the same with HSA if you have yearly contact costs or whatever.
(Edited because wrong info)
Since you're posting anonymous, just out more of your details and a viable benefits and I'll try to crest an excel and paste in this thread as an example this weekend.
If you provide your state and a rough monthly budget of how much money you actually need/use, we can get pretty specific. Details about a significant other and their income could also be useful (i.e. Make her the cash holder and you be the retirement/deferred income account).
Income: $68K base, $74K all-in including bonus. In another year to year and a half I'll be at $78-82K base. Don't want to get too specific. Currently putting 10% of income into 401K. Take home pay each month is around $3900. Not married, but fiancé makes $32K with a take home income of $1,900.
Renting at $1,400 a month in TX. (Austin/Dallas/Houston). Saving for a house. I'm 25. A solid house in my area (that's less than 30 minutes to work) is somewhere in the range of $275-300K, but I'm at least 2-3 years away from buying. I'll be in TX for the long haul.
Other expenses: Car - $350, Utilities - $250. No CC debt. Rent, car payment and utilities are my only true fixed expenses at the moment, parents cover car insurance and cell phone.
I spend $55/week on lunch, $25-40/week on parking or public transit and less than $15 per week on gas since I live 3 miles from work.
My fiancée has a $400/month car payment, $200 per month in CC payments, $100 cell bill, $100 insurance. She works for a non-profit but will probably go teach in another year or so which should bump her income up to $48-50K.