Anonymous User wrote:Can anyone help me assess a repayment strategy budget? Plz be nice
I'm at H so I have LIPP as a possibility (but don't think this will come into play?) so I'm not sure if I should refi or keep the lipp/federal protection. I'm headed to a tertiary market in SoCal(OC/SD). Here's my breakdown:
Currently a 2L, and expecting total debt at grad of around 190k at rates between 6.21 and 7.21% for most of the loans.
170,000 starting (including bonus)
-Expected taxes(got this from CA income tax calculator):
Total Income Taxes $58,610
Fixed Expenses/month (estimates):
Loan Payments: 4,000 (too ambitious?)
Health Insurance: 250
Total variable expense budget year/month: 34,590/2882.50 (better standard of living than I'm used to)
I know I should save up a rainy day fund, but am not sure how much that should be or how best to do so. I am very interested in paying off my loans within 5 years if possible, and I grew up lower middle class so I have no qualms about living relatively modestly. I also figure that as I get paid more each year I can adjust my payments and living expenses appropriately so that the financial burden becomes easier to bear over time.
Please let me know if I'm forgetting anything in my calculations and please offer any advice you see fit. No, I cannot travel back in time and not go to law school. I am actually very happy with my outcome so far. The 190k number is a high estimate and I hope to come out around 5k below that but for the sake of this budget I'd rather estimate up. Thanks!!!
Are you planning this as if you were going to biglaw? If so, I think your underestimating your health insurance cost.
Also, you might be underestimating on rent and utilities as well.
You absolutely need to save right away. Firms can push you out within your first year for business reasons. First years are the first to go during layoffs. If something were to happen, you would not be happy not having anything on savings.