How fast can you REALLY pay your loans? Forum

[09042014]

What would it take for you to do 5k a month?

98k is

8k a month.

(1650 Rent)

(400 Utilities)

(100 for metro)

= 5860 and that's without spending a dime on anything else.

(2000 food, drinks, and entertainment)

(1000 random spending)
= 2860 is a pretty good realistic number.

This is why people that make 6-figures live paycheck to paycheck. Spending 2k a month on food, drink, and entertainment is insane, even in DC.

He said he likes going out and drinking. In DC that adds up real quick. A night out with the boys from the office costs at least 100 bucks. 200 if you aren't careful. You aren't living in Charlottesville anyone where you call can pound down Jim Beam at someone's partyhouse and go off for 15 dollars a night.

And that includes everyday food costs. 12 dollars a lunch (which is what a shitty sandwhich, chips and soup costs at a deli) for 23 days a week is nearly 300 bucks.

3k a month on spending is high, but I'm sure it's way way more accurate that 860 which is what he'd need to do to pay off 5k a month.

I'm not some crazy spendaholic. I'm paying about 7k a month off in DC suburbs. But that's because I'm putting almost my entire check into it.

[Law Student 2848]

My wife and I live on about $3,500 per month and our mortgage is around $1,600, so comparable to your rent. If you are low maintenance like you say, you could easily pay off $4,500 per month, so $50,000 in the first year is doable. it all comes down to how committed you are

[09042014]

$3k /month on food, drinks, entertainment, and random spending, on top of a $2050 /month apartment (including utilities) is a little outrageous. I mean it sounds like a pretty awesome lifestyle (and I wouldn't blame you for living it), but isn't definitely not the bare essentials I want to pay my loans down/save money attitude. I lived in DC, and you can make live okay (without roommates) for around $25k /year, especially if you're willing to live in the suburbs. You can live really well for roughly $3k /month, or $36k /year. Even in the latter scenario, you'd have $62k /year that you could either invest or throw into your loans. Even factoring in a nice vacation and some other lavish expenses, you could easily have $50k /year leftover.

You cannot live "pretty well" on 3k a month if you work in big law. And I sincerely doubt you can do it period. Rents anywhere near a metro are 1500 minimum. And driving from anywhere where rents are lower than 2k takes forever. And then you'll have to pay 300 a month to park downtown.

You can't live for cheap in Leesburg and work in DC as a lawyer. You can't afford to commute 2 hours+ a day.

[09042014]

What would it take for you to do 5k a month?

98k is

8k a month.

(1650 Rent)

(400 Utilities)

(100 for metro)

= 5860 and that's without spending a dime on anything else.

(2000 food, drinks, and entertainment)

(1000 random spending)

= 2860 is a pretty good realistic number.

$2,000 per month on food, drinks and entertainment? WTF do you do on weekends? $400 for that would be plenty...

400 wouldn't even cover groceries for the month.

[Old Gregg]

The fuck are you buying?

I live pretty extravagantly, but I always budget $1,000 for food, play, drinks (basically everything that isn't rent) every month. I always end up with a $400 surplus (and these days a $600 surplus).

[exitoptions]

$2,000 per month on food, drinks and entertainment? WTF do you do on weekends? $400 for that would be plenty...

400 wouldn't even cover groceries for the month.

$400 gets you about 15 minutes at NY Dolls. M'right?

[Law Student 2848]

What would it take for you to do 5k a month?

98k is

8k a month.

(1650 Rent)

(400 Utilities)

(100 for metro)

= 5860 and that's without spending a dime on anything else.

(2000 food, drinks, and entertainment)

(1000 random spending)

= 2860 is a pretty good realistic number.

$2,000 per month on food, drinks and entertainment? WTF do you do on weekends? $400 for that would be plenty...

400 wouldn't even cover groceries for the month.

Then you're a snob that doesn't know how to live on a budget. Living in D.C. isn't THAT expensive

[Old Gregg]

Then you're a snob that doesn't know how to live on a budget. Living in D.C. isn't THAT expensive

Other possibilities:

a) Is a retard at grocery shopping.

b) Eats a lot.

[09042014]

The fuck are you buying?

I live pretty extravagantly, but I always budget $1,000 for food, play, drinks (basically everything that isn't rent) every month. I always end up with a $400 surplus (and these days a $600 surplus).

I'm not spending that much, but someone who loves to go out will. I'm a boring married guy.

Most biglaw people are barely covering the ten year payments on 200k in debt. Which what like 2500-3000?

[09042014]

2000 on food drinks and entertainment is probably high, but 1000 on everything else is probably too low.

[Law Student 2848]

Long story short... I wouldn't take any financial advice from Desert Fox.

[09042014]

Long story short... I wouldn't take any financial advice from Desert Fox.

1) You shouldn't because I can't pay off loans fast enough. I'm probably paying them faster than anyone on TLS.

2) You should avoid my advice because I have 230k left in debt in exchange for being a lawyer. LOL at me.

[Old Gregg]

1) You shouldn't because I can't pay off loans fast enough. I'm probably paying them faster than anyone on TLS.

Not gonna lie--those market shattering bonuses kept my finances, on balance, in balance.

$400 left on my loans. Struggling to decide whether to do $1 a month for 400 months or just pay it off.

[09042014]

1) You shouldn't because I can't pay off loans fast enough. I'm probably paying them faster than anyone on TLS.

Not gonna lie--those market shattering bonuses kept my finances, on balance, in balance.

$400 left on my loans. Struggling to decide whether to do $1 a month for 400 months or just pay it off.

LOL 180.

I'd definitely set up autopay for 1 dollar a month.

[Citizen Genet]

1) You shouldn't because I can't pay off loans fast enough. I'm probably paying them faster than anyone on TLS.

Not gonna lie--those market shattering bonuses kept my finances, on balance, in balance.

$400 left on my loans. Struggling to decide whether to do $1 a month for 400 months or just pay it off.

LOL 180.

I'd definitely set up autopay for 1 dollar a month.

But seriously, it'll help your credit score.

[didntgo89072014]

Lol, just lol. Have any of the DF criticizers made 160k before? No? Then how would you know better than him (who actually works in biglaw and is surrounded by big lawyers) what you are likely to spend in a month? Ever heard of lifestyle inflation? It's a lot easier to live on 20k (post tax) as a law student than 40k (post tax) working 70 hours a week and making 160k. Anyone who tells you otherwise doesn't have experience with both.

[09042014]

Poll DC junior associates and ask them how much they are paying off their loans. I bet 8/10 are paying ten year rate or less.

[Old Gregg]

Lol, just lol. Have any of the DF criticizers made 160k before? No? Then how would you know better than him (who actually works in biglaw and is surrounded by big lawyers) what you are likely to spend in a month? Ever heard of lifestyle inflation? It's a lot easier to live on 20k (post tax) as a law student than 40k (post tax) working 70 hours a week and making 160k. Anyone who tells you otherwise doesn't have experience with both.

Yes--

1) I am senior to him in biglaw.

2) I live, and have lived, in higher COL cities.

3) You're a dumbass.

[09042014]

Me and my wife spend about 5k a month. We live in the suburbs but near a metro.

[didntgo89072014]

Lol, just lol. Have any of the DF criticizers made 160k before? No? Then how would you know better than him (who actually works in biglaw and is surrounded by big lawyers) what you are likely to spend in a month? Ever heard of lifestyle inflation? It's a lot easier to live on 20k (post tax) as a law student than 40k (post tax) working 70 hours a week and making 160k. Anyone who tells you otherwise doesn't have experience with both.

Yes--

1) I am senior to him in biglaw.

2) I live, and have lived, in higher COL cities.

3) You're a dumbass.

Your frugality is admirable and you're right that I was speaking too generally but I would be shocked if you were not the exception to the rule.

[Old Gregg]

I think the key is to find a balance between having fun and not being a financial wet blanket. Some of you are eating ramen in your late twenties to get out of loan debt that much faster. That's bullshit. At the same time, don't do bottle service at jay z's clubs.

[didntgo89072014]

I agree about the balance but how in the world are you spending $500/month on food drinks and entertainment while making close to 200k? One dinner out with my girlfriend (roughly $125) would blow that up, not to mention going out for a few drinks one night a week.

[worldtraveler]

My salary makes me live like a student in DC. There is no possible way I would be happy living like this if I worked 60+ hours a week. The only reason I have extra money is that I have time to cut coupons and spend extra time commuting.

You are all delusional if you think you can have the same budget as a law student and as a lawyer. You'll need some nice clothes and the dry cleaning bills that go with them. You'll have social events at more expensive places, and it's part of your job to show up to that stuff. Your whole lifestyle changes.

Maybe you don't need as much as DF but you are not going to be living on 20k or 25k a year.

[09042014]

You are taking this a lot more literally than I meant it. Even if your spending isn't 3k, it'll be awfully close to 2k unless you are living frugally. Even then it's probably at least 1200.

Either way 5k is a pipe dream.

[Citizen Genet]

My salary makes me live like a student in DC. There is no possible way I would be happy living like this if I worked 60+ hours a week. The only reason I have extra money is that I have time to cut coupons and spend extra time commuting.

You are all delusional if you think you can have the same budget as a law student and as a lawyer. You'll need some nice clothes and the dry cleaning bills that go with them. You'll have social events at more expensive places, and it's part of your job to show up to that stuff. Your whole lifestyle changes.

Maybe you don't need as much as DF but you are not going to be living on 20k or 25k a year.

+1. There's a happy medium somewhere far below what DF proposed but above law student income.