My blog’s current state has it’s main focus on the ‘debt ‘part of debt to dreams, but I do hope that in the near future the focus shifts more towards of the ‘dreams’ of early retirement. That doesn’t mean that I haven’t been working on that second part of that at all, in fact it is quite the opposite. Even as my debt takes priority, I’m still working on building up those retirement accounts as soon as possible. Just like with my debt, it’s a slow and steady pace that is hopefully building momentum to hopefully increase that speed. Continue reading
I figured that another good way to start off would be to currently say what I actually DO have, maybe also a slightly more positive topic for myself too! In high school and throughout college, I tried to save as much as possible. I paid off my car in full and I have never carried a balance on my credit card. I now own a rewards credit car that I put almost everything on except for gas. That card gets fully paid off whenever my bill is due so that I don’t have to pay any interest. Might as well take advantage of that 1% cashback, right?
Other than my massive student loans, here is what I current have in my bank:
- Checking Account: $2,000
- Savings Account: $22,000
- CD: $550
Now I know that most people reading this are probably going straight to my savings account and saying that I have way too much in there, and now I would fully agree with you. I only have an interest rate of 0.90% in my savings account. I plan on lowering my emergency fund to $15,000 and maybe even $10,000 while I am still living at home.
Next month for my loan payment I fully plan on paying off ‘Private 3’ loan for $3,067 @ 7.92% on top of making my regular loan payments for the month. This will bring my emergency fund down to $19,000 which I’m still perfectly fine with at this time.
For retirement savings I currently have:
Employer 401k: $3,186
Roth IRA: $5,548
I’m currently contributing 6% to my Employer 401k, and they match with 3% – the max matching I can get at 50% of employee contribution up to 6%. I’ll take that free 3% and I’m fine with my 6% contribution while I’m still paying off my loans. I maxed out my Roth IRA this year, pulling from my savings account. The money probably would have been better off going into a loan because that’s guaranteed making 7.92% interest while the chances of my Roth doing better than that are pretty low. Maybe it’s just the psychological aspect of starting to save that I enjoy though, similar to to my problem of keeping too large of an emergency fund for my current situation.