Loan Payment or Investment Portfolio

Posted on reddit.com in r/personalfinance by u/ECO_nomics on 9/27/2018

I currently make $45,000 salary ($3,750/month) with 7.5% (3% match) going to my SIMPLE IRA. I am set for a pay increase to roughly about $55,000 to $60,000 in the next couple of months. I have $7,400 (3.96%) left on a student loan and $9,000 (2.19%) on my car loan. I currently live in my parents' apartment (close to work and travel for work often) and don't pay rent, utilities, and pay about $200 a month on food. I currently have $3,000 in savings (just spent $1,200 of my savings on much needed golf clubs as I am in sales and golf with clients) and put $500 in my savings account every month.

$3,750
- $281.25 (SIMPLE)
- $500 (savings)
- $200 (food)
- $332.00 (car payment)
- $500 (student loans)
- $132 (insurance)
- $300 (gas)
- $79 (climbing gym)
- $400 (entertainment, golf, hockey, rock climbing, etc.)
$1,025.25

I have spend the last year traveling, partying with friends, extending business trips to personal trips, etc. (Recent grad), and am now getting my personal finances in check.

I have been looking at low-risk ETFs, mutual funds, and other low-risk investment avenues for the remainder of my income. I have also been considering paying off all of my debt while I have little over-head costs.

I would greatly appreciate any advice!

Comments

  1. Playing "what if?" with your future cash flow is much easier when you can SEE your future cash flow. Download the program and build a complete picture of your money for now plus the next 12 months. With a clear view of where you are headed, being able to see the impact of changes BEFORE you make a change is a huge advantage.

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