So, now for my plan and progress.
My plan with my dad to beat student loans:
Current total loans: $41,000 (@7.5%)
We are emptying my college fund (~$26,500) into my loans in July.
He contributes $15k/year for the next 5 years (about 10% of his gross income). TOTAL: $90k
I contribute $35k over the next 5-6 years.
This covers both loan pay-back/interest and new tuition costs. It's much more in depth than this, but for the purposes of this forum that's mostly what you need to know.
Remember how I said I wasn't a good saver before? All this GRS education has TOTALLY changed that. Automated savings have become my best friend. Here's a better look at my situation.
Currently I work two jobs:
-my co-op (which is 6 months long, but ends June 30) 30 hours/week @ $12/hr
-my job on campus (not
work-study), where I just got promoted to Supervisor ($12.53/hr). I will work here for the rest of my time in college (3 more years-- 4 semesters and 2 co-ops-- it's a 5 year school). Right now I only work 8hrs a week, but it's extremely flexible and I'll be working more like 30hrs/week in the fall.
I've been netting about $365/week, BUT that was when I was making $8.40 an hour before I got promoted. This Friday I'll get my first paycheck with my new wage, which will probably be around $400 total when added to my co-op's paycheck.
$365/weekCollege loan payback
(Goal: $3,000 by 7/1): $215/week2-month Summer savings
(Goal: $1,000-$1,200 by 7/1): $50/week (used to be $75, then $60-- I've scaled down as I've neared my goal)Gas:
$75/week (ONLY FOR JUNE)Checking
(to spend/save/do whatever with): Remainder, usually ~ $25
I've been going home (4.5 hour drive each way) every weekend in June for a long list of reasons, but that costs me about $75 in gas each week, but I'll no longer have this cost after June. Also, sometimes my boyfriend will fill up my tank since normally he'd be coming to see me some weekends, so the gas money goes to savings. My car is totaled (only cosmetic damage though) '96 Chevy Corisca (now with ~73,000 miles on it) that I got for free when my Grandma didn't need it anymore 3 years ago. It's running great, the mpg is about 20-23 (ehh), and when it dies I probably will hold off on a car for awhile and then buy a used hybrid car. That shouldn't be for a few years though.
Here's a look at my current progress on my goals:
Loan savings: $2,485/$3,100
Summer savings: $1,050/$1,000-$1,200
Checking account: $150 (this is low due to 2 smaller paychecks and a recent weekend vacation).
Also, I just won a $400 scholarship from my church!!
So come July (when I get home), here's what the student loan stuff will look like:
Loan (starting): $41,000 (@7.5%)
College account: $26,500
My contribution: $3,100
My scholarship: $400
Loan (ending): $11,000
Here's what my portion of student tuition/loan debt will look like (this is what I will owe over the next 5-6 years):
NOW for a few thoughts on the $75,000 inheritance: $5,000 to a ROTH IRA
- life cycle fund through Vanguard$20,000 to keep in savings @1.5%
- may eventually buy CD when rates go up, also may help max out ROTH in the next couple years before I earn salary.$45,000 in index funds
(and maybe a mutual fund or two) through Vanguard.$5,000 to eventually spend
- likely some on a vacation to Scotland with my sister next summer. My mom always wanted to go but never got to. I'm also a photographer (forgot to mention I often make money from that as well), and some of this may HELP fund a portion of my next camera when the upgraded version (with video, thank god!) comes out. Not many people know that cameras actually have lifespans (measured in shutter clicks, basically), but mine has far exceeded the 150,000 click lifespan, and unfortunately the under-performance is showing, which affects my hobby and client work.
I hope this was all clear... I know there's a lot of information and it's a bit scattered! I'm happy to answer any questions, and I'm very open to hearing any suggestions or advice!
Thanks for reading!