#WeekendHelp #VictoryThread #June21
Personal Finance Questions and Success Stories for the Week of June 21, 2024
Seeking Financial Help and Guidance
If you have any personal finance questions or need guidance on your financial situation, this is the perfect thread for you. Whether it’s budgeting, investing, saving for retirement, or any other financial topic, the supportive community at r/personalfinance is here to help.
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Celebrating Financial Victories
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a huge accomplishment i made:
i ended up in the ER twice this semester for various health problems and racked up a 18.6k medical debt (20 year old college student lol). after half a year of negotiating, fighting, insurance sending stuff back and forth, etc, i got the 18.6k reduced to 1.5k!
not only that, i applied to and received an emergency grant from my school to pay off that bill, and i paid everything off without spending a single penny of my own money! technically i have the emergency funds to pay off the 1.5k but my emergency fund isn’t huge; it would’ve been a good chunk of my money, especially since i took almost 2k out to pay my taxes a couple of months ago.
this feels like a huge win because not only am i a poor first-gen immigrant on a full-ride to school, both times i went to the ER, i almost didn’t go despite serious worries for my health. i was sure i wouldn’t be able to afford the bills and wanted to ride out the terrible pain, but my friends managed to convince me it’s better than i live and pay than die.
I don’t really feel this is appropriate to share with most people in my personal like but this is a huge accomplishment I’ve been working toward my whole career; I crossed $1,000,000 net worth sometimes in June, just reviewed my roll-up and am at $1,021,525.62.
It’s about $350k in 401k, $50k cash, and $600k in my personal brokerage accounts, with no debt. I’ve been maxing 401k for several years now and almost all of my personal brokerage is $SPY, I also have another approx $500k of RSUs that aren’t vested yet but don’t count those as I haven’t got them vested yet.
I just wanted to share as this is such a huge personal milestone 😀
Throwaway account for obvious reasons…
There is a high likelihood I will be receiving an additional $200k taxable income on top of my salary this year. 29 years old and still living at home (not for much longer).
My new/current income approx $150k/yr gross and that will continue steadily.
Already maxing out my Roth and have about $40k between cash reserves and investments. I’m a 1099 employee and take advantage of additional write downs each year on my taxes.
My two major fixed expenses each month are student loans: $483/mo and vehicle $516/mo (will own vehicle outright in 5 years)
Student loan balance: $61k at 4.62% fixed
Car loan balance: $27k at 4.75% fixed
Let’s figure I walk away with an additional $120k net after taxes. My ultimate goal is to take the next step in my life and get my own place. I’m not against the idea of renting (approx $3,100/mo in my area plus utilities) for a few years because I will be in a position earning around $600k by then.
If I were to buy a house right now, I realistically I would want a $700k or so property just based on my own tastes/needs.
Should I use that ~$120k to erase the student loan and perhaps use the additional $60k to more or less cover 2 years of rent? Keep all the loans (because I can afford to pay them as is now) and use the full amount as a down payment on a home?
This is not income I was anticipating this year so in my head, it’s basically “free” money to me. Just looking for any thoughts/ideas on the best way to use it