1) beef up emergency savings - you can't really have too much in this area
2) pay a little extra on one of the student loans - is it possible to consolidate and refinance at a lower rate? - I did that once years ago
3) save some for upcoming new apartment and moving costs - this is something you want to do and don't want to go into debt doing it, so set some money aside for it
You could split it however you like, but I think if you split it into even thirds, you would accomplish all of these goals in a short time.
I agree with crazyliblady, beefing up your emergency savings should be priority. Having the peace of mind is really priceless and will make you feel empowered. It would be nice if you could get rid of some of the smaller student loans and then of course getting your own place.
1) I noticed that even though you are living with your parents, you are not paying any rent or utilities. When you do move out on your own, you will have to pay those. You may want to consider creating a new budget when you do so.
2) Another thing is after you finish saving your money for moving to an apartment and also finish beefing up your savings, start really hitting your debt hard with extra payments. If you can get one or more of those debts paid off, it will not be so difficult to afford living on your own.
I'd probably, save for the emergency/savings fund. First. ($3850 to go?)
I would probably then knock out the 3 smallest student loans. The 6.8% one and the variable ones. It's not that it will make the hugest difference in the long run, BUT, I think it would simplify things quite a bit. (Or, see if you can consolidate, as mentioned).
I would, in the meantime, set aside money for a car. Maybe $200-$300/month, after you save the $3850. The rest can go to loans, and you could clear a bunch out within a year.
All that said, I wouldn't blame you for skipping the loan repayments and hitting those harder when you have more income. I am assuming you are saving something for retirement. Something, anything. $50/month would be a start.
I think the correct answer is within yourself. It sounds like to really afford the rent you would need rent + transportation, so maybe rent beats out second car by a nose...but only by a nose. Second car also means more gas, and more insurance. Probably would need to budget for that.
Any possibility of arranging to "mock pay" rent? Would your parents be amendable for you to pay them rent and have them set it up into escrow... more savings in other words, and you get used to paying rent, so its not a shock when you do so for real. It shows to your parents that you are serious in wanting a place of your own. Right now I see a status quo budget, where you base things on staying with your parents. I'm a little old school and a product of a dysfunctional family - for me, getting out of 'rents house was number 1 goal. Above discretionary monthly funds.
Can you tell us a bit more about the student loans - are they private, or backed by the government or consolidated in some way? From the info you've given its hard to tell whether they are the okay type or the nasty type. If they are the nasty type, they definitely go ahead of owning house and Sochi.
July 1st, 2010 at 02:08 am 1277950095
1) beef up emergency savings - you can't really have too much in this area
2) pay a little extra on one of the student loans - is it possible to consolidate and refinance at a lower rate? - I did that once years ago
3) save some for upcoming new apartment and moving costs - this is something you want to do and don't want to go into debt doing it, so set some money aside for it
You could split it however you like, but I think if you split it into even thirds, you would accomplish all of these goals in a short time.
July 1st, 2010 at 02:42 am 1277952140
I agree with crazyliblady, beefing up your emergency savings should be priority. Having the peace of mind is really priceless and will make you feel empowered. It would be nice if you could get rid of some of the smaller student loans and then of course getting your own place.
July 1st, 2010 at 03:10 am 1277953821
1) I noticed that even though you are living with your parents, you are not paying any rent or utilities. When you do move out on your own, you will have to pay those. You may want to consider creating a new budget when you do so.
2) Another thing is after you finish saving your money for moving to an apartment and also finish beefing up your savings, start really hitting your debt hard with extra payments. If you can get one or more of those debts paid off, it will not be so difficult to afford living on your own.
July 1st, 2010 at 06:01 pm 1278007285
I would probably then knock out the 3 smallest student loans. The 6.8% one and the variable ones. It's not that it will make the hugest difference in the long run, BUT, I think it would simplify things quite a bit. (Or, see if you can consolidate, as mentioned).
I would, in the meantime, set aside money for a car. Maybe $200-$300/month, after you save the $3850. The rest can go to loans, and you could clear a bunch out within a year.
All that said, I wouldn't blame you for skipping the loan repayments and hitting those harder when you have more income. I am assuming you are saving something for retirement. Something, anything. $50/month would be a start.
July 1st, 2010 at 06:17 pm 1278008271
Any possibility of arranging to "mock pay" rent? Would your parents be amendable for you to pay them rent and have them set it up into escrow... more savings in other words, and you get used to paying rent, so its not a shock when you do so for real. It shows to your parents that you are serious in wanting a place of your own. Right now I see a status quo budget, where you base things on staying with your parents. I'm a little old school and a product of a dysfunctional family
Can you tell us a bit more about the student loans - are they private, or backed by the government or consolidated in some way? From the info you've given its hard to tell whether they are the okay type or the nasty type. If they are the nasty type, they definitely go ahead of owning house and Sochi.