My personal opinion is that the answer is easy. If you make 57k and your bills are 14k, you should have your school loans paid off in under a year. Then you will have no debt and can save up for a used car paying cash.

First thing I'd do is get the book "The Total Money Makeover", by Dave Ramsey

I get nothing for my recommendation, you can check the book out at the library if you wish.

If the author were in the room right now, he'd give you the following advice:

1.Save up a $1000 emergency fund in a regular savings account. NOT A CD, it must be liquid and is meant only for emergencies.

2.Pay off your student loan in 7 months. That's your 28000 balance / 4000 extra income per month.

3.Protect yourself from job loss... which means FULLY funding your emergency fund. This means saving up 6 months worth of expenses. This will take you 2 months. ($1400 expenses * 6 months = $8400) / ($4000 extra cash) = 2.1 months

4.Start saving for retirement .. by this point you may have met the qualifications for your 401k. Put 15% in to start with. Put the rest into a savings account and start saving for a NICE, but used car. Pay CASH for it. Then save for a house.

5.Get a house with a 15 year mortgage, and pay it off as fast as you can while maintaining 15% savings in your 401k

6.Once the house is paid off, build weath for the rest of your life.


Now.. don't take my word for it.. but read it for yourself and decide if this is right for you. What I can say though.. is that you are AHEAD of the game of other people. It's not because you make $57,000. The reason you are ahead is because of the GAP between your income and your expenses.

You want to MAINTAIN that GAP by NEVER borrowing money (except for your house).

Don't EVER get a credit card. Don't EVER finance a car.

If you go against the "NORM" in this way.. I guarantee that you will be a debt-free millionaire before you reach 40 years old.


For me.. I started a little late. I'm 33 years old now, and I won't be a millionare until 45-50. By the way, my day job has a lower salary that yours..

How do I know that we'll be millionaires.. It's just math pure and simple.

Read the book... and marry someone who won't spend all your money!

Sorry Dparz30, I missed that part.

Since you already have the savings part covered. Park that in a liquid interest bearing account, then start working on your loan.

At the rate you're going, you'll have the loan paid off and be driving a NICE, but used car, paid for in CASH, in under a year.

Good Luck!

If you were my client, I would tell you to save about $3-6,000 for the car that may become a necessity sooner than you think. After that, make sure that all of your normal living expenses are paid for and start a small emergency fund so that you can have a safety net for unexpected emergencies. That said...use the rest of the money to pay off your student loan debt as fast as possible. If you can live you life at the young age that you are, with no debt, you will be one in a million of people that get the luxury to do so.

Financially speaking, you are doing great compared to your peers all across the country. Good luck with everything and I hope this helps.