Tuesday, October 21, 2008

How will I use my third paycheck???

I have decided to follow Single Ma's advice and split my third paycheck in half. Half will go to pay off my small student loan balance and the other half will go to beef up my emergency fund a little more. I also get paid from my second job this week and will be funneling all of that money to my student loan balance. If all works out well I should have that paid off next month, around the time of my 25th birthday.

I also received a $4250 loan forgiveness for my teaching obligation and immediately applied that to my next smallest student loan balance which was at $5226.00. I also have been paying $70.00 a month on it. Needless to say the balance is under $800.00. I am hoping to have that paid off in November as well.

The next loan that I have to tackle is my Capital One car loan that is at a very high 16.64% interest rate. I hope to have that paid off by March or April. As it stands right now the balance is at roughly $6476.73.

Finally I am debating on whether to stop contributing to my 403B for right now or not. It offers no match and I put $220.00 a month into it pretax. Right now I think I should focus on paying of debt and increasing emergency savings.... what do you think?

until next time, think prosperous thoughts


1 comment:

oldwhiteandpoor said...

Since there's no match, using the money to pay off debt and reinforce the emergency fund makes lots of sense.