🔺 r/personalfinanceuant_man18·69 days ago
Large increase in Salary, new challenges
As the title suggests, I went from making 55k last year to 72k this year (up to 86k w full bonus) due to a promotion. Currently, I'm saving avout 20% of my gross pay, but here is the dilemma. I still live with my parents, and while I plan on giving them a good chunk of my pay, after my savings and expenses I still have about $900 left over monthly. Very long story short, I would like to put that extra money towards paying off my car ($638 minimum payment, $17,800 left on the loan) within a year v.s roughly 3 years without the extra payments. The goal is to be able to move out of the house after this is done, as it will free up a significant amount of money and I have my student loans I will start paying off in October. While I know it's not the best move in terms of long term growth, does my 20% gross savings rate make up for it? Also, I have 6 months worth of living expenses in an emergency fund. Due to the nature of my job before the promotion, this was a necessity. Now, however, I am salary and have very comfortable job stability and security. Since I don't pay rent, my emergency fund is around $7,700. So my other question is, would it be wise to keep this 6 months of living exp…