Primary Focus: Where to Direct my Money?

[nicksaiz65]

I was chatting with a member about this topic in the DMs, but I think it would be good to make a separate thread on this topic as well.

I currently work as a software engineer at a smaller firm: in a smaller town. I’m not really super concerned about being laid off due to cuts, since we are expanding. I even worked one of the job fairs where we were recruiting new engineers.

I’m also about $25,000 in student debt from college.

Though I wouldn’t dare move to a big city and try to work at a big company until I have a huge emergency fund, enough to last me for years. The most dangerous part about working in big tech corporate is the massive layoffs without warning. I want a fatass emergency fund lol. A fund like that, plus keeping my interview skills sharp at all times, basically makes me immune to being fired if that makes sense. I call it my “Elon/Zuckerberg proof” fund because of the mass layoffs they’ve done lol.

I want an emergency fund so fat that I could even take a year off working and do music full time for a year if I wanted, then shift back into finding a new job without any stress whatsoever.

I also need to pay off my student debt so that my paycheck isn’t being cut into by Sallie Mae every month. That way I’m not struggling to pay rent in a big city. It’s also hard to build wealth with all these payments coming out. The only recurring payments I want are rent and a car payment.

I partition my money into different categories every time I get paid, as part of my budget. Would it make more sense to put more focus on(money into) building up my “Elon/Zuckerberg proof fund” bigger or would it be better to attack these Sallie Mae loans more aggressively, to get out of debt as fast as possible?

Of course, I can do both. Was just wondering which one takes priority.

 

[2Rocky]

This guy has a good start on eliminating debt and creating an emergency fund. You can get a lot of value out of his blogs for free but his books are good too

A Proven Plan for Financial Success | RamseySolutions.com

Learn to budget, beat debt, save and invest with Ramsey Solutions, founded by Dave Ramsey, bestselling author, radio host and America’s trusted voice on money.

www.ramseysolutions.com

 

[nicksaiz65]

This guy has a good start on eliminating debt and creating an emergency fund. You can get a lot of value out of his blogs for free but his books are good too

A Proven Plan for Financial Success | RamseySolutions.com

Learn to budget, beat debt, save and invest with Ramsey Solutions, founded by Dave Ramsey, bestselling author, radio host and America’s trusted voice on money.

www.ramseysolutions.com

His stuff is awesome. I budget using his envelope system. It’s the only thing that keeps me from going on a spending binge lol

 

[member160292]

When I was your age, OP, I moved out of a rural county to a big city. I had $4k in net assets, burned through it in less than a year while making $25k in 2014. I remember sitting on the front porch of my sh!tty shared rental with $200 in my bank account, contemplating if I should admit failure and move back in with my parents.

That was the turning point in my life. The moment you have nothing left to lose is when you hold yourself accountable for your life’s path. You’re young enough to take risks, just do it. You will rack your brain and find a way.

Less than 10 years later, I’m having more disposable income than what I know what to do with it. I’m smart about finances though, when you’ve been broke before you tend to be wise with your money

Take the next leap OP!

 

[nicksaiz65]

When I was your age, OP, I moved out of a rural county to a big city. I had $4k in net assets, burned through it in less than a year while making $25k in 2014. I remember sitting on the front porch of my sh!tty shared rental with $200 in my bank account, contemplating if I should admit failure and move back in with my parents.

That was the turning point in my life. The moment you have nothing left to lose is when you hold yourself accountable for your life’s path. You’re young enough to take risks, just do it. You will rack your brain and find a way.

Less than 10 years later, I’m having more disposable income than what I know what to do with it. I’m smart about finances though, when you’ve been broke before you tend to be wise with your money

Take the next leap OP!

I’m in the process of auditioning for a second job as we speak. If this works out for me, it’s very likely that I could live in a bigger city within a few months.

The hard part will be preparing for said audition while working a corporate ass job lol…