Graduated Learning: Life after College

I got my degree, I got a job…now what?

Next step on the personal finance path October 27, 2010

Filed under: Personal Finance,Uncategorized — Stephanie @ 11:31 pm
Tags: ,

So, now that I’ve paid off my car loan, it’s time to re-examine my personal finance goals.

First, a fun fact:  When you pay off your car loan they send you the title to your car.  So I got my title in the mail last Thursday!  Even funner fact:  my roommate got her title in the mail the same day!  What are the odds?

My next debt to tackle:  Student loans.

Changes I plan on making to my finances:

Every month, I had paid my car loan with an automatic transfer from my ING checking account.  I’d also transfer a slightly higher amount into that ING checking account every month.  So I’d be slowly stashing a little bit of extra money into savings.  Now that my loan is paid off, I’m going to set the monthly transfer to go to my Down Payment Fund instead.  This means I earn a little bit extra interest-wise.  Plus I’m still keeping the money out of my main spending account.

As is customary in personal finance, I’m now going to pay the amount I paid on my loan each month towards my student loans.

Overall, this means that a different account gets my monthly savings transfer, and a different account gets my monthly loan payment.

Technically, all the money will be leaving my main checking account now (just the way things are in my current system).  But this means I’m still putting money towards a down payment, while paying extra towards my student loans.

Is this the wrong approach?  Should I be working harder to just eliminate my student debt instead of saving for a house?


4 Responses to “Next step on the personal finance path”

  1. I’ve just discovered your blog today, and so far I’m enjoying!!

    I was in a similar circumstance as you are. What I considered was that when I go to purchase a home the bank will consider all forms of debt I have, including student debt and base the amount of the loan and the interest rate on that. I want to be able to pay the least amount of interest as possible. If I’d gone to buy the house while still having school debt then I’d be paying interest and principle for the student loan AND a higher interest rate for the mortgage.

    I went with the school loan payoff before I started saving aggressively for a house fund. In about 2.5 years I’ve paid off the $33K in student loans and right now have $21K in my house fund, plus a small Emergency Fund.

    Hope that helps!


    • Stephanie Says:

      I never really thought about it that way. But now it’s really obvious: lenders would be much more willing to lend to people with less debt. Maybe I will have to work even harder paying off my loans before saving too much more money.

      By the way, I’m really impressed with how much you’ve paid down your student loans and stored away for a house fund! Keep up the awesome work!


  2. Alaina Says:

    Hey there, just ran across your blog today and really enjoyed it. Keep up the good work.


  3. […] a house, so I do want to have money for a down payment.  But as Big City Beer Budget pointed out here, banks will be looking at your total financial picture when considering you for a mortgage, so the […]


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s