I recently began a new job as a truck driver, and in my first year of work, I should be able to make roughly $60,000 net ($5,000 each month).
My monthly expenses come to roughly $1,300 (rent split with a roommate and living on a truck is not too expensive overall).
My sole debt is $45,000 in student loan debt.
How difficult do we believe it is to live on 25% of income for a full year while paying off debt that amounts to 75% of income?
I want to pay off this debt in a year, and I could take on a second job on the weekends if necessary.
If you’re serious about paying off your student loan, I’d suggest saving about 75% of your income and giving it two years. Divide the amount you’re saving for the student debt in half and use the other half toward increasing your emergency fund. It would be fantastic to repay your debt in two years! And it’s essential to have those savings. In the event that there are no emergencies, you may always use the funds to open an investing account or put toward a future purchase of a home or car!
However, because you aren’t accustomed to lifestyle inflation yet, saving 75% of your income is simplest early in your career. Thus, you’re in a good place with it.
However, because you aren’t accustomed to lifestyle inflation yet, saving 75% of your income is simplest early in your career. Thus, you’re in a good place with it.
Regardless of how you manage to pay it off, you will feel a great sense of accomplishment. Since my grandpa drove a truck, here’s a random tip: yoga helps prevent the physical effects of work from aging your body.
Yes, according to basic math. After costs, if you’re making $5,000 per month, you should have $3,700 remaining. 45k /3700 = 12 months and so on.
Prioritize paying off the loans with interest. If you persist, come back after a year and let us know:tada:
You could be subject to a tax bracket ranging from 27% to 32% at that wage, or possibly more given that you might be receiving income from all of the states in which you are employed. Additionally, you can be treated like a self-employed contractor and have your taxes deducted, just like a small business would. It’s possible that you will only make $3100 per year after taxes. Just be sure that before you start counting chickens, you fertilize every egg.
I agree with this. I don’t think $60k/year equates to $5k/month after taxes it’s probably less, depending on your state. If you’re an independent contractor, you might need to set aside taxes yourself.
Figure out your post-tax income and create a budget for all your expenses (Reddit has some great templates). My suggestion would be to put 70% of whatever’s left towards loans and save 30% for an emergency fund.
How you pay off the loans also matters you can apply payments to a single loan or spread them across all 12.
Once you’ve set your budget, you can see if it’s realistic to pay everything off in a year. Don’t skip the emergency fund it could cover payments if something unexpected happens.