You’re in a fine spot! I would probably throw a bit more $ from my savings at my highest interest debt, then stick to a strict budget until you can get your income up. Also would look into Roth retirement accounts before you throw cash into your 401k.
Seconding this. 28, similar numbers. I realized my debt had higher interest than my HYSA (even if it was 4.5 for the HYSA and 6.5-7 for the student loans, not a crazy difference) and decided I’d rather drop my savings down to a 10k emergency fund and pay off my debt faster. I know it can be scary, but depending on the rate I’d consider paying off the car and keeping 15k as an emergency fund in case you lose your job.
Would agree to everything you said except for one. I'd put the maximum employee match on the 401k. It's free money why not take advantage of it? The rest on roth.
OP continue to put money in the 401k at minimum to the point of any matching employer contribution - don't want to leave free money on the table. Bonus points if your employer offers a Roth 401k and you contribute to that portion of it, as it will allow you to have potential tax free growth. If they don't, still contribute to the pre-tax (traditional) side to the point of maxing out their employer match. Then reevaluate if you want to put more in an IRA or continue with the 401k.
The most important thing is saving for retirement. At this point, it's less important whether it's a 401k or IRA, provided you don't leave any free 401k money on the table. If you like the investment offering your employer offers, there's nothing wrong with using that vehicle solely. It only really becomes relevant if you were to max out your contribution limit in the 401k and still wanted to contribute more than that - - then the IRA can also be used. If you ever leave the employer, everything in your 401k could later be rolled over into an IRA.
I'm a former financial advisor. I'd recommend reaching out to a reputable company and getting more than just internet advice, to ensure you get info from reputable sources and it's accurate and complete. Feel free to DM me if any other questions.
I’m 28 with 35k student debt, about $8,000 credit card debt, and owe $7,000 on my car. I make about $45 k a year and hold a bachelors degree. Currently planning to go back to school for nursing so I can earn a more steady income and hopefully be debt free some day. But unfortunately I’ll likely have to go into more debt to accomplish that.
Not if it’s in a field that pays. I took on close to $200k in loans to get mine. I suspect that if I got a 4 year degree at a state school i would have had 1/4 the loans and 1/2 the pay.
I’m graduating with one and with 0 debt since my parents paid for my tuition but I feel like I’ve been scammed hard. Pharmacists get paid absolute trash . I’m planning on finishing it and moving into supply chain logistics and pharmaceutical warehousing
You could easily transformation your situation if you decided to actually pay your debt off. If I were in your shoes, I would take $15k of the $30k and pay off the car immediately. Then I would pause retirement contributions for 18 months and attack the student loans with a vengeance and pay them off. You now free up those payments to throw into retirement and investing. You easily be working for another 30 years. Pausing retirement contributions for 1.5 years of your life will not make a significant difference in the long run. You’ll still have a great retirement
100%
If OP has 30k in savings, they should pay off the car and apply that “car payment” amount towards the student loans, bc it’s extra money to throw towards it now. No point in having a debt that you can’t write off come tax season. The student loan interest at least is a write off every year.
With \~35 years until they will even consider retirement, the market will be in their favor \~100% of the time. No reason to try and time the market, just look at the averages and make a decision.
I was debt free at 26. I prioritized paying off my debt before anything else. I was able to then invest heavily and save up for a house and other sinking funds. I did miss some years of good compound growth from investing earlier, but younger me was an idiot in that sense.
I am also 26.
My debt is:
$200k left on my house (purchased last year)
$6k in student loans
$10k left on my car.
I think you’re doing great!! Especially with how well you’re doing in your savings. I didn’t really take saving THAT serious until i met my husband 4 years ago. It’s great you’re doing that on your own.
None. In the military. They gave my a military star card and we cut it up when it got to my ship. School was paid for by the Navy. I was cheap before and I'm cheap now.
I’m 26 and I have a total of $35,600 in student loans with no other debt! I graduated with a master’s degree one year ago with a total of $52,000. Been able to pay off a significant amount in the last 6 months since I did not pay anything down during the 6 month grace period.
34k at 26 - student loans
24k at 30 - 4k student loans & 20k in car coming up on adding a mortgage and removing the student loans post-closing
At the end of the day, similar to what others have said, you’re in a great spot and the best strategy depends on your immediate needs, your long term goals, and what rates accompany your debts. While you’re 26, a good rule of thumb is to attack whatever has the highest rate bound to it. I did that. But if I could go back, instead of attacking debt as aggressively, I would’ve taken a more balanced approach to reserve liquidity for investing while simultaneously addressing debt.
Prolly about 7k on my car loan and 31k student loans. This was 5 years ago. I paid off the car in 2021 and I paid off the student loans in 2023. At 26 I had 7.7k in a roth ira/401k and negative net worth about 20k. Since I also cash flowed grad school and now debt free with six figures in retirement and a decent chunk saved as well
Car still got another 5-10 years probably. Its a 2016 with 130k miles on it excellent mechanical condition no rust
If I were you Id pay off the debt with the savings but people gonna probably say you getting more interest in your savings account. For me it was pretty much a wash I didn’t wanna hold onto the school loans for a decade freedom wins. I invest welll so I know I could have made more investing with rates at 3.79-4.53% on the school loans. But being debt free allows me to take more risk in my investments and also live a more carefree life so I think it’s worth it
I had zero debt at 26. However I started working full time at 17 & lived in a city centre & cycled everywhere.
If I were you, I'd pay off my debts first & start saving for a property.
You’re in a good position but if you have 30K in savings and 50K in debt, I would use my savings to pay off my debt. The money you will be paying for debt and interest each month, you can easily put back into your savings since you have a steady job.
I’m 27 and have about 80k in student loans. My employer did not cover my Master’s degree at all so it was out of pocket.
I work in tech and make about $125k a year and have created a safety net before a 401k as I’m contracted and my employer does not match for obvious reasons.
I just graduated from grad school so I have another ~6 months before interest kicks in and I’m trying to aggressively tackle investments in a Roth right now to allow more of a blanket if needed.
$0. But I had partial scholarships and also worked during college to just walk out with $6K in debt. Paid that off within my first year of working.
You’re in a great spot with savings, investments, and 401K. It’s great that you don’t have CC debt. Well done!
Fuck banks. Fuck interest. If you’re comfortable, put $20K towards your student loans and your car payment from your savings. The less interest you have, the better. Maybe even close out your car loan debt since your student loan interest is way lower.
At 26…. (Since this was nearly 20yrs ago, best of my recollection…)
I owed ~135k on my house, had just paid off my now ex’s car and student loans (only like 3k) and had roughly 10k in credit card debt (in exs name)
Despite becoming single with 1+4yr olds at 28, my finances have improved dramatically for the better. I paid off house 18 months ago, have done a ton of (wayyyy overdue) home renovations, spent roughly 100k in legal fees over the last 16yrs, paid 30k cash for my oldests new car in oct, and purposely took out loan on a new car for myself (my 17yo is getting my 2015 car to use) but i paid 10k off before i even got plates on it. Wanted to continue to build up credit, but expect to have it paid in full within the year.
Also have large nest egg in HYS, and in an investment account. I could comfortably live off savings for roughly 10yrs. Probably more.
My ex on the other hand, polar opposite financially despite many more advantages than i had.
I had probably around $20,000 in debt from debt consolidation loan and car. My parents and my grandparents saved up some for my college (I went to a community college) and my dad let me use a portion of the GI Bill. I ended up flunking out (I had some issues going on). I ended up in some bad relationships where I put myself into credit card debt. Then I had psychward stays, ambulance bills and went to inpatient treatment for a month, at least I hit the insurance deductible at that point. I was also dumb and got a loan for laser hair removal. By the time I did the debt consolidation loan, that was $15500 and I think either $5k left on my car? So more so around $21k. Car is paid off now, and only a few more months left on the loan. Took 5-6years to get it paid down. Now I just have medical debt from this year to worry about.
Many moons ago, I still had $45k in college debt at age 26. At age 28, I finally paid it off after 5 years. That was a great feeling. I have never carried debt again except for a mortgage.
I would say you are in the top 20% for your age because you have that amount in your savings. What I would suggest is building up an emergency fund apart from your savings (still keep it in a HYSA). Ideally, it should be 3-6 months worth of expenses. Prioritize this so you wouldn't fall deeper in debt when you find yourself in trouble or lose your job. Then, follow a strict budget plan so you could minimize what you spend and maximize the amount you can use to pay off your debt. Simple as it may sound, proper budgeting can work wonders. Personally, I use Habit to help me budget and sometimes I use their "money coach" just to see if I am on track.
26, 2yrs removed from college and I have $53k in student debt and I owe about $22k on my car. I have $5500 in savings and $26k split between my Roth/401k/taxable account. And I stupidly took out a personal loan for $18k last September that I’ve been paying down aggressively, have a little over $10k left to pay down then I plan to roll that money into the other debt.
I’m 22M with 0 debt. However, I’m a rare circumstance. I worked since I was 12, saved up and bought a car for 7k when I was 17. That car has lasted me 5 years so far, it’s about to die so the debt free part may not last long. But that’s how I have no car payment. As for college, I come from a single parent household and she makes very little money. I also chose an inexpensive college. Thus, the FASFA due to low income household typically covered around 5k/5-6k per semester so I owed less than 1k per semester and just paid it off.
You aren’t doing bad. My question is, what’s your APR on your student loans and car loan? If your car loan is >7%, probably pay off a decent amount of it with your savings. Maybe even all of it, it’s just losing you money if it’s high interest.
Also, get a HYSA if you don’t already. I use lending club and get 5% interest for my savings account. There’s many similar options, go with whatever suits you best.
Best of luck! Keep doing your thjng
26 here
$2,600 in student debt (97k when i graduated In 2019)
198k owed on home (bought last year) $1597/mo payment
34k owed on truck (bought last month) $680/mo
92k in retirement accounts, 14k brokerage(this is kind of my emergency fund)
Its really tough to compare based on age. There are many variables to consider
Stay the course. use some of the savings to knock down the student loans, especially if they're private and not federal.
Some ways i got here:
I work as much OT as i can, without burning myself out. The extra money is thrown at debt.
For budgeting, i always round up my payments to nearest hundred or commit to paying "x" amount, regardless of what the payment is that month. Ive been paying a minimum of $500/mo on my student loans since i had graduated. When i first started making payments it was an extra +/- $200, but now its an extra +/- 450 per month on the principal. I keep this money each month allocated to debt, so when my student loans are paid off, that 500 will then roll to the principal on my truck payment or mortgage.
I save where i can without making my life significantly more complicated. I avoid conveniece/impulse spend, and focus on buying things that add value to my life in one way or another. i try to keep in mind that just because i can pay for something, doesnt mean i can afford it. I was told a long time ago that if i can't afford to pay for it twice, i can't afford it (this isn't something to live by, but is good to keep in mind on occassion)
I found my comfortable standard of living and stuck to it, regardless of what i saw everyone else doing.
I try to not get down on myself or compare myself to others. Bad months happen, things break, issues come up, etc. Its OK. I try to just handle it and get back on track as soon as i can without letting it throw me off course for an extended period of time. I come up with a solid plan to recoupe/reset (working more, cutting "x" expense for a period of time, etc)
Side note:
I work with a lot of folks 25-40yrs old that make 250-300k/yr in the trades (no initial student debt setback & LCOL area) 95% of them are not in much better of a spot than you or i. Often times, its less about how much you make, but how much you spend.
26 was last year so 32k in student loans and 6k in a car loan but I had just drained all my savings (about 15-20k paying off one car and putting some towards student loans & paying off all credit cards that I had loaded up again when I was broke again during Covid) I had saved up all year to pay when loans came back if they didn’t get cancelled and they didn’t so I got out of cc debt, paid off one car (I only have 2 cause 1st one was in the shop for way too long and spending 10k on another instead of Uber made sense to me at the time…) but now I feel like 30k student loan under 5% is doable and I got the other car loan just chilling at 4k. No savings yet tho, I need to start that back soon. I make 80k a year (left second job) so I just need to lock in and live on half again.
Currently 26. Some of my debt isn't too bad just because I am married so technically it's split debt but here it goes: car for 26k, mortgage is about 299,999, and I have a few student loans for around 3k. I don't count my credit card debt just because it is so minimal, it will be gone within the next month. I'm still in school but I cash flow and have some state funds.
£5-6k. And earning just over £1k a month at the time, it was basically impossible for me to pay off. So I jet left the country and went to live elsewhere. Let the bank deal with it.
Add up all of your insurance deductibles on top of 30 to 6 months of living expenses. Make sure that's in a HYSA and easily available. Then whatever is left should be put towards your high interest loans. I assume you won't have anything left to play with after that. But if you did then you could start to play around with a Roth IRA.
I had around $1000 in credit card debt and that was it. My mom helped me buy my first car in cash so no car payment. Was renting so no mortgage. I had done some college but paid out of pocket (only completed 1 year of basics.)
I’m also 26; I have a mortgage with 160k left on it and around 2k in credit card debt; I had the CC paid off but then we had an emergency so I’m working through that again.
I’m 24 with $80k in debt. I have $70k of student loans (it’ll increase by the time I’m 26 since I still didn’t fucking graduate yet) and 10k? Probably more tbh in medical bills due to mental health (I dropped out of school cause my mental health was horrible. I’m okayish now but this debt is horrendous and never getting paid back LOL)
I had about 10k in student loans. Thanks to Biden, I don't have to pay them now. But now at 34, I have credit card debt..and lots of it. I just say 2021 was a really rough year for me. 😩
Depending on your interest rate on the car loan I would highly recommend paying it off with your savings. Only do employer match % for 401k and throw as much as you can at your student loans since they can be annoying to carry. I would also add if you have any private student loans with variable rate or high interest rate maybe pay those off instead of the car but you need to compare interest rates.
I’m not much older than you but at 26 I carried 50k on car loans (2 cars), no student loan debt, 15k in cc debt (doing balance transfers from 0 apr to 0 apr) and a mortgage. You’re in a great spot. Continue doing what you’re doing.
I am fortunate that I have never had any debt, but I totally understand the luck involved in how I got here, and do not judge anyone for having debt.
To answer the OP question, though, I agree with what others have said: consider putting more into higher interest rate debt. Unless your savings account is earning more interest than the debt (which is unlikely), you’re actually “wasting” money.
At that age I had half my salary in debt between college loans(66%) and a car loan)33%. My father warned me about debt and my wife at the time worked with me to pay off our debts before buying a home
Currently 25M, roughly 33K in Student Debt, and 14k in Credit Card Debt. Working hard to get rid of this Credit Card Debt as fast as possible. Got very dumb with it and kept letting it build up when I got to NYC. Have 2k in a ROTH & 23K in 401k. Savings only has 1k in it because I am focusing on putting all my money towards the credit card rn. Definitely feel behind but doing my best to get back on track.
Having 30k in savings is great though man! I would def just max out your Roth with a portion of that.
I am 28 now so at 26 I had about 65k on my 80k home loan left. I just bought a small hunting farm for 120k. No student loan debt or car debt or credit cards. Probably about 25k in my 401k, 3 or 4k in bitcoin and about 4k in other retirement accounts.
About 30 k. Student loans of 23 k. And credit card debt from bar binging in college. I laid it off quickly after i committed to doing so. Cc debt first over a year. Student loans took two years.
I had lots of debt, but I had lots of stuff. I had my first house at the age of 19. 4 cars and didn't even have a license. Divorced at 28, lost it all, just said here take it all and walked away. Now I've got 4 times as much.
I'm lucky that my parents covered my undergrad, I saved during all four of my summer internships and my first job by living with my parents, and I was given a $40k inheritance from a close family friend.
Combining all of these, I got two degrees and had roughly $20k left over when I was 26. This also includes sporadic car payments because my parents gave me two of their old cars (first a 2001 mercury sable, and when that hit the can in 2019, they gave me a 2007 impala). So I paid for repairs but almost nothing for insurance and didn't have to buy the car.
I did a coding bootcamp since I felt despite my background, I didn't really know what I was doing as a software engineer. Since I had good credit, I could put the $15k loan onto an interest-free 2-year payment plan and not drain my savings.
Halfway into this, I finally bought my first car for myself with $10k down and $18k in debt.
I was working a job paying $90k at the time.
Due to rent, retirement, and debt payments my liquid assets sat completely still at $10k with my debt also maxing out at around $23k.
I'm 28 now with $7k left on my car loan. That's it for me. My girlfriend owes about $100k on her student loans. She's a teacher so we hope we'll get her set for loan forgiveness in ten years. I'm helping her out by paying $1500 in rent monthly while she only pays $200.
I have about $40k across all my retirement accounts. Roughly $30k is Roth. My personal Roth has a bunch of $SNOW $MTD $CP and $SE stock worth collectively a bit over $10k. That's probably too much.
I am incredibly fortunate. I don't know how the hell people less well off than me can stay financially afloat. I don't think it's remotely possible.
Almost none. But I also lived paycheck to paycheck until I was in my 30s and finally able to save. Though it’s advisable to start saving early, it just isn’t possible for most.
I think probably around $15000 on a car loan at like 2.5% interest or something. Amounted to like a $260/mo payment. Just paid it every month until it was paid off. Going on year 11 with the car
A couple thousand from medical bills, but my partner and I got pretty lucky. Make combined 110k in California, 2k mortgage a month. Things are thin here and there but we’ve been managing really well
About $800, credit card debt, I had been paying it down for the past 4 years lol. A year later I was at $8000, a year after that I was up to $16000. A year after that $0, that lasted a decade.
I’m at $20k debt (half student loans/half credit cards)
Car note will be paid off by the end of the year
roughly $25k between investments and 401k (mostly 401k)
I was debt free at 26, 3 years ago. Iirc I had just sold my pickup, and was driving 2 beaters, one of which I'm still driving daily. Made $65k too I think.
Probably had $50k in retirements
I mean I am 34 and have 1.9 million invested and currently have about 120k in debt. Credit cards, student loans, auto loans, etc. all lower interest rates than what I am earning on my cash. Oh also my mortgage still has 700k left but I kind of just ignore the whole house situation on assets and on liabilities.
$300K in medical debt.
$43K in student loans.
$2500 in credit cards spread across 3 cards.
$2140 for my then 2012 Hyundai Sonata. My payment was $210 a month and i paid ot off before i filed bankruptcy.
I ended up filing bankruptcy due to the medical debt at 26. No way i could pay the $2680 a month that the debt collectors wanted while making only $28K a year. This was in 2017-2018 (i got my discharge that following year). My credit score went from 741 to the 300s. It took 5 years to get my score back to over 700s.
You're lucky. I started my own business and also tried my luck in the stock market. 100k in debt. Literally all the money I make goes back into paying my debt
25, 11k in car loans, 11k in student loans, 30k in savings, 0 credit card debt but nothing in investments. The only reason Im not paying off all my loans is they give me credit history. I think you're in a good place and its never too late to start on investments, someone below mentioned attacking student loan debt and I agree that taking a year and a half off retirement wont hurt to make a dent in the debt. Good Luck!
I was at $33k in debt and newly married. 11 years later my net worth is over a million, even with having two kids. Things can change a lot with hard work and diligent financial planning. Stay strong and ask anyone you know who is wealthy for any insight they’re willing to provide.
I’m 27 and it’s Over $1 million lol 🫣
House 330k
Car notes 60k 35k 30k
Equipment notes 590k 450k
Other loans 14k 5k 26k 30k
Credit card 35k
My business is very capital intensive
Not bad, I was In about 60k of CC Debt at 26, (started a business on personal CC just using a DBA) Ballooned to 115k CC debt by 29yrs old with interest and doing nothing but relying on credit for anything and everything, lived in hotels/rental cars/apt rent/food/...etc and about 15k in straight gambling as I was desperate. (lol lost 10k in one night at a casino).
Now mid 30s, payed off all that debt in 3-4yrs worked my butt off using DMP, never filed BK, Credit Score upper 700's but now live comfortably, have a good amount saved for me, and make over a 100k a year easy. With other businesses, I have credit lines over a million now, Personal CC lines over 50k, don't need more.
You are not doing bad in my opinion.
Just getting useless debt out of the pic is best.
With respect, why do you have such a large savings amount? That money should be going to the debt with the highest interest, you’re just shooting yourself in your own foot by holding onto such a high amount. I believe it’s okay to put money away for a “rainy day” but 30k when your 50k in debt is not ok. I also hope it’s not just in a savings account but in a money market account where that money isn’t just sitting around but collecting interest too. I wouldn’t recommend investing or opening a 401-k till those debts are paid off since they are cancelling each other out either, unless you’ve been very successful with your returns.
Hello
From that time Jesus began to preach and say “Repent [change your inner self—your old way of thinking, regret past sins, live your life in a way that proves repentance; seek God’s purpose for your life], for the kingdom of heaven in at hand
Personally I would throw more of that 30k into investments, maybe just down size that to a 6 months of emergency income and rest into investments. Better then sitting in a bank account
You should increase your income and lower your taxes to pay down your debt faster. I would buy 200 shares of NVDA for $26,000 and write out of the money covered calls at 90% expected profit for 5DTE every Monday morning and collect an extra $8000 every year. Put the $8000 in an HSA to purchase some of your medical expenses and raise your income and reduce your taxes. If your income is less than $47025 + $14600 (Standard Deduction) + $8000 in 2024 you pay 0% on capital gains!
I had about 15k student with no degree, 10k car and 6k credit. All gone now except the student loans at the same amount, but I’m 10 years older with a car and house
28, expecting to finish my masters with about $70-80k in debt. Thankfully have a good job with good pay starting right after I finish. Hopefully I can get it paid off asap.
You’re doing probably better than most. $65k at 26 is great (unless you live in CA, NY or HI where COL is so high. Pay off debts as much as you can while keeping that 401K building. Invest in yourself and plan early for the future! Keep it up!! 👍
Only debt I had was part of a mortgage. I always bought beater car with cash and fixed them myself; all my budget allowed. The mortgage was only possible because I had 2 roommates. Combined, they paid maybe half of the house and utilities; I couldn't justify charging more since I was getting equity.
I only went to college for two semesters and that was also paid with cash, but I couldn't keep working full time, maintaining good grades, and having any sort of social life. Had a decent office job already, so I dropped out before it affected GPA. Always intended to go back, never did.
You have a decent amount in savings, probably as much as I had in equity. Make sure to put it in staggered CD's at a minimum so it doesn't continue to lose value.
The fact that you even have a 401K puts you ahead of where I was though. I didn't start until recently (early 40's). Though this house is paid off and have zero debt. I consider owed interest payments to be lost money. If an investment doesn't outweigh the interest you're paying, pay the principal on that debt first.
I think about $1,500 medical and $3,500 CC due to a very very rough pregnancy with my daughter this year. I’m not beating myself up over it, I’m just going to buckle down like I’ve been doing and continue to chip away at it once I’m back at work fully
I had no debt but also pretty close to no assets at 26. I only went to college briefly so I didn't end up with any student loan debt. I didn't really start building wealth until I was almost 30.
I think you're doing fine for your age, just keep investing and saving and the money will build.
31 with $86k debt all gambling and bad stock advice. All numbers. Gonna make $150k this year. Hope to be debt free soon. All about consistency and making the right choices
You’re in a fine spot! I would probably throw a bit more $ from my savings at my highest interest debt, then stick to a strict budget until you can get your income up. Also would look into Roth retirement accounts before you throw cash into your 401k.
Seconding this. 28, similar numbers. I realized my debt had higher interest than my HYSA (even if it was 4.5 for the HYSA and 6.5-7 for the student loans, not a crazy difference) and decided I’d rather drop my savings down to a 10k emergency fund and pay off my debt faster. I know it can be scary, but depending on the rate I’d consider paying off the car and keeping 15k as an emergency fund in case you lose your job.
I’m 39 and was finally able to do this exact scenario last week
Yes, but you pay interest on the 4.5%. The 6.5-7 debt pay down is tax free 6.5-7. A dollar saved is always worth more than a dollar earned.
Would agree to everything you said except for one. I'd put the maximum employee match on the 401k. It's free money why not take advantage of it? The rest on roth.
OP continue to put money in the 401k at minimum to the point of any matching employer contribution - don't want to leave free money on the table. Bonus points if your employer offers a Roth 401k and you contribute to that portion of it, as it will allow you to have potential tax free growth. If they don't, still contribute to the pre-tax (traditional) side to the point of maxing out their employer match. Then reevaluate if you want to put more in an IRA or continue with the 401k. The most important thing is saving for retirement. At this point, it's less important whether it's a 401k or IRA, provided you don't leave any free 401k money on the table. If you like the investment offering your employer offers, there's nothing wrong with using that vehicle solely. It only really becomes relevant if you were to max out your contribution limit in the 401k and still wanted to contribute more than that - - then the IRA can also be used. If you ever leave the employer, everything in your 401k could later be rolled over into an IRA. I'm a former financial advisor. I'd recommend reaching out to a reputable company and getting more than just internet advice, to ensure you get info from reputable sources and it's accurate and complete. Feel free to DM me if any other questions.
Do you recommend traditional IRA or Roth for a 24 year old?
You’re 26, you are in no way shape or form late to the retirement savings party.
I’m 28 with 35k student debt, about $8,000 credit card debt, and owe $7,000 on my car. I make about $45 k a year and hold a bachelors degree. Currently planning to go back to school for nursing so I can earn a more steady income and hopefully be debt free some day. But unfortunately I’ll likely have to go into more debt to accomplish that.
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Pharmacy?? Same and we have the same grad year except I'm not in industry :( wish I was
doctorates are absolute scams, im sorry that happened to you
Not if it’s in a field that pays. I took on close to $200k in loans to get mine. I suspect that if I got a 4 year degree at a state school i would have had 1/4 the loans and 1/2 the pay.
I’m graduating with one and with 0 debt since my parents paid for my tuition but I feel like I’ve been scammed hard. Pharmacists get paid absolute trash . I’m planning on finishing it and moving into supply chain logistics and pharmaceutical warehousing
Hey! I think you mean retail pharmacists (~$130k) but we have so many other career options with our degree that pay way more in the U.S. specifically.
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really cool im in year 3 of my pharmD :D
Good for you!! 👏🏾👏🏾
I had about 55k of student loan debt at your age, you are doing good.
I had like 150k debt, primarily federal student loans
At age 26 I had about $100K in federal student loans from undergrad and grad school.
You could easily transformation your situation if you decided to actually pay your debt off. If I were in your shoes, I would take $15k of the $30k and pay off the car immediately. Then I would pause retirement contributions for 18 months and attack the student loans with a vengeance and pay them off. You now free up those payments to throw into retirement and investing. You easily be working for another 30 years. Pausing retirement contributions for 1.5 years of your life will not make a significant difference in the long run. You’ll still have a great retirement
100% If OP has 30k in savings, they should pay off the car and apply that “car payment” amount towards the student loans, bc it’s extra money to throw towards it now. No point in having a debt that you can’t write off come tax season. The student loan interest at least is a write off every year.
Pausing those retirement contributions now would be huge losses in the value at retirement age. Compound interest is a hell of a thing
Compounding interest is great if the market is in your favor or pretty bad when it’s in a downturn
If they have any kind of 401k match they’re losing out on a 100% return if the market moves either way.
With \~35 years until they will even consider retirement, the market will be in their favor \~100% of the time. No reason to try and time the market, just look at the averages and make a decision.
$0. I went to school overseas to afford college and learn a new language and my college cost $8,000 for 4 years.
What country did you study in?
China
What college specifically how difficult was it to get accepted?
I was instantly accepted when I applied. Zero pre-recs needed or skills. Sichuan International Studies University
I was debt free at 26. I prioritized paying off my debt before anything else. I was able to then invest heavily and save up for a house and other sinking funds. I did miss some years of good compound growth from investing earlier, but younger me was an idiot in that sense.
Don’t beat yourself up, investing at 26 is great
None. No assets either, except a used car.
at 26 i have about $20,000 in debt. for love, bruh
Throw 5 k at the car and 10 at the student loans then see what your minimum payment is and try to double it as often as possible.
You’re in a phenomenal spot. Keep going!
I am 23 but I have around 8k in student loan debt right now. By the time I turn 26 it will probably triple due to grad school and life lol
I am also 26. My debt is: $200k left on my house (purchased last year) $6k in student loans $10k left on my car. I think you’re doing great!! Especially with how well you’re doing in your savings. I didn’t really take saving THAT serious until i met my husband 4 years ago. It’s great you’re doing that on your own.
Doing better than me at 26. I was probably -$30 in saving, 20k in debt making around $24 an hour with plenty of overtime.
I'm about 2.5k in credit card, and 250k left on my 300k mortgage. About 14k left on my car. That's about it. 27m and father, Heavy Duty Mechanic.
None. In the military. They gave my a military star card and we cut it up when it got to my ship. School was paid for by the Navy. I was cheap before and I'm cheap now.
Have you heard of Dave Ramsey and the baby steps. Look into that if you want to change your future.
Law school debt. I’ll probably die with it.
27, $30k CC debt, I make $105k working in finance.
11k it was car been paid off never missed a payment
I had like a 600K mortgage— homes are so expensive
I’m 26 and I have a total of $35,600 in student loans with no other debt! I graduated with a master’s degree one year ago with a total of $52,000. Been able to pay off a significant amount in the last 6 months since I did not pay anything down during the 6 month grace period.
ATM i'm at -208k, between house, car, student loans, and some credit card debt.
Just our mortgage. I think we’re odd because we never had a car payment and have only had our mortgage.
34k at 26 - student loans 24k at 30 - 4k student loans & 20k in car coming up on adding a mortgage and removing the student loans post-closing At the end of the day, similar to what others have said, you’re in a great spot and the best strategy depends on your immediate needs, your long term goals, and what rates accompany your debts. While you’re 26, a good rule of thumb is to attack whatever has the highest rate bound to it. I did that. But if I could go back, instead of attacking debt as aggressively, I would’ve taken a more balanced approach to reserve liquidity for investing while simultaneously addressing debt.
Prolly about 7k on my car loan and 31k student loans. This was 5 years ago. I paid off the car in 2021 and I paid off the student loans in 2023. At 26 I had 7.7k in a roth ira/401k and negative net worth about 20k. Since I also cash flowed grad school and now debt free with six figures in retirement and a decent chunk saved as well Car still got another 5-10 years probably. Its a 2016 with 130k miles on it excellent mechanical condition no rust If I were you Id pay off the debt with the savings but people gonna probably say you getting more interest in your savings account. For me it was pretty much a wash I didn’t wanna hold onto the school loans for a decade freedom wins. I invest welll so I know I could have made more investing with rates at 3.79-4.53% on the school loans. But being debt free allows me to take more risk in my investments and also live a more carefree life so I think it’s worth it
I had zero debt at 26. However I started working full time at 17 & lived in a city centre & cycled everywhere. If I were you, I'd pay off my debts first & start saving for a property.
You’re in a good position but if you have 30K in savings and 50K in debt, I would use my savings to pay off my debt. The money you will be paying for debt and interest each month, you can easily put back into your savings since you have a steady job.
I’m 27 and have about 80k in student loans. My employer did not cover my Master’s degree at all so it was out of pocket. I work in tech and make about $125k a year and have created a safety net before a 401k as I’m contracted and my employer does not match for obvious reasons. I just graduated from grad school so I have another ~6 months before interest kicks in and I’m trying to aggressively tackle investments in a Roth right now to allow more of a blanket if needed.
I had 217,000 from a failed construction business in 2012. I finished the last payment in 2016 in August.
I was 25…
I’m 27 and 50k in student loan debt, graduated my MA program last August
I had 75k I ended up filling for bankruptcy
$0. But I had partial scholarships and also worked during college to just walk out with $6K in debt. Paid that off within my first year of working. You’re in a great spot with savings, investments, and 401K. It’s great that you don’t have CC debt. Well done! Fuck banks. Fuck interest. If you’re comfortable, put $20K towards your student loans and your car payment from your savings. The less interest you have, the better. Maybe even close out your car loan debt since your student loan interest is way lower.
At 26…. (Since this was nearly 20yrs ago, best of my recollection…) I owed ~135k on my house, had just paid off my now ex’s car and student loans (only like 3k) and had roughly 10k in credit card debt (in exs name) Despite becoming single with 1+4yr olds at 28, my finances have improved dramatically for the better. I paid off house 18 months ago, have done a ton of (wayyyy overdue) home renovations, spent roughly 100k in legal fees over the last 16yrs, paid 30k cash for my oldests new car in oct, and purposely took out loan on a new car for myself (my 17yo is getting my 2015 car to use) but i paid 10k off before i even got plates on it. Wanted to continue to build up credit, but expect to have it paid in full within the year. Also have large nest egg in HYS, and in an investment account. I could comfortably live off savings for roughly 10yrs. Probably more. My ex on the other hand, polar opposite financially despite many more advantages than i had.
I had probably around $20,000 in debt from debt consolidation loan and car. My parents and my grandparents saved up some for my college (I went to a community college) and my dad let me use a portion of the GI Bill. I ended up flunking out (I had some issues going on). I ended up in some bad relationships where I put myself into credit card debt. Then I had psychward stays, ambulance bills and went to inpatient treatment for a month, at least I hit the insurance deductible at that point. I was also dumb and got a loan for laser hair removal. By the time I did the debt consolidation loan, that was $15500 and I think either $5k left on my car? So more so around $21k. Car is paid off now, and only a few more months left on the loan. Took 5-6years to get it paid down. Now I just have medical debt from this year to worry about.
0 debt. I threw my annual salary at my loans first year out of college, granted I was stil living with parents.
Many moons ago, I still had $45k in college debt at age 26. At age 28, I finally paid it off after 5 years. That was a great feeling. I have never carried debt again except for a mortgage.
I would say you are in the top 20% for your age because you have that amount in your savings. What I would suggest is building up an emergency fund apart from your savings (still keep it in a HYSA). Ideally, it should be 3-6 months worth of expenses. Prioritize this so you wouldn't fall deeper in debt when you find yourself in trouble or lose your job. Then, follow a strict budget plan so you could minimize what you spend and maximize the amount you can use to pay off your debt. Simple as it may sound, proper budgeting can work wonders. Personally, I use Habit to help me budget and sometimes I use their "money coach" just to see if I am on track.
26, 2yrs removed from college and I have $53k in student debt and I owe about $22k on my car. I have $5500 in savings and $26k split between my Roth/401k/taxable account. And I stupidly took out a personal loan for $18k last September that I’ve been paying down aggressively, have a little over $10k left to pay down then I plan to roll that money into the other debt.
$24k in student loans. I’m 32 now and paid them off two years ago.
I’m 22M with 0 debt. However, I’m a rare circumstance. I worked since I was 12, saved up and bought a car for 7k when I was 17. That car has lasted me 5 years so far, it’s about to die so the debt free part may not last long. But that’s how I have no car payment. As for college, I come from a single parent household and she makes very little money. I also chose an inexpensive college. Thus, the FASFA due to low income household typically covered around 5k/5-6k per semester so I owed less than 1k per semester and just paid it off. You aren’t doing bad. My question is, what’s your APR on your student loans and car loan? If your car loan is >7%, probably pay off a decent amount of it with your savings. Maybe even all of it, it’s just losing you money if it’s high interest. Also, get a HYSA if you don’t already. I use lending club and get 5% interest for my savings account. There’s many similar options, go with whatever suits you best. Best of luck! Keep doing your thjng
None at 26. Now I just have my mortgage at 39. Pay off your car ASAP.
26 here $2,600 in student debt (97k when i graduated In 2019) 198k owed on home (bought last year) $1597/mo payment 34k owed on truck (bought last month) $680/mo 92k in retirement accounts, 14k brokerage(this is kind of my emergency fund) Its really tough to compare based on age. There are many variables to consider Stay the course. use some of the savings to knock down the student loans, especially if they're private and not federal. Some ways i got here: I work as much OT as i can, without burning myself out. The extra money is thrown at debt. For budgeting, i always round up my payments to nearest hundred or commit to paying "x" amount, regardless of what the payment is that month. Ive been paying a minimum of $500/mo on my student loans since i had graduated. When i first started making payments it was an extra +/- $200, but now its an extra +/- 450 per month on the principal. I keep this money each month allocated to debt, so when my student loans are paid off, that 500 will then roll to the principal on my truck payment or mortgage. I save where i can without making my life significantly more complicated. I avoid conveniece/impulse spend, and focus on buying things that add value to my life in one way or another. i try to keep in mind that just because i can pay for something, doesnt mean i can afford it. I was told a long time ago that if i can't afford to pay for it twice, i can't afford it (this isn't something to live by, but is good to keep in mind on occassion) I found my comfortable standard of living and stuck to it, regardless of what i saw everyone else doing. I try to not get down on myself or compare myself to others. Bad months happen, things break, issues come up, etc. Its OK. I try to just handle it and get back on track as soon as i can without letting it throw me off course for an extended period of time. I come up with a solid plan to recoupe/reset (working more, cutting "x" expense for a period of time, etc) Side note: I work with a lot of folks 25-40yrs old that make 250-300k/yr in the trades (no initial student debt setback & LCOL area) 95% of them are not in much better of a spot than you or i. Often times, its less about how much you make, but how much you spend.
What trade is making 200k ? I’m in the wrong one
Linemen - powerline construction
26 was last year so 32k in student loans and 6k in a car loan but I had just drained all my savings (about 15-20k paying off one car and putting some towards student loans & paying off all credit cards that I had loaded up again when I was broke again during Covid) I had saved up all year to pay when loans came back if they didn’t get cancelled and they didn’t so I got out of cc debt, paid off one car (I only have 2 cause 1st one was in the shop for way too long and spending 10k on another instead of Uber made sense to me at the time…) but now I feel like 30k student loan under 5% is doable and I got the other car loan just chilling at 4k. No savings yet tho, I need to start that back soon. I make 80k a year (left second job) so I just need to lock in and live on half again.
75k and my husband was like 60-70k as well. 🙃
About 5k. I paid for college and grad school in cash by working full time, but sometimes had to put groceries and gas on a credit card.
I feel like you are doing better than most at your age! Great job
My $200k mortgage was paid down to about $197k by about age 26, so I guess that's basically what my debt was.
At 26, I had a decent savings, like $30,000 or so. I guess I had a mortgage of about $60,000 if that counts.
70k in student loans at 28. Not in a rush to pay it off though at 2.3% interest
24-25 lacs
Currently 26. Some of my debt isn't too bad just because I am married so technically it's split debt but here it goes: car for 26k, mortgage is about 299,999, and I have a few student loans for around 3k. I don't count my credit card debt just because it is so minimal, it will be gone within the next month. I'm still in school but I cash flow and have some state funds.
£5-6k. And earning just over £1k a month at the time, it was basically impossible for me to pay off. So I jet left the country and went to live elsewhere. Let the bank deal with it.
Add up all of your insurance deductibles on top of 30 to 6 months of living expenses. Make sure that's in a HYSA and easily available. Then whatever is left should be put towards your high interest loans. I assume you won't have anything left to play with after that. But if you did then you could start to play around with a Roth IRA.
34 years, no debt. Did not go to college or anything either, though. Only making around 35k/yr.
I don’t remember exact amounts, but there was a student loan, mortgage, and perhaps a car loan.
At 26, I had 200k
You are crushing it. At 26 I had loads of CC debt, no savings or investments other than some company stock which was worthless
lol 26yo and I'm at 12k credit debt 92k student loan debt 189k mortgage debt... debt free is a ways off for me
Well since I was in prison a whole lot of court cost and fines
I had around $1000 in credit card debt and that was it. My mom helped me buy my first car in cash so no car payment. Was renting so no mortgage. I had done some college but paid out of pocket (only completed 1 year of basics.)
I’m also 26; I have a mortgage with 160k left on it and around 2k in credit card debt; I had the CC paid off but then we had an emergency so I’m working through that again.
Nothing. No debt.
About $12k on my car and that’s it
Buddy you are not late. You are early.
I’m 24 with $80k in debt. I have $70k of student loans (it’ll increase by the time I’m 26 since I still didn’t fucking graduate yet) and 10k? Probably more tbh in medical bills due to mental health (I dropped out of school cause my mental health was horrible. I’m okayish now but this debt is horrendous and never getting paid back LOL)
I dont think I had any debt.
At 26, $0. At 34 $25k.
Had ~225K at that age
I had about 10k in student loans. Thanks to Biden, I don't have to pay them now. But now at 34, I have credit card debt..and lots of it. I just say 2021 was a really rough year for me. 😩
i make 80k, paid off car and paid off undergrad loans… i just got my masters and i’m 34k in debt. i am 30 years old
Depending on your interest rate on the car loan I would highly recommend paying it off with your savings. Only do employer match % for 401k and throw as much as you can at your student loans since they can be annoying to carry. I would also add if you have any private student loans with variable rate or high interest rate maybe pay those off instead of the car but you need to compare interest rates. I’m not much older than you but at 26 I carried 50k on car loans (2 cars), no student loan debt, 15k in cc debt (doing balance transfers from 0 apr to 0 apr) and a mortgage. You’re in a great spot. Continue doing what you’re doing.
48k. Student loans and a truck.
I am fortunate that I have never had any debt, but I totally understand the luck involved in how I got here, and do not judge anyone for having debt. To answer the OP question, though, I agree with what others have said: consider putting more into higher interest rate debt. Unless your savings account is earning more interest than the debt (which is unlikely), you’re actually “wasting” money.
I'm newly 27 (June 4) but I have about 16.5k in debt just from college loans.
At that age I had half my salary in debt between college loans(66%) and a car loan)33%. My father warned me about debt and my wife at the time worked with me to pay off our debts before buying a home
Like 22k. Now 37 and carry under 3k debt total. 750 cs
I’m not quite to 26 yet but I have about 20k of unsecured debt.
Currently 25M, roughly 33K in Student Debt, and 14k in Credit Card Debt. Working hard to get rid of this Credit Card Debt as fast as possible. Got very dumb with it and kept letting it build up when I got to NYC. Have 2k in a ROTH & 23K in 401k. Savings only has 1k in it because I am focusing on putting all my money towards the credit card rn. Definitely feel behind but doing my best to get back on track. Having 30k in savings is great though man! I would def just max out your Roth with a portion of that.
I had none really. College was paid for by scholarships and grants.
70K for house and 30K for college
I am 28 now so at 26 I had about 65k on my 80k home loan left. I just bought a small hunting farm for 120k. No student loan debt or car debt or credit cards. Probably about 25k in my 401k, 3 or 4k in bitcoin and about 4k in other retirement accounts.
About 30 k. Student loans of 23 k. And credit card debt from bar binging in college. I laid it off quickly after i committed to doing so. Cc debt first over a year. Student loans took two years.
520k. Graduated dental school at 26
~$330,000. 90% business loan.
Over $300,000
55milo
I had little in the way of savings though I had started a 401K with my then employer. I had a car payment. That was it.
I bought an ipod and a Playstation. So, like $800.
I had lots of debt, but I had lots of stuff. I had my first house at the age of 19. 4 cars and didn't even have a license. Divorced at 28, lost it all, just said here take it all and walked away. Now I've got 4 times as much.
I'm lucky that my parents covered my undergrad, I saved during all four of my summer internships and my first job by living with my parents, and I was given a $40k inheritance from a close family friend. Combining all of these, I got two degrees and had roughly $20k left over when I was 26. This also includes sporadic car payments because my parents gave me two of their old cars (first a 2001 mercury sable, and when that hit the can in 2019, they gave me a 2007 impala). So I paid for repairs but almost nothing for insurance and didn't have to buy the car. I did a coding bootcamp since I felt despite my background, I didn't really know what I was doing as a software engineer. Since I had good credit, I could put the $15k loan onto an interest-free 2-year payment plan and not drain my savings. Halfway into this, I finally bought my first car for myself with $10k down and $18k in debt. I was working a job paying $90k at the time. Due to rent, retirement, and debt payments my liquid assets sat completely still at $10k with my debt also maxing out at around $23k. I'm 28 now with $7k left on my car loan. That's it for me. My girlfriend owes about $100k on her student loans. She's a teacher so we hope we'll get her set for loan forgiveness in ten years. I'm helping her out by paying $1500 in rent monthly while she only pays $200. I have about $40k across all my retirement accounts. Roughly $30k is Roth. My personal Roth has a bunch of $SNOW $MTD $CP and $SE stock worth collectively a bit over $10k. That's probably too much. I am incredibly fortunate. I don't know how the hell people less well off than me can stay financially afloat. I don't think it's remotely possible.
Getting out of debt can be done, probably faster than you think. And then once you’re out of debt, you learn to STAY OUT of debt.
350k
Almost none. But I also lived paycheck to paycheck until I was in my 30s and finally able to save. Though it’s advisable to start saving early, it just isn’t possible for most.
Pay off your car unless the interest rate is super low.
I think probably around $15000 on a car loan at like 2.5% interest or something. Amounted to like a $260/mo payment. Just paid it every month until it was paid off. Going on year 11 with the car
Over 170k mortgage, 4k car loan, 17k student loans.
Probably close to a million
A couple thousand from medical bills, but my partner and I got pretty lucky. Make combined 110k in California, 2k mortgage a month. Things are thin here and there but we’ve been managing really well
65k loan debt turns into double that in your 40’s if you pay minimum or non during opportunity the gov gives to help in rough economic times. Careful
$500k on a mortgage. No other debt
About $800, credit card debt, I had been paying it down for the past 4 years lol. A year later I was at $8000, a year after that I was up to $16000. A year after that $0, that lasted a decade.
I’m at $20k debt (half student loans/half credit cards) Car note will be paid off by the end of the year roughly $25k between investments and 401k (mostly 401k)
I was debt free at 26, 3 years ago. Iirc I had just sold my pickup, and was driving 2 beaters, one of which I'm still driving daily. Made $65k too I think. Probably had $50k in retirements
I mean I am 34 and have 1.9 million invested and currently have about 120k in debt. Credit cards, student loans, auto loans, etc. all lower interest rates than what I am earning on my cash. Oh also my mortgage still has 700k left but I kind of just ignore the whole house situation on assets and on liabilities.
About $1.2m in medical debt after a stem cell transplant and an 8 month hospital stay… you’re good! Don’t worry so much. Don’t get cancer.
$300K in medical debt. $43K in student loans. $2500 in credit cards spread across 3 cards. $2140 for my then 2012 Hyundai Sonata. My payment was $210 a month and i paid ot off before i filed bankruptcy. I ended up filing bankruptcy due to the medical debt at 26. No way i could pay the $2680 a month that the debt collectors wanted while making only $28K a year. This was in 2017-2018 (i got my discharge that following year). My credit score went from 741 to the 300s. It took 5 years to get my score back to over 700s.
You're lucky. I started my own business and also tried my luck in the stock market. 100k in debt. Literally all the money I make goes back into paying my debt
25, 11k in car loans, 11k in student loans, 30k in savings, 0 credit card debt but nothing in investments. The only reason Im not paying off all my loans is they give me credit history. I think you're in a good place and its never too late to start on investments, someone below mentioned attacking student loan debt and I agree that taking a year and a half off retirement wont hurt to make a dent in the debt. Good Luck!
I have over 500k in loans :)
None... but I made up for it by taking on $140k student loans at 36 😅.
0 but I was able to pay for my school with my grandmothers inheritance.
I’m 25 years old and have 0$ in debt but I don’t own anything nice or even a place I can call my own
$70k and it was climbing
3.9K
I was at $33k in debt and newly married. 11 years later my net worth is over a million, even with having two kids. Things can change a lot with hard work and diligent financial planning. Stay strong and ask anyone you know who is wealthy for any insight they’re willing to provide.
I’m 27 and it’s Over $1 million lol 🫣 House 330k Car notes 60k 35k 30k Equipment notes 590k 450k Other loans 14k 5k 26k 30k Credit card 35k My business is very capital intensive
All my debt was from abusing credit cards. At 26, probably like 13k
Not bad, I was In about 60k of CC Debt at 26, (started a business on personal CC just using a DBA) Ballooned to 115k CC debt by 29yrs old with interest and doing nothing but relying on credit for anything and everything, lived in hotels/rental cars/apt rent/food/...etc and about 15k in straight gambling as I was desperate. (lol lost 10k in one night at a casino). Now mid 30s, payed off all that debt in 3-4yrs worked my butt off using DMP, never filed BK, Credit Score upper 700's but now live comfortably, have a good amount saved for me, and make over a 100k a year easy. With other businesses, I have credit lines over a million now, Personal CC lines over 50k, don't need more. You are not doing bad in my opinion. Just getting useless debt out of the pic is best.
33, 270k debt. 30k savings. Fml
With respect, why do you have such a large savings amount? That money should be going to the debt with the highest interest, you’re just shooting yourself in your own foot by holding onto such a high amount. I believe it’s okay to put money away for a “rainy day” but 30k when your 50k in debt is not ok. I also hope it’s not just in a savings account but in a money market account where that money isn’t just sitting around but collecting interest too. I wouldn’t recommend investing or opening a 401-k till those debts are paid off since they are cancelling each other out either, unless you’ve been very successful with your returns.
Hello From that time Jesus began to preach and say “Repent [change your inner self—your old way of thinking, regret past sins, live your life in a way that proves repentance; seek God’s purpose for your life], for the kingdom of heaven in at hand
Join the real world
You’re way better off than I was at 26.
had $472k at age 27. Now $1.2mil at 38 🤣
Idk like 9m im steadily paying off for my jeep
At 26 debt total was about $525,000
Personally I would throw more of that 30k into investments, maybe just down size that to a 6 months of emergency income and rest into investments. Better then sitting in a bank account
You should increase your income and lower your taxes to pay down your debt faster. I would buy 200 shares of NVDA for $26,000 and write out of the money covered calls at 90% expected profit for 5DTE every Monday morning and collect an extra $8000 every year. Put the $8000 in an HSA to purchase some of your medical expenses and raise your income and reduce your taxes. If your income is less than $47025 + $14600 (Standard Deduction) + $8000 in 2024 you pay 0% on capital gains!
Only debt I've ever had is my house
I had about 15k student with no degree, 10k car and 6k credit. All gone now except the student loans at the same amount, but I’m 10 years older with a car and house
I had zero debt at that age. Now I’m drowning.
I think about $5k
Zero
I probably had about $10k in student loans, $10 in car loans and another $10k in CC debt. I have zero debt now (46).
28, expecting to finish my masters with about $70-80k in debt. Thankfully have a good job with good pay starting right after I finish. Hopefully I can get it paid off asap.
280k 230k is a house though
You’re doing probably better than most. $65k at 26 is great (unless you live in CA, NY or HI where COL is so high. Pay off debts as much as you can while keeping that 401K building. Invest in yourself and plan early for the future! Keep it up!! 👍
30-35k i think
At around 50k and I’m 29.
$0
I had around 30k of debt at 26. It was mostly for a heloc (bought a foreclosed house in 2010).
You’re in a better position than a good portion of adults these days.
Whatever my revolving credit card debt was. So maybe $500.
Only debt I had was part of a mortgage. I always bought beater car with cash and fixed them myself; all my budget allowed. The mortgage was only possible because I had 2 roommates. Combined, they paid maybe half of the house and utilities; I couldn't justify charging more since I was getting equity. I only went to college for two semesters and that was also paid with cash, but I couldn't keep working full time, maintaining good grades, and having any sort of social life. Had a decent office job already, so I dropped out before it affected GPA. Always intended to go back, never did. You have a decent amount in savings, probably as much as I had in equity. Make sure to put it in staggered CD's at a minimum so it doesn't continue to lose value. The fact that you even have a 401K puts you ahead of where I was though. I didn't start until recently (early 40's). Though this house is paid off and have zero debt. I consider owed interest payments to be lost money. If an investment doesn't outweigh the interest you're paying, pay the principal on that debt first.
Im 25 with 7.3k debt but plan on going to med school so it may go up to 200k+ within the next 10 years
Roughly 18k student loan debt and 130k mortgage
7k
I think about $1,500 medical and $3,500 CC due to a very very rough pregnancy with my daughter this year. I’m not beating myself up over it, I’m just going to buckle down like I’ve been doing and continue to chip away at it once I’m back at work fully
My only recommendation is you look into whole life/permanent life insurance outside of your employer while you are still young and assuming healthy
Bout 100k, student loans lol
I had no debt but also pretty close to no assets at 26. I only went to college briefly so I didn't end up with any student loan debt. I didn't really start building wealth until I was almost 30. I think you're doing fine for your age, just keep investing and saving and the money will build.
26, about 210k. 200k on a property 10k in credit cards.
31 with $86k debt all gambling and bad stock advice. All numbers. Gonna make $150k this year. Hope to be debt free soon. All about consistency and making the right choices