The Plan

Well, I am officially involuntarily unemployed (due to layoff) for the first time in my life since I was 12 years old.  It’s kind of a scary feeling, but I know I will get a job soon and get back on track.  My savings over the past five months have skyrocketed.  I was at about $500 cash when I went into my new job, and now I will be at approximately 5,200 after my last paycheck/next weeks expenses.  A nearly 1,000/month savings isn’t too bad.  I was pretty dumb the first month or so of my new job and spent a lot of money going out to eat and out to bars, etc., plus a big month taking a trip to Green Bay for Packers training camp.  With all that in the past, I was able to crack down as soon as I heard news of my layoff and save as much as I could while still having a good time.

While I’m pretty bummed I lost out on a job that had me on track for a nearly 45,000 gross first year, I’ll get over it.  I have an interview tomorrow with a company I’ve worked with before, doing seasonal warehouse work.  I would be at 14.90/hr for the first four months, and then if I were hired on for good it would boost up to 16.60 plus raises up until about 19.50.  The main goal with this company is to get on full-time, and then utilize my 4-year degree to get in with a management position.  All they require are 4-year degrees, and they start at roughly 65,000/year.  This would be fantastic, and allow me to work for about 10 years and make my dreams come true.

After crunching some numbers, I decided that if I were offered the job, I will accept it.  As long as it doesn’t break my back (loading semi trailers with merchandise) I will remain there and hope to get on full-time.  I did this job for them before for over 3 months and I survived, so all should be well.  I would then apply for every management opportunity I can manage, and eventually it should work out.  My plan is to get this job, or an even better paying one, and live comfortably but on an “Extras” budget like I’ve been doing the past 2 months.  I will pour excess money into my student loan debt and get it paid off within four years.

Here’s what I’ve got for some of my numbers and outlooks:

Monthly expenses
Student loan – 60
Food – 160
Gas – 70
Phone – 55
Ins/AAA – 35
Rent – 400
Utilities  – 75
Misc – 100

1 Total Current – 955 MO / 11,460 YR
2 Total Current w/ 350 SL – 1245 / 14,940
3 Total Current w/ 660 SL – 1555 / 18,660
4 Total Current w/ 660 SL, 160 Misc, 200 Roth, 100 Invest – 1915 / 22,980
5 Total Current w/ 860 SL, 160 Misc, 450 Roth, 100 Invest – 2365 / 28,380

New Job Salaries

Seasonal 40 Hr Weeks
14.90 HR / 22.35 OT
600 Gross / 450 Net
2400 Month G / 1800 Month N
31000 YR G / 23400 YR N

1 Available after expense categories: 11940 YR
2: 8460
3: 4740
4: 420

FT 40 Hr Weeks
16.56 / 24.84
662 / 500
2650 / 2000
34400 / 26000

1: Available after expense categories: 14540
2: 11060
3: 7340
4: 3020

FT 40 Hr Weeks w/ Max Pay
19.50 / 29.25
780 / 581
3120 / 2324
40560 / 30212

1 Available after expense categories: 18752
2: 15272
3: 11552
4: 7232
5: 1832

I get pretty obsessive about this stuff just for the intrigue.  I love to visualize my potential financial future and how well or crappy it’s gonna look with a certain job.  In this case, this is most likely the job I’m going to have for the next one or two years unless something else that pays a lot more, or is a lot more enjoyable for the same pay, comes along, which is doubtful.  With expense categories 1-4, it’s just a scale that increases with student loan payments, and then adds in extras, roth, and portfolio investments.  The last category includes the student loan payment that would allow me to payoff in 3 years instead of 4.  I wouldn’t be at that pay level for another two years anyways, but it’s just there for an idea.  So by the looks of these numbers, this job looks pretty damn good!  Even at the lowest grade, I would be able to afford to throw out my 660/month payment, and have over 8,000 left at the end of the year to add to it.  The job isn’t guaranteed yet, but with my past experience and their need for extra people to cover the seasonal demand, I should definitely get an offer.

So for now, that’s my plan.  Get a job that pays similar to this; most likely this job, of course, and blast out my student loan debt.  I have put together a simple payment vs. money saved chart as well that I will post below.  I have already thrown an extra 400 on the other day to pay off my smallest loan with a 4.5% interest rate, and saved $85 over the 10-year period.  Right on!  After my SL is paid off, I will consider purchasing a home, but only after a 20+% down payment is saved to eliminate the Mortgage Insurance cost.  Other than that, I will start maximizing my Roth contributions, match my employers 401k match (which should be 5%) and dump the rest into my own portfolio.  Things are looking up, potentially, if I get this job and am able to continue my savings without a significant stalemate of loss or money due to unemployment!

Here is the student loan table: (note that #’s are a bit off due to my new balance, and will continue to be, but they are close)

Balance – 28,181- 6% Interest
Default 10 Year Base: 312 / Mo (3,744/yr) – 120 Mo Length – 9,362 Interest
9 Yr – 338 (4,056) – 108 Mo (-12) – 8,360 – Save 1,002 (+312/yr pmt/ +1,002 total int saved vs. prev.
8 Yr – 370 (4,440) – 96 Mo (-24) – 7,371 – Save 1,991 (384 / 989)
7 Yr – 411 (4,932) – 84 Mo (-36) – 6,400 – Save 2,962 (492 / 971)
6 Yr – 467 (5,604) – 72 Mo (-48) – 5,445 – Save 3,917 (672 / 955)
5 Yr – 544 (6,528) – 60 Mo (-60) – 4,508 – Save 4,854 (924 / 937)
4 Yr – 661 (7,932) – 48 Mo (-72) – 3,586 – Save 5,776 (1,404 / 922)
3 Yr – 857 (10,284) – 36 Mo (-84) – 2,682 – Save 6,680 (2,352 / 904)
2 Yr – 1,249 (14,988) – 24 Mo (-96) – 1,794 – Save 7,596 (4,704 / 916)
1.5 Yr – 1,641 (19,692) – 18 Mo (-102) – 1,357 – Save 8,005 (4,704 / 409)
1 Yr – 2,425 (29,100) – 12 Mo (-108) – 924 – Save 8,438 (9,408 / 433)

Current Payoffs:
365.54 on Direct Loan Sub @ 4.5% Interest – Total 10 yr savings: 89.02

Cheers everyone, and thanks for viewing.  Feel free to comment if you’ve had any situations like this, or any other relevant helps or info on paying off student loans!

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