Should I Dump My Savings into My Student Debt?

Keep 3-6 months (or more if you need to, for me the number is 9 months) worth of expenses in an emergency fund. Put the rest against the student loan. The length of time depends on your situation. I have family, and work in IT. Changing jobs takes me longer, because .

.. reasons. Having less than 6-9 months of buffer means that I have to rush and possibly take a position that is not a good fit, or get behind on payments.So, set aside your emergency fund, add to it if you need to. Once it is fully funded, take the money you were using to fund the emergency fund and budget that to clearing student loans. Also, don't start new credit cards, and be sure to never carry a balance on them.I know it seems like a lot, but keep in mind that yours is small, and you'll likely be able to knock it out in a very short time.Edit (after OP listed expenses): Taking into account the expenses you listed, it looks like you have about 2000 per month in expenses (if you're in emergency fund mode, luxuries can wait, and you can tighten the belt on food, so go with the lower end of your estimate.

) Lets say you have 600 a month to work with. My suggestion would be bring savings up to $6000. That will take you two months. Then pay 850 a month to student loans. You'll be paid off in a year, and still have 6000 for emergencies.

Once you're done, you will have 850 a month to save and invest. With patience, persistence and care, you can start a nest egg that will allow you to remain financially independent. Search around for FIRE (financial independence, retire early) and other strategies for retirement savings and investing. Be sure to save for retirement. The worst inheritance to leave your loved ones would be to become financially dependent upon them in your later years. And watch out for credit, it's a trap

I've got about $5000 saved up in my savings account.

At the same time, I've got about $8500 left to pay off on my student loan, with all the interest that includes (6%/year, compounded monthly).

I want to pay my student loan off as fast as possible, and I have been considering just dumping my savings into the loan, either once the two equal each other, or immediately.

I'm not currently putting any money into my savings because I'm trying to pay off that loan first.

Alternately, I could dump some of my savings into the loan so that I'm not left without a safety net in case of emergencies - but I'm not sure how much I should reasonably keep in Savings for such emergencies.

FTR: Breakdown of my income/expenses. I have no other debt besides my student loan, and while I use a credit card, I use it only to make purchases I can pay for, and always pay off the full balance.

Income: $2900/mo

$1400/fortnight my income(ususally $2800/mo, steady job).

$100 Wife's income/mo (Not consistent - based on commissions)

Expenses: $2160/mo

$975 Rent/mo

$110 Elec/mo (higher in the summer due to air conditioning needs)

$75 Internet/mo

$160 Phone /mo

$500-600 Food/mo (2 people)

$100 set aside for luxuries/mo

$250 Student Loan Payment /mo

So, in short, should I dump some or all of my savings into my student loan, should I do it now or when I've paid off a bigger portion of that loan, or is this an entirely unreasonable plan?

Side Note: Since it's getting mentioned a lot, there are a few 'hidden' expenses that aren't being shown here because they get taken out of my paycheck pre-tax. There's $100/mo for 2 month-long bus passes, $185 for health insurance including dental (going independent right now would be insanely expensive, so we're planning to switch once my company's open enrollment starts) and 3% of my pre-tax paycheck going into a deferred compensation plan.

·OTHER ANSWER:

I've got about $5000 saved up in my savings account.

At the same time, I've got about $8500 left to pay off on my student loan, with all the interest that includes (6%/year, compounded monthly).

I want to pay my student loan off as fast as possible, and I have been considering just dumping my savings into the loan, either once the two equal each other, or immediately.

I'm not currently putting any money into my savings because I'm trying to pay off that loan first.

Alternately, I could dump some of my savings into the loan so that I'm not left without a safety net in case of emergencies - but I'm not sure how much I should reasonably keep in Savings for such emergencies.

FTR: Breakdown of my income/expenses. I have no other debt besides my student loan, and while I use a credit card, I use it only to make purchases I can pay for, and always pay off the full balance.

Income: $2900/mo

$1400/fortnight my income(ususally $2800/mo, steady job).

$100 Wife's income/mo (Not consistent - based on commissions)

Expenses: $2160/mo

$975 Rent/mo

$110 Elec/mo (higher in the summer due to air conditioning needs)

$75 Internet/mo

$160 Phone /mo

$500-600 Food/mo (2 people)

$100 set aside for luxuries/mo

$250 Student Loan Payment /mo

So, in short, should I dump some or all of my savings into my student loan, should I do it now or when I've paid off a bigger portion of that loan, or is this an entirely unreasonable plan?

Side Note: Since it's getting mentioned a lot, there are a few 'hidden' expenses that aren't being shown here because they get taken out of my paycheck pre-tax. There's $100/mo for 2 month-long bus passes, $185 for health insurance including dental (going independent right now would be insanely expensive, so we're planning to switch once my company's open enrollment starts) and 3% of my pre-tax paycheck going into a deferred compensation plan.

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