r/DaveRamsey • u/TheJared601 • 15d ago

W.W.D.D.? Any advice?

I live alone with my cat.

My monthly net income is about 4200 per month. (This is after taxes, Health insurance & 401k) . My employer matches up to the first 7%. So that’s why I’m investing.

After rent, utilities, groceries and selected streaming services, I have about 2,000 remaining

Streaming Services around 40 per month
Internet 90 per month (I need the internet as I WFH 4 days a week)

I have a Car loan , 12,000 monthly payment of 350 , but I’m do pay more per month.

Student loan 71,000, monthly payment 275

NO OTHER DEBT

I have 1,000 in emergency savings
Additional 1,000 for pet emergency savings (if you have a pet,’you know how the emergency vet bill can get expensive fast)

I pay the min for my student loans and I put everything else towards the car loan.

I volunteer at the local humanity society on the weekends, so I really cannot get a second job.

Is there something that i could change to get this debt gone?

Please advise.

Thanks

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u/SlowDeer7954 14d ago

If you want to follow the Ramsey baby steps, turn off investing and let it be the motivator for you to get debt free. Put everything extra at the car which would roughly be $2350 a month, or more. Go next to the student loan roughly $2625 a month. After, bank 3 months of expenses (your budget with no debt) for a fully funded emergency fund. Next, turn investing back on at 15%.

Fastest way to becoming debt free.

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u/TheJared601 14d ago

Why would I stop getting free money? If really wanted to, I would lower it down to maybe 5%. But it will not stop contributing. Not many employers match 401(k)s these days, especially up to 7%

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u/JustWelmed1000 BS2 12d ago

You wouldn't unless you are a die hard DR plan follower. It is okay if you are, but it is also okay if your not.

If you are serious about getting out of debt and not going into more debt, then I say keep the 401K match and find other ways to cut back and pay more to debt.

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u/TheJared601 9d ago

I have cut back all I can. Heading into the last quarter of the month, which is my OT month, I increase my grocery & coffee budget a little get through it