mickeyd said:
You are obviously doing something right today and obvoiusly got yourself into a bit of a jam (-$38k jam) during a previous period.
Ya know, I don't think my jam was so bad compared to many people my age. At the height of my debt, I had 33k for student loans, 15k on my car, and 3k on my credit cards. The student loans were worth every penny, as at every job I've gotten, I've been told my alma mater was one of the factors in the decision. The car was probably not the greatest choice, as I could have gotten a used one. But I did need a car, and I didn't buy a very expensive car. The CC debt was leftover from college, which was a whopping $8.7k at over 10% in 12/02
The real difference in my bottom line is that back then, I had 10k in the bank. Now I'm closing in on 40k.
thefed said:
I'm guessing you have a HEFTY salary (compared to em at least!)....esp if you paid down 38k in debt in one year.
Some would say my salary is hefty, but a lot of the "some" also do not LBYM. Last year I made 68k. This year is going much better so far, but I am currently in a contract position that may not turn into a permanent one if the team I'm on doesn't have a spot.
So my salary certainly helps, but the real reason I was able to make such progress is because I save about 33% of my gross. This, above all else, has really allowed me to make those strides. Especially since my salary will most likely drop in the next few years based on some other factors in my life.
I have a good friend who has comparable work and salary history to me. When we both broke the 60k mark, he bought a 300k condo and a 40k car. I stuck with a 2br apartment with a roommate and my 15k civic. His 4k tv and custom tailored shirts are certainly nice, and he has found a nice way to pay half the taxes that I do, so I guess I'll know in a few years which approach was the wiser
