‘I make about 100K a year and have been for the last 3 years’: I have student loan debt and $16K in my checking account. How can I optimize my finances for the future?

Dear Money Minder,

I’m 30F and in need of some finance advice. My income is about 100K a year now, but that was after years of surviving on a much lower income during my residency and grad school days. My only debts are student loans, and they’re a whopping $300k (ouch).

Here’s how my money looks right now:
– Checking: 16K
– Savings (HYSA): 25K
– Roth IRA: 40K (maxed out for the last few years)
– 403b: $43K (7% of my own cash going in, with a 6% employer contribution and another 2% match per payment)
– Individual brokerage: $42K (I auto-deposit $1000/month)

I’m just paying the minimum on my student loans and aiming for PSLF in about 5 years. But I want to make sure I’m on the right track for the future. What else should I be doing to set myself up better?

Thanks from the Seeker of Financial Wisdom.

Response from THE MONEY MINDER:

Hello There,

Hi there, it sounds like you have done a great job managing your finances given your current income and background. Firstly, congratulations on your achievements post-grad school and residency! Your dedication to maxing out your Roth IRA, contributing to your 403b, and building up your savings and individual brokerage account is commendable.

Given your substantial student loan debt and your commitment to PSLF, it makes sense to continue on this path diligently. However, one thing you could consider is increasing your contribution to your 403b if possible, since employer matches are essentially free money towards your retirement. Additionally, with your checking account balance of 16K, you could evaluate if you need to keep that much in liquid cash, or if you could move some of it to investments or paying off your student loans faster.

In terms of your student loans, if the possibility of PSLF being eliminated worries you, it might be beneficial to also explore other repayment strategies to potentially pay them off faster. Refinancing at lower interest rates could be an option to consider if it aligns with your financial goals.

Overall, it seems like you are on the right track, and being intentional with your financial decisions will pay off in the long run. Keep up the good work and continue to stay proactive in managing your finances. If you have any specific questions or need further guidance, feel free to reach out. Best of luck on your financial journey!

Farewell from THE MONEY MINDER.