u/kittiwake-ocean

Hi!

I'm thinking of pulling this move in the next week. I feel OK about it but at the same time, it is still a LOT of money for me... so I was hoping to find moral support in my thoughts or maybe if you know better ways to go about it/suggestions:

I have $40k in my High yield savings account. I stacked it up because I live at home ($0 rent) and I was planning to make a big move across the country which would have cost me a lot between the car road trip, moving belongings, and the cost of apartment rent/deposit etc.

However, just as I was about to start the move, I was offered a local studio apartment local where rent will be $900 flat and doesn't require a deposit or any extra costs. Okay woahh super awesome - I'll just not move all the way across the country then, and save that extra money. I accepted it and I'll start paying & living at the local $900 apt in June.

So now, instead I'm thinking of maxing out my roth IRA (I am currently employed and have made more than 7.5k this year so I qualify to max it) but I also have about 57.5k in student loans which range from 4-5%. I was thinking of throwing $7.5k from my HYSA at my student loans to get it to an even number of 50k to save me from paying more on future interest. My student loan minimum payment is $124/month but I try to pay $300-400/month.

The math adds up like this:

Starting amount $40,000 (HYSA earning around 3%)

Contributing $5100 to max the rest of my roth IRA

Contributing (approx) $7500 to my student loans

So I'd have about $27,000 in my HYSA

I only earn about $36k a year. My family wasn't very financially savy so I'm learning financial literacy for myself and wanted to check in what others thought about this choice. I feel like its a decent but a $13k decision is a big decision for me (more than 25% of my HYSA account!) and my student loans kind of scare me. My student loans being 4-5% is what is also throwing me when I look at financial advice online, they always say leave the 3% stuff at minimum payment and pay extra on anything 6% or more. But bruh my loans are in the middle.

For a brief background, also I do have an ira account where my employer matches, a car I just paid off last year, and I'm 28 yrs old. Just tired of living at home and being in student loan debt but also want to be investing for my future, enjoying life, and making smart choices.

Thanks