What to do with my savings

[laulee]

So I have 18k saved with my credit union and an additional 3k sitting in stocks (mostly ETFs with some large tech companies). Ive been working in my industry for a little over a year and I make ~85k.

I still live at home with my parents (24 y/o) and I’m saving for a house but I’m not in a rush given current rates and my parents being very easy going and pleasant to live with. I also have 19k in student debt and easily make payments/pay extra every month.

My question is does it make more sense to

a) Make a massive (>90%) payment towards student loans and just eliminate them as quickly as possible. Or,

b) Continue making student loan payments and saving towards a house at the same time.

Any advice is welcomed and appreciated.

 

[addraornun]

@laulee It’s up to you. My personal answer would depend on the interest rates and house buying timeline and a bit on my personal tastes for level of debt I hold

Either option shows an inherent desire for good money management so you can’t really go wrong with your choice. One will end up optimal but both are fine

 

[laulee]

@addraornun The rates on the student loans range from 3.75 to 5.5%, and of course the 5.5% is also the largest one (about 5k) lol.

But you’re right there’s much more of a personal choice here with my own home-buying goals that are hard to measure. On one hand homes are great investments but timing is tricky, and on the other student debt is just a savings drainer so why not eliminate it now before the interest really takes hold. Both options are probably fine but one may be slightly better, hard to know for sure until I pick one.

 

[addraornun]

@laulee Hybrid options exist too. You could knock out the 5.5% one and put the rest in a HYSA if the interest is more than 3.75%. That way you’re not losing any money to interest technically. If the rates change, you can always adapt