I would reduce the 7% loan on the car by cutting discretionary rather than cutting the IRA contribution. Using the taxable account to reduce the loan on car is not a bad move but consider that only after you have another way to get 3 months living expenses if neededThere are some really insightful thoughts in this thread.
I really appreciate everyone's critical analyses and positivity.
I've read each of your replies.
The consensus agreement seems to be:
1. get a roommate or marry a rich/smart girl
2. sell the car
3. relocate back to LCOL, find a new job
4. endure the labor for the sake of a 7.5% employer contribution and slowly keep moving in the direction that I have been
5. increase my value to current employer; need 1.5x current salary to live comfortably here
6. align my career goals with my lifestyle choices
7. Do a better calculation on tradeoffs between cost of living, salary, and location before moving somewhere
8. My budget is on fire but I can still (barely) survive at my current pace
I'm going to hang on to the car (at least for now).
I'll be looking at other job opportunities in low cost of living areas; the combination of this salary/location is not suitable for purchasing a home which disagrees with my long-term lifestyle goals.
I'll look for a second job
Would this be a mistake?
rollover the tax deferred to a Roth, then withdrawal the contributions, not earnings (~11k)
Empty the taxable (10.5k)
Move 2026 IRA contributions to car payment, skip investing any money in 2026(7.5k)
Make monthly car payments to the end of 2026 (7.2k)
I could pay the car off in one year with this method, and invest ~1200/mo. thereafter while qualifying for the employer contribution.
(7.5k)Roommate in VHCOL should reduce your housing expenses by 50%
But while this is going to improve your financial situation, it will not make a huge difference. For that you need to find a way to make money outside work
Statistics: Posted by av111 — Mon Oct 20, 2025 8:04 pm — Replies 31 — Views 4424