Should I use supplemental income like RSU to pay off debts and be more financially independent?
I’m in my mid 30’s, no kids, and have a significant other with a non-tech income. We have recently begun sharing expenses, which is good because I’ve maxed out my 401K contribution and so I’m making less per paycheck. To give myself some extra cash each month (~$300), I decided to sell some MSFT stock ($7K worth) and pay off the remainder of my student loans ($7K) a few years early.
I want to be able to have more control over my savings and investments, which to me has always meant ice any recurring debt that I can and keep more of my earnings in my pocket for savings (especially for purchasing a home or funding emergencies down the line).
I’m now thinking to myself that I could do the same with my car. I have about $5500 left to pay on it, and this would put another $350 into the bank per month. Car is 2014 Ford Focus (38K miles) which I may have better leverage trading in down the line if I don’t have negative equity. Additionally I only drive once a week or so and as such not putting too many miles on the car.
Has anyone else done this? Has it helped you take better control of your savings and achieve financial goals? MSFT has been up lately, so seems like a good time to sell. I still have more refreshers coming, so those options will vest in the coming months.
L63. 7 Yoe. TC: base is $165K RSU $57K (RSU awarded last year and still have on-hire vesting each year).
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Sure, Oracle doesn’t pay much, but my only monthly expenses are food, property tax, garbage, fuel, and maid service. Bought solar panels a few years ago to eliminate the monthly power bill. Water is from a well. I pay cash for a car when I want one. I don’t need the job and don’t have to take shit.
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Btw, your TC of $222 at L63 in MSFT is for SDE role?
If you get caught in a layoff, having a low burn is great.
In short, if you think you can do better in investment market than that apr, then keep the money. Oh, don't forget the capital gain tax.