Here’s How You Can Plan And Pay Off Your Student Debt In Few Years
Turning 30 is a pretty big milestone. When you turn 30, you start experiencing to settle down, start a family, and climb up the success stairs at work. But for some people, some people are worried about just paying up their student debt.
Please see several videos: Creative Ways to Reduce Student Loan Debt:
A person we interviewed told us she had $80k debt in student debt by graduating. Ever since she has allocated a thousand dollars every month towards the debt, half of the debt is already paid. When she turned 27 years old, she decided to pay the remnant of her debt ($40,000 at an interest of 6%) in three years, given that now she has job stability.
A quick calculation revealed, she needed to allocate $1300 towards his debt to reach his goals. It meant she somehow needed to save another $300 for her loan. After a thorough evaluation of all the expenses, she picked areas where she could relocate funds and started her crusade to save extra money.
Cutting Up On Makeup Money: saves $20/month.
You can save money you spend on makeup by making sure that it lasts longer.
Don’t give in to your impulsive buying; buy only the stuff you need. When your product is about to finish, you can scrape the remnant of it from the bottle by using a tool of some kind.
Try getting your hands-on free samples; if not, try availing of an offer or a discount. Many websites offer amazing deals online. When your main bottle runs out there, you can use the ones you got as free samples.
Be Sure Not To Overspend On Drinking: saves $40/month.
If you drink wine in New York City, a single glass can cost you $10, which is $40 in a month. By avoiding drinking at happy hours or dining in BYOB restaurants, one can save as much as $40 each month. It is limited to drinks and bottled water, too; you have to start relying on tap water to quench your thirst.
Surviving on necessary Groceries: saves $60/month.
She used to buy lunches costing $10 to $15 at work, and buying it multiple times at work can really up expenses, along with the regular groceries for which she had paid $120. She reduced her food budget for the month to a mere $80 to $100. She had done it in two ways:
Firstly, getting lunch at the office was no longer an option, and she only bought only what she was going to eat. She kept pre-chopped avocado, romaine, carrots, and cucumber to eat as a salad at work or using packed easy to make soup. She had sweet potatoes, veggies, and chicken for dinner. By constantly checking on how much she is spending, she came down to $15 a week on food.
She is lucky to have free food around and at work constantly, and eating the free food available helped her save a lot. She ate porridge or yogurt for breakfast. She doesn’t put down any opportunity to eat free food, which is sometimes ample to skip the dinner. Her budget includes her food in the pantry, which she hasn’t eaten. She goes out for grocery shopping only when it is necessary.
Since food is what most people live for, and she is one of them. She felt very nervous at first and doubted if she will ever be able to achieve it. It was challenging for sure to limit your purchase based on a small budget. She realized how much she used to spend on junk food and unhealthy items, which she never finished. She learned that it is efficient to buy little, utilize it all, and then go to the grocers for more than to buy all in bulk and let the food and money get wasted.
Cutting Down On Spending Wherever Possible: saves $50/month.
Accommodation in New York is expensive; she used to pay $1350 rent for her place, she realized she could cut down on it and save a few bucks. When her lease is over in October, she is considering moving to another place where she will have to pay $1000. This meant moving away from the city, increasing her commute time (currently 20 minutes) by 10-20 minutes. She will have to stay and deal with roommates, but the money she will save to put towards her loan will make it all worthwhile.
Since everybody can’t afford to move out of their place, you can try cutting down other expenses. She negotiated her gym membership with her gym manager and reduced it to $40 from $80 per month. She practically negotiated with him and told him she compared the rates with several gyms, and she wouldn’t be there for the most of sessions, so $40 was a pretty reasonable price, and the gym manager agreed to her.
She gave up her cable subscription, too, because Netflix is chill!
Side-Hustling: Money Earned $200/month
Doing something on the side to earn some extra bucks is a prevalent trend of today. Since she enjoys writing, she will try freelancing and make money by giving ample time to learning a skill. She also explored making up for friends, selling dresses, tutoring, animal sitting, and babysitting.
Using Credit Cards To Earn Rewards
People can get $40 from the card she uses for her spending. Using a credit card responsibly and paying the balances right away does the trick. Using her card consistently will give her extra benefits like an air ticket to an event, which otherwise she would have to pay out of the money she has been saving towards her loan.
The basic 3 ideas to reduce student loan debt are:
After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management.
At Promtfinance.com, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification.
Read more on Daniel Smith's biography page.
Contact Daniel: daniel@promtfinance.com