Recently I have had some serious low blows in terms of keeping motivated during debt payoff. Things just don’t seem to be going my way and it’s making it hard to stay motivated. I’m extremely stressed at work this year, which is making me extremely tired. This then makes it hard to get myself to all of my side jobs in the evenings. I recently tried refinancing my student loans only to be told I have too much debt. Why thank you sir, I’m aware I’m drowning in $156,000 in student loan debt, but do you see that I’ve paid off $44,000 in 14 months?! I feel like my life revolves around my student loans and it’s been incredibly hard for me to keep pushing myself recently, especially after being told I can’t refinance because I have too much debt. However, there are some ways I do motivate myself when I feel like giving up.
Focus on your accomplishments.
The first thing I always do when I feel unmotivated is look at how far I’ve come in my debt payoff and remind myself I’m doing everything I can. I look at my monthly payments that I’ve made and see how much they have increased over the last 14 months. It’s important to acknowledge and celebrate the big and little victories in this long journey. I celebrated paying off my first loan this past year and celebrated breaking into 5 figures for my private loans. It’s important to do that to make this journey a little less overwhelming.
Recognize the sacrifices you’re making.
When I’m feeling unmotivated I remind myself about all the sacrifices I’m already making for my debt payoff. I remind myself that I’m already doing so much, I don’t need to do more than I’m doing right now. I work 4 jobs currently, live with my parents, and budget my spending each month. For my sanity, I need to remind myself that it’s enough, I can’t do more than that.
Find others who are going through debt payoff.
By far the most motivating thing for me to do is to head over to Instagram and Pinterest and find others who are working on their debt free journey. I find it so motivating to hear other people’s debt free stories and how they got to debt freedom. It can be hard to find people around me that can relate to my situation and want to pay off their debt, which is why the Internet can be a wonderful thing.
I hope these few things can help you when you’re feeling down on yourself about your debt payoff. I know it has helped me when I feel like I’m never going to finish paying this debt off. What are some ways you keep motivated when you feel like giving up?
Debt payoff can be tricky, especially when you’re on a pay schedule that doesn’t provide you with a paycheck every month. However, with some planning and budgeting, it can be easy to get around this problem. I’m a teacher and am on a 10 month salary, meaning I don’t get a paycheck during the summer months. But I was still able to make extra payments on my student loans in the month of July, with no paycheck from school. Continue reading to find out what I did to lower my debt by over $4k in the month of July.
Plan for the Months Ahead
It’s so important to plan and budget in order to make your debt payoff plan work for you. My monthly minimum payment is roughly $1,500 for my student loans, so I knew I needed to set aside $3,000 for my loan payments in July and August. This way I knew I had enough budgeted for at least my student loan payments in case I wasn’t able to find a job over the summer. So, $3,000 spread across 10 months is $300/month, it really wasn’t bad at all.
Find Side Hustles
Side hustles are the best thing ever. It’s always exciting to make extra money to put towards your debt. I know, that sounds crazy, but I seriously get a rush of excitement every time I make an extra payment and lower my daily interest I’m paying. I’m pretty sure these loans have made me a little crazy ha! But, I do after school tutoring at school during the school year and tutor local kids over the summer. I have also found a wonderful family to babysit for this summer.
I ended up not even needing that extra money I saved throughout the school year, as you can see from my July loan payment. I easily made my minimum payment of $1,500 and was able to payoff much more than that. It’s amazing what you can do with a little planning ahead 🙂 What have you done for your debt payoff on an unpredictable pay schedule?
One of the things I always read about on personal finance blogs was to financially prepared for the unexpected. You never know when something is going to happen that’s going to rock your budget and make you frantically scramble thinking how you’re going to afford this. This happened to me when I realized I broke even on my budget, before I even applied my extra student loan payment I make each month. Life throws curve balls at us everyday and it’s important to be financially prepared for them so they don’t hurt us as much.
June was an interesting month for me. I had two large unexpected expenses that basically was my entire extra student loan payment I plan for each month. The first one was my new teacher mentoring fee that goes to my mentor teacher, $550. The second was when I brought my car in for an oil change and they told me I needed all new brakes and two rotors replaced, see ya $955. The second was completely unexpected, and what really hurt my budget. I take my car in for it’s oil change and they always inspect the brakes for me. Everything was fine at my last oil change and suddenly 4,000 miles later, new brakes and rotors are needed.
This was hard for me and made me make a tough decision. I could either make my extra loan payment for June and pull the money from my savings, or not make my extra loan payment and not need my savings. My immediate reaction was to make the extra loan payment and pull from my savings because of my aggressive goal to payoff my loans by the time I’m 31. I looked at my savings and realized even if I did pull that $1,500, I would still have enough in my savings to last me a couple of months.
This made me decide to make my extra payment to my student loans in June. When hit with the unexpected, you need to closely look at your goals and decide what is most important now and for the future. For me, paying off my student loans as soon as possible is my most important financial goal. How have you planned for when unexpected expenses come up?
It might sound crazy that a girl trying to save money and pay down a ton of student loan debt pays for a gym membership. I promise you, that wasn’t part of the original plan I had. When I was planning for my debt payoff while still in graduate school, I planned a strict budget. One that definitely didn’t have a gym membership on it and didn’t have me buying all organic food, but that’s for another time. I told myself I’d work out at home and run outside when I didn’t have the luxury of a free university gym membership anymore. But then reality hit.
No Gym Membership at Home
I moved home and started to stick to my strict budget that I had made that worked well when I was in grad school. The major difference was that I no longer had a gym membership and I was no longer paying electric, rent, and utility bills each month. This was a huge savings for me. However, the no gym membership really hit me. I strive to be as healthy as possible, not only for my health, but also for my wallet. I have found that by paying a little more for preventive care (well visits, working out, organic food, etc.) I have saved a ton of money in the long run. Since changing my lifestyle to a healthier one, I very rarely get sick and very rarely need to take medicines. This all saves me a ton of money overall. I found myself not being able to motivate myself to work out at home, which is when I started researching.
Finding the Right Gym Membership
All the gyms by me cost about $50/month plus all of those lovely fees they add on, no thank you! I couldn’t justify spending that kind of money to work out. I didn’t want to go too far away because I knew I would never use it if it was. So I began looking by where I work, and I actually found a reasonably priced gym for $20/month. Before I signed up I asked some friends and read some reviews and found that they run promotions all the time for discounts when signing up. So, I waited. And waited. Finally, they had a promotion for $0 starting fee, I was sold. I went in and joined that day.
Unexpected Free Gym Membership Perks
Shortly after I joined the gym I began working. I was very overwhelmed by the beginning of my first year of teaching, but determined to get to the gym every day I could. I’m proud to say in those first few months I did go to the gym most afternoons. Then one day a teacher at school told me about our insurance giving reimbursements of $20 for gym memberships, if we went 12 times a month. It’s part of their preventive care. I signed up that night and my workouts started being tracked. This pretty much makes my gym membership free now, except for the annual fee the gym charges me.
If you’re someone that wants to join a gym, but can’t justify paying for it, do some research and see what you can find out there. It seems that a lot of insurance companies that I have looked into offer this in their plan, there are usually rules, like my 12 visits, but they’re giving you money to work out! It makes me excited just typing it! I need the gym to keep me motivated and healthy, it provides me with a great stress relief too. How do you make sure you keep active?
I know, you’re probably thinking, this girl is trying to pay down a MOUNTAIN of student loan debt, why is she spending money on things?! Until about a year ago, this was exactly how I thought. When I finally realized just how crazy my student loan debt was in September 2014, I made my budget completely bare bones. I cut out everything, I mean everything. I was living off of eggs and ramen, never doing anything that involved spending money, and wasn’t really thinking about my health. Until I realized I needed to make a lifestyle change in order to save money in the areas I thought I couldn’t save in, like doctor’s office visits, medication, etc. I have some pretty horrible sinuses that have caused me a lot of problems throughout my life, one of the biggest being how much money it costs to help me live day to day. These are the things that I splurge on each month, and in return I am living a much happier, healthier life:
#1 Organic Food
This was a huge decision for me. Organic food is expensive and at first I couldn’t justify spending that much money on food. But, I started searching the Internet for ways to deal with horrible sinus problems, and most of them repeated the same things. A diet that consists of organic, healthy foods and minimal dairy. I made the switch to see if there was any difference, and I haven’t gone back since.
#2 Gym Membership
Working out and being more active was part of my new lifestyle I was trying. When I was still in grad school in September 2014, this wasn’t an issue for me. As a full time student, I was able to get into all of the university gyms. However, when I finished my degree and moved back home to pay down my loans in July 2015, this became I huge issue. I told myself that I would work out at home and run outside, but that never happened. I decided to try out a gym because I thought paying for it would motivate me. It definitely has. If I’m paying for it, you can guarantee I get my butt to the gym whenever possible.
#3 Being Social
Now, I’m not saying I go crazy and spend a ton of money each month doing things. However, when I was in grad school, I didn’t do anything because I wanted to push as much money as possible to my debt. I was miserable and missed out on a lot of fun times with my friends because of it. I realize now that it’s more important to spend a little more money doing things with the people you care about, than to be alone.
These are three of the things that I have chosen to splurge on while paying down my debt because it allows me to be happier and healthier. Since switching my diet and being more active, I rarely get sick and have been able to stop taking almost all of my daily sinus medications. Even though I needed to spend a little more money, I’m saving money in other ways because of it. What are some things that you splurge on?
Finding out my monthly student loan payment was eye opening. I was completely shocked. $1,400/month for JUST my private loans, not even my federal loans. How was I going to afford this?! Especially when my federal loans were out of the grace period, which hasn’t even happened yet. The first step was to create a plan to tackle this absurd amount of student loans. Once I knew I could afford my required payment, I had to find ways to make my additional payment as large as possible. My teaching job just wasn’t going to cut it for me and my goals for paying off this student loan debt.
Multiple Streams of Income
One of my biggest strategies for paying off my student loan debt is to make more money through multiple streams of income. This will then allow me to make a larger student loan payment each month. My goal is to create as much passive income streams as possible, I’m not there yet, but I hope to be soon. For now, my income streams are my teaching job, after school tutoring at school, private tutoring, babysitting, and (hopefully) this blog. I strongly recommend you find ways to make more money if you are buried in student loan debt, like me.
There are so many ways to make extra money, but it needs to be worth your time, especially if you are working a full time job. For me, I wasn’t sure I had the time to do all these side hustles, but the amount of extra money I make really motivates me. I find the time to do these extra jobs because the money is worth it. I wouldn’t do just any job after my normal work day, the money needs to be worth the time I’m putting in.
One of the worst parts about side hustles is that the money usually isn’t consistent or guaranteed, which is also one of the best parts about it. This income changes month to month, meaning it can less or more each month. This makes it hard to budget for it. Personally, I don’t include this income in my budget, I pretend I don’t even make this money until the end of the month when I figure out my additional loan payment. All of my side hustle money goes straight to my student loans at the end of the month.
Here’s the breakdown of my side hustles currently:
-After School Tutoring: This is done through my school. I stay after 2 days a week for 45 minutes and work with a small group of students who are reading below grade level. Even though this is through my job, this is additional to my salary, so I count it as a different stream of income. This is roughly $200/month extra.
-Private Tutoring: I hope to get a few more students to tutor privately to really boost this source of income. Currently, this is about $400/month extra.
This is how I currently use side hustles to increase my monthly student loan payment. I hope to continue growing the amount of money I earn in side hustles and diversify how I earn the money. My goal is to find more ways to earn money doing things I love to do. What are your side hustles and how did you begin them?
I know when I first realized how much student loan debt I actually had, I got angry. Afterwards, I viewed it as a challenge and just wanted to tackle it head on, paying it down as fast as possible. I spent every spare moment I had in grad school searching ways to pay down debt quickly, save more, make more money, anything to get this debt paid off faster. I made quick easy changes that didn’t change my lifestyle, but made me save a lot more money. By making these changes I was able to pay down a lot more debt while I was in grad school making about $1,200 a month.
1. Plan your meals each week before you go to the store
Meal planning overwhelms me, I just don’t have the patient or the time right now to learn a good system for it. So, I don’t do it as well as I’d like to. But, I do have a plan for the week generally before I go to the grocery store and always have a list. This way I know exactly what I need to buy for the week and I throw away less food.
2. Pay attention to portion sizes
I buy mostly organic foods, which can be expensive. Especially when it comes to meat. I used to always eat an entire chicken breast for my dinner with a veggie. Not anymore. I eat about half of a chicken breast, depending on the size, with brown rice and a veggie. Rice is SO much cheaper than chicken, so this allows me to get two dinners, sometimes three if it’s bigger, using one chicken breast.
3. Baby wipes
I can’t even put into words how wonderful these little wipes are. I used to spend a ridiculous amount of money on make up removing wipes. Out of pure convenience, I just couldn’t give them up when I started trying to save more money. When I found out that baby wipes work in the same way, I had to try it. I have very sensitive skin and using the sensitive skin fragrance free baby wipes I had no problems.
4. Sign up for store rewards cards
The best one I have is Rite Aid, I currently get 20% off everything in store because my family shops there so much. On top of that, I switched to using all store brand products and those usually have an additional discount. For me, this works for my budget because it is so convenient. I wish I had the time to make my own products to use because it would be even cheaper, but being a first year teacher makes my time limited!
5. Waiting to buy
This one was very hard for me at first. I can be stubborn and want to get an item right away. I quickly realized that I was missing out sometimes on great sales or realizing that I didn’t actually want what I was buying afterwards. Once I started waiting to buy, I saved so much money because I was no longer impulse buying. If I still wanted the item after doing all my research and finding the best deal, I went ahead and got it. If I realized it wasn’t what I wanted, then I saved myself the wasted money on something I didn’t actually want.
These are just a few tips that I have been using to save money that I find to be very simple changes that made a difference in my budget each month. The easiest thing to do is look at your spending habits and find ways to make slight adjustments or ways to make what you’re currently doing cheaper. What are some ways that you save money?
So, the day finally arrived that I had been anxiously waiting for, my first student loan bill arrived in the mail. I just finished my graduate studies in August and knew it was coming. My private loans did not have a grace period, so I assumed my first bill would most likely be due by November. Sure enough, my first payment is due November 2nd. Before I got the bill, I wasn’t sure how much my payments were going to be each month. I guessed that they would be around $1,500 a month because that’s what my sister pays with a similar amount of debt. Of course, I budgeted for the worst and went for $2,000, since I went to grad school. It turns out all the debt I paid off during grad school was worth it, my private student loan payment is $1,400, much less than I thought it would be. My federal student loan payment was originally $600 each month, but I switched to an income based repayment plan and got it lowered to $250. It was a tough decision to switch to a different payment plan, but I wanted to be able to put as much money to my private loans, since they have much larger interest rates.
Where to Begin: Get Angry
Like I have mentioned in previous posts about my amount of debt, when I first really acknowledged the amount of debt I had, I felt like I would never be able to pay that off. I mean, $200K is a massive amount of debt. I don’t want to be paying this off still when my children are starting college, which is what will happen if I stick to the 30 year repayment plan. Honestly, that’s what really lit the fire under my butt, knowing I wanted to buy a house, have kids, send them to college, things that will be much more difficult if I have this massive amount of debt looming over my head. Plus, who wants to be paying off their student loans at age 50, definitely not this girl. Get angry at your student loans, put things into perspective and get crazy mad at that large sum of money that is preventing you from doing more things and saving more money. And just think about how nice it will be once it is all paid off 🙂
Create a Plan to Payoff the Debt
Once you have reasons to motivate yourself to payoff your debt, create a plan. Some people need to use the snowball method because they need motivation in the beginning to get going. Others think more long term and prefer a method that allows them to save the most amount of money, or the avalanche method. Personally, since I have such a large amount of debt, I’m thinking long term and how I can save the most amount of money. So, I’m sticking with the avalanche method. This means that right now I am focusing on one of my debts that has a 8.05% interest rate and started at just above $40,000 (I’m proud to say that this debt is now at $12,000 after chipping away at it for the last year during grad school, WOOHOO!!!). After this debt is paid off I will move onto my next largest interest rate and so on. If two loans have the same interest rate, then I pick the loan that is largest amount. I strongly recommend using ReadyForZero, I basically swear by this website in my debt payoff. It does take some time to type in all the information each month, but it provides me with a graph of my progress and when I’ll be debt free. Also, it’s completely free and has an app that allows me to check my progress wherever. I find it extremely motivating to see my daily interest go down after I make all my payments each month and to see how much sooner my debt payoff date is.
Update June 2016: I officially paid off that first loan!!! This means that I have now moved onto my next focus loan, which also has a 8.05% interest rate, but it is much smaller, only $16,000. I plan to pay this one off in one year, June 2017.
How Much to Pay Each Month
It can be difficult to decide how much you can afford to pay towards your debt each month. I strongly recommend paying extra each month, any extra money you have, even if its $20, can make a difference in your debt payoff date. For me, I can afford my required payment in one paycheck, so I pay my bill on the 15th, when I’m paid. I never budget for my additional payment. This may sound odd to some people, and for a lot of people this might not work. However, I am currently in a very different situation than most. After I finished grad school, I moved back in with my parents in order to really tackle this debt, and they live 20 minutes from my job. This means that I don’t have many bills each month. Also, I work other jobs each month, like tutoring and babysitting, that make my income vary month to month. I do budget for gas each month, my bills, my 2 savings account, and my 403b account. You’ll notice that I do save each month, it’s not much, about $250 across the 3 accounts, but while I’m living with my parents I want to make sure I’m saving some money while I can. Since I pay my bill on the 15th each month, this allows me to make my additional payment at the end of the month when I am paid again. This is when I go through my budget for the month and see how much money I have left over that can go towards my debt. I hope to be able to pay an additional $1,000 each month.
Update June 2016: Since writing this post my monthly payment plan has completely changed, I found ways to make it much more aggressive. I made it a goal for myself to pay off all my student loans before I turn 31, that’s in 7 years. So, I went to my ReadyForZero account and changed my debt payoff date to determine what I would need to pay each month to pay it off by then. Turns out an extra $1,000 allows me to be debt free by my 31st birthday. I’m currently paying at least $2,600 each month with my teacher salary, living at my parent’s house (thanks Mom and Dad!), working extra jobs, and lowering my savings withdrawn each month. Instead of $250 I only put $125 into savings each month so that I can focus on my student loans.
This system might not work for you, but it’s what is working for me and my current situation. If I wasn’t living at my parent’s house, I don’t think this system would work for me since I probably would not be able to afford paying my entire bill in my one paycheck. What’s your debt payoff plan? What strategies have worked for you?
When I first decided to start budgeting about a year ago, I felt very overwhelmed. I searched through Pinterest and the Internet, and it seemed like such a daunting task. I knew I needed to start budgeting in order to take control of my student loan debt. What I quickly realized was that budgeting needs to be personal. One way might work for one person, and it might completely fail for someone else. You need to find the method that works for you, and stick to it. This is the method that I have found to work for me. It’s important to note that I have my salary that I can count on every two weeks to be the same, but I also have other sources of income that are not consistent (babysitting, tutoring, etc).
The Tools I use to Budget
–Mint– I love this app. It makes my life so much easier when it comes to budgeting. When I first started budgeting, I took a month of expenses and figured out where my money was going. This was eye opening for me. I was spending so much money going out to eat it was absurd. It’s so hard to realize those little purchases out to eat here and there really add up. Once I started using Mint, I could very easily see where my money was going, and how much my purchases were adding up. I made my budget in Mint, and I can easily see how much I have spent in each category and how much I have left in a specific category.
–Debit/Credit Card– I’m not a cash person, especially once I started using Mint. This definitely won’t work for everyone. With my looming student loans, I am very disciplined in paying off my credit card bill each month in full. This allows me to get the cash back from my purchases, and not pay the interest. If you’re someone that can’t pay off your credit card bill or will spend carelessly on it, don’t open one. It’s not worth it.
–Income Spreadsheet– I found a wonderful Excel spreadsheet on Pinterest to track my income each month. This is handy for my extra income I make through my side jobs. The spreadsheet allows me to track each stream of income separately and then automatically adds up the different sources together for each month.
–Student Loan Binder– I use my student loan binder to track how much money I am putting towards my student loans each month. Each month my extra payment is different, so it is important to keep track of how much went to my loans every month.
How I Budget Each Month
Since I am living at home rent free, I don’t have very many bills each month. I basically just have my student loans, and credit card bill. The first thing I do is budget for my required student loan payment, my credit card payment, and $100 to my savings and investment accounts. The amount you put aside for savings is really up to you. Ultimately I would love to put more than just $100 into each of my accounts, but right now I need to focus on my student loans. You should know that during grad school I made a huge effort to build up my savings before dropping to just that small amount. Then, I have all my expenses each month, groceries, gas, etc.
Once I have all my bills paid and it’s the end of the month, I figure out what my additional loan payment will be. Since I have extra streams of income, I don’t exactly budget for my additional loan payment. I put whatever extra income is leftover at the end of the month towards my student loan principle. Since I budget every other part of my income, I always have extra money at the end of the month to put towards my loans.
The biggest thing I learned when I began budgeting was that you need to put your money to work. Your money shouldn’t just sit in your checking account it needs a job. If you budget every penny of your income, you’ll be surprised how much money you truly have and how you can change your spending habits. How do you budget each month?
Ever since I can remember I have dreamed about having my own classroom someday. As I worked through my undergrad program, that dream seemed to be getting closer and closer. Just thinking about it would get me excited to finally do what I have wanted for my entire life. But then reality came crashing down, teachers have to pay for their own supplies and books?! WHAT?! The thought of stocking an entire classroom library like the ones I had seen in my placements, made me sick to my stomach. How was I going to be able to afford all of those books?? Now that I am less than a month away from starting my first year, I have become very creative in my ways of stocking my classroom library with books. Here are some ways that I have found books for my classroom, for cheap!
1. Tell People You’re a Teacher
Seriously, whenever I am buying anything for my classroom I tell people I’m a teacher. Usually, they can tell. I mean come on, who else buys that many school supplies in one trip, or that many books in one haul. No one. Except teachers. I can’t say it has always worked for me, but sometimes there is a discount that I didn’t know about. The best place to tell people you’re a teacher is at garage sales 🙂
2. Garage Sales
I can’t tell you how much free stuff I have been given from people hosting garage sales after sharing with them I’m a teacher. They’re trying to get rid of their stuff, and I will gladly take it off their hands 😉 I’ve picked up school supplies, storage bins, children’s books, and so much more at garage sales. It’s such a great way to get things for so much cheaper. But, I’ll warn you, go in with a plan, know what you’re looking for before you get there. Otherwise, you’re aimlessly looking at stuff and the next thing you know you have a bunch of stuff you don’t actually need sitting in your house.
3. Ask Family/Friends/Anybody That Will Listen
I’ve had a lot of luck asking people I know for things. Everyone knows I’m a teacher, so whenever they are getting rid of things, they call me. I don’t always need or take the things they are offering, but when I do it’s always nice. A lot of families I know will get rid of the books their kids no longer read, I gladly take those off their hands.
4. Book Sale Fundraisers
This is my all time favorite. Last weekend there was a book sale fundraiser by my house. It was book heaven. I don’t think I can even accurately describe the scene that was this fundraiser. It was just that amazing. Imagine a middle school cafeteria with every table piled with books, and all the books being under a dollar. AND THE BOOKS WERE ORGANIZED BY GENRE AND SUBJECT. There was even an entire section for children and young adults, and within the section it was organized by grade level. It made my searching so much easier. I ended up leaving with 53 books for 53 dollars and it all went to providing kids with scholarships for college, I was so excited.
5. Store Sales, like Target
This isn’t my favorite one, but it did get me books for very little money. In the dollar area when you first walk in Target there are sometimes teacher stuff. One time I found some books in there that were a dollar each. I wouldn’t say it was great literature, but they were chapter books that my kids may enjoy reading. Additionally, I have a Target card, so I got an additional 5% off my entire purchase, which is nice 🙂
I’m still working on adding books to my classroom library, but this definitely helped me find way more books than I ever thought I would for the amount that I have paid so far. What are some ways that you stocked your classroom library on a budget? Share your tips in the comments 🙂