Browsing Tag

student loans

Ways_to_Keep_Motivated_During_Debt_Payoff
Student Loans

Ways to Keep Motivated during Debt Payoff

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.

 

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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_free_journey_update_36342_paid_off
Student Loans

Debt Free Journey Update: $36,342 Paid Off

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I graduated from graduate school in August 2015 with about $200k in student loans from undergrad and grad school.  My private loans went into repayment on November 2nd, 2015 and my private loans in March 2016. My debt free journey has been going on for exactly one year. I truly can’t believe it’s already been a year and I think it’s super important to reflect on my first year of repayment to see ways I can improve my current plan.

Amount Paid Off Including Interest This Year: $36,342.51

Total Principal Paid Off to Date: $37,264.73

Current Payoff Date: December 31, 2022

Debt Free Journey: How I Paid $36,342 towards my Student Loans in One Year

  1. Sacrifices. As a twenty something who recently graduated from grad school, the first thing I always wanted to do was rent my first apartment and start my teaching career. However, I knew that wasn’t the best choice for my current financial situation. Instead I found a teaching job 20 minutes from my parents house and moved back in with them. This was the biggest way I have been able to pay off so much in one year.
  2. Budgeting. This year I have really cracked down on my budget and tried to be very strict with it. This has helped me immensely to pay down my debt this past year.
  3. Side Income. This was huge for me this year. Throughout the year I managed to add 4 different streams of side income through 2 different after school programs, private tutoring, and babysitting. At this point, I am able to almost afford all of my monthly expenses, except my student loans, with my side income. This has been amazing for my student loans because my salary can almost all go to my loans each month.
  4. Debt Avalanche. Since I have such high interest rates, I have chosen the avalanche method. This allows me to focus on my highest interest, largest accounts first and then apply that payment to my next account. This continues until all accounts are paid off. This has been working out wonderfully for me. I paid off one account this year and was able to apply that payment to my next account making that payment even larger. This has helped my loans get paid off even faster.

Debt Free Journey: My Plan to Make Even Larger Payments

  1. Budgeting. I plan to look at my budget even more and find more ways I can save even more each month. I’m trying really hard to search through my house and use what I didn’t know I had before going out and buying it. For example, whenever I run out of my favorite shampoo or conditioner, my first thought is I need to buy that kind again. Now, I’m looking through my house and bathroom closets to see if we have any kind of shampoo or conditioner that I can use instead of buying new.
  2. Side Income. I don’t think I’m going to add any new streams of income, but I plan to do more within the streams I have. Right now, I only work 2 days at the after school program, but I’m planning to pick up any extra shifts I can and find more students to tutor and kids to babysit.

I’m very proud of myself for being able to make my money work for me and pay off so much of my student loans in my first year of repayment. My current goal is to finish paying off these loans by my 31st birthday, which would be April 29th, 2023, which means my current progress gets me paid off early! I’m so excited to improve my strategy and plan to pay off even more in the next year to pay off my debt even earlier! How much were you able to pay off in one year of repayment? What was your strategy?

Debt_Payoff_on_a_10_Month_Salary
Student Loans

Debt Payoff on a 10 Month Salary

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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.

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Debt Payoff

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?

Saving-Money-In-College
Money Management

Saving Money in College

I was pretty carefree with my money my freshman year of college. I didn’t think about my student loans, didn’t get a job, and just kept pulling money from my savings account. Not the smartest moves on my part, but you live and you learn, right? 6 years later, 2 degrees, and about $200k in student loans, I definitely wish I did a few things differently back then. Don’t make the same mistakes I did, think about your financial future before you even step on campus.

Saving-Money-In-College

Saving Money Before College

  1. Carefully fill out the FAFSA form. Make sure you correctly fill out the FAFSA form, if you have any questions, I strongly recommend getting advice through your high school or college. Filling out this form wrong can result in you getting much less financial aid.
  2. Apply to scholarships. Apply to every scholarship you can find, and then apply to more. There is SO much unused scholarship money out there, it’s crazy! Look for local scholarships where the pool of people will be much smaller, but also apply to the larger national ones as well.
  3. Check in with the scholarship committees. This is one I never thought to do until I was in graduate school and it paid off incredibly. I went into the scholarship office every two weeks to check in until I finally got an answer. That poor woman knew me by first and last name, but it paid off because she had a face to a name and knew I really needed the scholarship.
  4. Ask for more financial aid. As soon as you get your financial aid package, call the financial aid office. Typically your financial aid package will arrive sometime in the summer before you head to school, call them immediately when it arrives. I learned this trick after my freshman year and was able to get more financial aid for my sophomore year. The schools send out financial aid packages and then a lot of students don’t come to the school. This makes more money available and they give it out on the first come basis.

Saving Money in College

  1. Price compare for textbooks. Look everywhere for your textbooks before immediately buying them at the bookstore. Yes, the bookstore is convenient and you will know that it’s the correct book, but it’s also usually a lot more money! I usually found the best deals on Amazon for buying and selling my textbooks all throughout undergrad and grad school.
  2. Sign up for student deals and discounts. There are so many deals and discounts out there only for college students, sign up for them! My all time favorite one was definitely Amazon Prime Student, which also made buying and selling my textbooks so much easier. I could easily procrastinate buying my textbooks and still get them in two days, FREE 🙂
  3. Work, Work, Work, Work, Work, Work. I just had to reference the Rhianna lyrics here, get out there and WORK! There were so many job opportunities presented to me, especially if you have work study as part of your financial aid package. Most universities will even pay you to be a note taker for the classes you are already taking notes for. You’re basically being paid to be a good student! It really is a win win for you.

These were some of the things I learned throughout my college experience and learning how to manage my money. It’s hard managing your money in college and trying to plan for your financial future with potentially so much debt. I wish I had known these things when I was a senior in high school so I could plan better for my future after college and have saved a lot more. Like I said, you live and you learn, right? What tips and tricks did you learn about saving money throughout your college journey?

How I Used My Tax Refund Check
Money Management, Student Loans

How I Used My Tax Refund Check

How I Used My Tax Refund Check

Filing your taxes can be such a pain, but hopefully a nice tax refund check is waiting for you at the end of it all. For me, it definitely was. I knew exactly how I was going to use my refund check because I know what my goals are. I want to pay my almost $200k in student loans by the time I turn 31, hopefully 30! This made it pretty easy to decide where my checks were going.

Refund Check: Savings

The first thing I did was restock my savings account. I treated myself in March to an AMAZING trip to Punta Cana with my boyfriend, it was definitely needed and totally worth it. We shopped around and spent a lot of time searching for the best trip for our budget and it really paid off. Of course it did still cost money, so I put that money back into my savings. Since I’m lucky enough to still live with my parents, I’m building my savings as much as I can while still sticking to my intense payoff plan.

Refund Check: Student Loans

Obviously, a large majority of my refund check went to my student loans. I am incredibly excited to share that I paid off my first student loan!! After lots of hard work paying my loans down during grad school, and moving back home to pay off more, I paid off $42k in about a year and a half. It definitely has been hard, but I wouldn’t trade my education for anything. It felt absolutely amazing to send in that payoff payment and say goodbye to my first student loan, you wont be missed!

Based on my goals right now, the best thing for me to do was really focus on my student loans with my refund checks. This definitely isn’t for everyone, but you need to know your financial goals in order to figure out what is best for you. How did you use your refund check this year?

Student_Loan_Binder_Download
Student Loans

Student Loan Binder Download!

Student_Loan_Binder_Download

Back in August 2015, before I even started paying off my loans, I posted about my student loan binder. This thing has turned into the best thing I ever made. It has allowed me to stay organized and motivated throughout my first 6 months of debt payoff. When you have almost $200k in student loans, you need something to motivate you. Fortunately for me, just seeing the numbers drop is motivation enough. I also use ReadyForZero, which is a huge motivator. It allows me to see my debt payoff day get closer and closer and my daily interest drop as I make each extra payment.




I use this binder to keep all my different kinds of loans organized. I have set up my binder into 4 different sections: Debt, Private Loans, Federal Loans, and TEACH Grant. In the debt section is where I keep my planning sheet and my debt payoff tracking sheet. This allows me to see the big picture of my debt payoff, like which loan I’m focusing on first and how much I payoff each month. In both my private loans and federal loans sections I keep individual debt payoff sheets for each of my loans. This allows me to see how much I have paid off for each of my loans and how much I left to pay off. Its exciting to see where I started with each of these loans and how much I have paid off.

Since this binder has helped me so much in this crazy journey, I thought all you lovely people might find these sheets for my student loan binder useful. Click the download button to get my binder cover sheet, a planning sheet, a debt payoff tracking sheet, and an individual debt payoff tracking sheet to make your very own student loan binder!

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 How do you organize your student loans?

Why_Im_Not_Hiding_From_My_Student_Loans
Student Loans

Why I’m Not Hiding From My Student Loans

Why_Im_Not_Hiding_From_My_Student_Loans

When I was in grad school and finally came to terms with the fact that I was going to be roughly $200k in debt when I graduated, I began researching. I spent hours finding tips and tricks to get out of debt and to do it fast. One of the biggest things I took from my research was that I shouldn’t be embarrassed by my debt. So many people hide from their debt, ignoring it exists. I didn’t want to do that. I began telling my friends and family about my debt, when it came up in conversation. They couldn’t believe it. They didn’t understand how I could have possibly racked up that much student loan debt. But, it’s possible. For some reason our society thinks we shouldn’t talk about debts because it’s normal to have debt. So often I hear people brush of debt like everyone has it and it’s the only way to live. Oh, but student loans are “good debt”, no debt is good debt! I don’t want that life, forever needing to give my hard earned money over to the company I borrowed it from years earlier. I want to keep my money!! Which is why I decided not to hide from my student loans.

I know many people who are simply ignoring that their student loans exist. I’m serious, they are letting their credit score absolutely tank and not worrying about it. They figure in seven years it will be wiped away and then I can start over. But, then you need to rebuild your credit and doing that after destroying your credit is incredibly difficult. It will take years and extreme diligence to bring it back up. Not to mention that having a bad credit score makes it incredibly difficult or impossible to rent an apartment, get a car, so many things that a 20 something would typically be doing. For right now, I live at home, but eventually I plan to move out. When that happens, I want to have the freedom of renting a place, if that’s what I choose to do. I don’t want my student loan debt to hold me back, even more than they already are.

I understand when you graduate from college you’re most likely in your 20s and think that it is an absurd amount of money. I get it. I was there, sitting in my college apartment staring at my computer screen in complete shock at the massive amount of debt I owed. How did I possibly rack up such a high number?! But you need to accept your debt, and make a plan to tackle it as soon as possible. Get angry, and get motivated and be sure to make a realistic plan for yourself. So, what’s your student loan plan, are you going to pay them off or ignore their existence?

Reflecting-on-2015-and-Looking-Forward-to-2016
Personal

Reflecting on 2015 and Looking Forward to 2016

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Wow, 2015 was an incredible year for me. I landed my first “big girl” job as a 5th grader teacher in May, graduated with my masters in August, and started my first year of teaching in September. Of course, I also started this blog. When I started this blog back in July I was truly planning to mostly post about my first year of teaching. I figured it would be a nice outlet for the stress I knew I would be dealing with. However, in the last year, I have found a passion for personal finance and have found myself blogging much more about that. Especially when I have this massive amount of debt weighing me down each day.

I did create a solid plan to pay down my debt this year once I started working, which has helped me almost double my monthly loan payments so far. In 2015, I was able to get my largest loan with the highest interest rate down to 78% paid off. I have been working towards paying off that loan since I was in grad school, so seeing that high paid off percentage is very motivating!

I have a lot planned for 2016, and it might be a little too much to be honest. My plan is to make 2016 a productive year for me. I want to find myself always actively doing something, whether it be school work, blog work, being with friends, whatever it is, I don’t want to be complacent. I want to push myself harder and do more than I ever have before. My goal is to make $2,700 loan payments each month, which is a bit of a stretch for me. This requires me to figure out ways to save and make more money. Which is another goal I have for this year.

I strongly believe in goal setting and I feel that it keeps you motivated knowing you are working towards something. Whatever it might be, I suggest making mini goals to reach your big goal, this makes it more likely that you will succeed and make the task less daunting. For example, I picked $2,700 a month for my loan payments because I want to have my loans completely paid off by the time I turn 31. This might sound crazy since I still have about $185k in student loans, but it’s possible if I work hard and keep my goal in mind. So, what are your goals for 2016 and how do you plan on accomplishing them?

3-Things-I-Spend-Money-On-Each-Month-Blog
Money Management

3 Things I Spend my Money On Each Month

3-Things-I-Spend-Money-On-Each-Month-BlogI 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?

My Techniques to Increase my Monthly Student Loan Payment
Student Loans

My Techniques to Increase my Monthly Student Loan Payment

My Techniques to Increase my Monthly Student Loan Payment

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.

Monthly Breakdown

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?