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| Summer 2017, Paris, France |
Hello lovelies!
Can you believe we only have 4 months left this year?
If there's one thing I've accomplished this year, it's been tackling my student loans.
How?
If you didn't read my previous post on how I will be paying off my student loans by the time I'm 24, check it out here!
Student Loan Progress:
1. I'm still on Dave Ramsey's Baby Step #2 - pay of all debt in my debt snowball
2. Paid off all my personal credit card debt and closed my accounts - about $300+
3. Paid off $11,800+ in student loans
January 2017
~ $39,900
August 2017
~ $28,695
Above is an exact screenshot from my account that shows me when and how much I've paid from the beginning of January, when I started working full-time post-college.
As you see, I've minimally contributed $1,000 a month towards paying off my debt and as time went on I've increased my increments. I even paid $2,000 the month before I went on vacation in July!
It may seem like I don't have any other bills to pay or expenses to think of because it either seems like a lot or that I can do much more BUT I do have to consider a multitude of things each month. Since I like to be as transparent as possible - here's my rundown of other expenses I need to consider while still paying off my loans at minimum at $1,000 a month. Let me also mention that I do get paid ONCE a month. So making sure I allot money to my expenses each month is extremely important.
Static Monthly Expenses
- gas (I travel to CT almost every weekend, to work everyday, to NYC for work)
- car maintenance, as needed (my car has +230K miles...she's still alive!)
- tolls traveling to and from CT (#longdistancerelationship)
- ~$575+ alloted to my parents for living at home + car insurance
- $100+ monthly phone bill
- medical expenses or co-pays, as needed
Non-Static Expenses
- manicure + pedicure (#priorities)
- seasonal clothing spree
- food, food, and more food.....(am I the only one who eats out too much?)
- gifts/presents for loved ones
- emergencies
- travel (I went to Paris and Brussels this past July!)
- beauty/makeup products (I do get a bi-monthly stipend at my job that helps!)
I managed to cash flow a trip to Paris this summer although I probably could have used that money towards debt BUT I ensure to pay off my monthly allotment towards debt without going stir crazy.
Although I have a long way to go, I'm semi-proud that I've stayed dedicated to paying off this debt until I don't have it anymore. I still pretend I'm a #brokecollegestudent although I do have a lot more money to play with since I work full-time. Some months it feels like I'm getting nowhere and still have so long to go. Some months I envy my friends who are doing a whole lot more with their new found salaries by moving out or going on trips because they either a) don't have loans to pay or b) don't care about it just yet. Overall, I have to remind myself of my long-term goals not only related to this one, but all of them.
I'm not the perfect budget-er (yes, I made that a word) but I wanted to show you I'm a real life example that it is possible to pay off debt no matter how big or small. If you feel like you have a lot of student loan debt to pay off, you can do it!
Just start somewhere! It's better to start now then to just wait and pay more in the long term in interest. You shouldn't claim that you'll have this until your 50 or that you're never going to pay it off or it's not possible to do this in your 20's.
Five Tips For Getting Started
- Get a realistic view of your monthly income. How much do you have every month to work with? If you have an irregular income, what's the minimum you make a month?
- Get a realistic view of your debt. Write down all of it. Some people believe that having debt is okay...if you believe that, cool -- do you. If you don't, prioritize cleaning out the debt in your closet.
- Set a goal and a timeline. Do you want to be debt free? Based on your budget, when realistically is that able to happen? 2 years? 4 years? Don't let the length scare you, it will get done!
- Prioritize paying your debt at a set amount at a minimum and maximum each month. For me, I have to contribute minimally $1K a month. At most, $2K, depending on what that month looks like.
- Set up automatic payments and/or set a specific timeline each month to pay your debt. I get paid at the end of every month and as soon as my check hits my bank account, I take out my monthly debt payment before anything else. All my other expenses either come out automatically or I set time aside to pay it.
Did you like this post? What else do you want to see related to finances?
If you have any questions or need someone to chat with about your goal, comment below :)
xoxo,
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