Paying Off Debt With My New Job
Paying Off Debt the easy way
Paying off Debt can be hard as a millennial. Hell, It’s hard for anyone, but we face a new future past generations haven’t had to deal with. Record high student loans, switching jobs at an exponential rate (which by the way, could be a good thing.) To make sure that we get to experience the places we want to before “it’s too late”. You can do it the easy way or the hard way. Lets not beat around the bush, the hard way sucks and we all know how to do it because we’ve all been there before. The easy way on the other hand….
It starts off hard
How hard? Take a look at what student loans have cost us. We start with making the decision to go to college, get a degree, come out swinging for the fences. Then quickly realize that the the U.S. may have struggled out of the recession but golden goose jobs aren’t exactly laying around in piles.
The average millennial currently lives at home or with a roommate, yes even into their 30’s. They also make on average $26,000. Coming out of college with $40,000 in debt puts the icing on the cake.
How To Make It Easier
Saving as much as you can early on in life adds up. Compounding interest for retirement, paying off your student loans, it takes sacrifice. It’s definitely not easy, but you can turn it to your advantage while still having fun in your 20’s.
As in my previous post I am a huge proponent of of the 50%/30%/205 when it comes to spending your hard earned money.
50% goes to your monthly bills- your rent, grocery bill, electricity, phone bill etc.
30% goes to having fun! This is what you use for going out to eat with friends, trips, drinks, tickets to the show, you name it.
20% goes to saving. 3 months of bills in savings (6 if you can afford it) then it goes directly into your retirement.
The Path To Financial Freedom
Hate your job? If you’ve saved up you can quit and move on to your next one without very little stress. Trust me, you don’t want to quit until you have a new one, and that reserve will help keep you from going gray sooner rather than later.
Want to buy that new car to impress your friends? First, DON’T, but if you save you can pay for it in cash with your trade in value.
Want to go on that sweet trip to Cali or Coachella with that VIP pass? By saving up your fun money you can go and not have to worry about putting it all on your credit card.
What This All Means
Saving money and paying down your debt is hard. It’s not fun and it takes grit, but if you stick to it you can live a stress free life knowing your covering all your bases.