How I Saved Over $11,000 in 4.5 Months + Paying Back Student Loans
Saving money is important. As if you needed this blog post to tell you that. But how do you save money? And while not all of the tips I'm going to share with you are feasible for everyone, hopefully, you'll read at least one thing that applies to you.
Start looking for jobs before you graduate
Yes, you do have a grace period after college before loan payments start. But trust me, those six months will fly by. Between the application process, interviews, and finding time between classes to travel for interviews, the earlier you start this process the better. I was lucky enough to find a nursing job before I graduated from college. It is in Milwaukee which is close to my hometown. Which leads me to my next tip...
Consider moving back home after college
I know, I know. Moving back home sounds like the worst thing ever. You've already been out of the house for a couple years and moving back home means sacrificing your independence. But if your home life isn't terrible and you're able to do so, definitely consider it. Remember, moving back home isn't a permanent thing. Eventually, you'll refind your independence. For me, moving back home meant saving anywhere between $500-$900 a month in rent and not spending money on groceries. And when you're saving to repay your student loans, that money builds up fast.
Budget
Pretty much any financial blog will tell you this. But how do you create a budget? And better yet, how do you stick to it? Some suggest the 50-30-20 guideline. Where 50% of your income (specifically the money in your pocket after taxes) is spent on fixed expenses. The necessities: rent, groceries, gas, student loan payments, health insurance (if it's not covered by your job), car insurance, heating, cooling, electricity, internet, cell phone bills, etc... Yeah, the list is longer than you once thought. Then 30% is spent on wants: going out, going to the movies, holiday gifts, gym memberships, magazine subscriptions, Netflix, Audible, etc... And 20% is saved.
Good thing we live in the digital age because there's an app for everything. I've mentioned it before, but the iSaveMoney app is a lifesaver. For me, I have a budget of $500 for my car payment, gas, and insurance. And another $500 is set aside for "other" expenses. That gives me a total budget of $1000 and anything I don't spend I save.
Delete subscription services
Do you really need YouTube Red and Netflix and HBO Go and Audible and Sephora Play and Ipsy and that gym membership... I think you see where I'm going. Go through those monthly services and see what you really use or don't use. You can always re-subscribe.
Check your bank account daily or weekly
As a student, I don't know what was more stressful - checking my grades or checking my bank account. But that "out of sight, out of mind" mentality will only hurt you in the end. If you don't spend anything that day, then don't check. But if you're using your credit or debit card at all during the week, it can be helpful to actually see what you're left with at the end of the week. Plus it's another safeguard to quickly see if there's an expense on your card that you don't remember using it for.
Overhaul your closet
You're done with college so hopefully, you've found your style. Mine happens to be minimalistic chic. Overhauling your closet gives you an opportunity to re-sell your clothes and make a little extra cash. Not to mention, once you find your closet essentials, you'll be able to identify what you really need for your closet vs what you want.
Find Your Side Hustle
I'm still trying to find my side hustle. Something other than your main 9-5 job to help bring in a little extra cash.
Paying Back Student Loans
Payback early and payback often. I just made my first student loan repayment 💀. Honestly, I should have done so sooner considering I was employed. If anything, make sure you're at least paying your minimum payment on time! But if you have the extra money to spend, spend it repaying student loans. Try paying off the principal amount (the original loan amount, before taxes) if you can. This will make your overall payment lower. Or, put the other money towards the loans with the highest interest rate. Some loan servicers will automatically do this if you pay more than the minimum. Or, if you can pay one loan payment in full, do that as well. Some loans will lower your interest rate if you sign up for monthly payments. All of the above will help you pay off your loans faster and with less interest - saving you money.
I'm not a professional at paying back student loans, not even close. So always check your student loan servicers website for more professional advice.
Good Luck!
Start looking for jobs before you graduate
Yes, you do have a grace period after college before loan payments start. But trust me, those six months will fly by. Between the application process, interviews, and finding time between classes to travel for interviews, the earlier you start this process the better. I was lucky enough to find a nursing job before I graduated from college. It is in Milwaukee which is close to my hometown. Which leads me to my next tip...
Consider moving back home after college
I know, I know. Moving back home sounds like the worst thing ever. You've already been out of the house for a couple years and moving back home means sacrificing your independence. But if your home life isn't terrible and you're able to do so, definitely consider it. Remember, moving back home isn't a permanent thing. Eventually, you'll refind your independence. For me, moving back home meant saving anywhere between $500-$900 a month in rent and not spending money on groceries. And when you're saving to repay your student loans, that money builds up fast.
Budget
Pretty much any financial blog will tell you this. But how do you create a budget? And better yet, how do you stick to it? Some suggest the 50-30-20 guideline. Where 50% of your income (specifically the money in your pocket after taxes) is spent on fixed expenses. The necessities: rent, groceries, gas, student loan payments, health insurance (if it's not covered by your job), car insurance, heating, cooling, electricity, internet, cell phone bills, etc... Yeah, the list is longer than you once thought. Then 30% is spent on wants: going out, going to the movies, holiday gifts, gym memberships, magazine subscriptions, Netflix, Audible, etc... And 20% is saved.
Good thing we live in the digital age because there's an app for everything. I've mentioned it before, but the iSaveMoney app is a lifesaver. For me, I have a budget of $500 for my car payment, gas, and insurance. And another $500 is set aside for "other" expenses. That gives me a total budget of $1000 and anything I don't spend I save.
Delete subscription services
Do you really need YouTube Red and Netflix and HBO Go and Audible and Sephora Play and Ipsy and that gym membership... I think you see where I'm going. Go through those monthly services and see what you really use or don't use. You can always re-subscribe.
Check your bank account daily or weekly
As a student, I don't know what was more stressful - checking my grades or checking my bank account. But that "out of sight, out of mind" mentality will only hurt you in the end. If you don't spend anything that day, then don't check. But if you're using your credit or debit card at all during the week, it can be helpful to actually see what you're left with at the end of the week. Plus it's another safeguard to quickly see if there's an expense on your card that you don't remember using it for.
Overhaul your closet
You're done with college so hopefully, you've found your style. Mine happens to be minimalistic chic. Overhauling your closet gives you an opportunity to re-sell your clothes and make a little extra cash. Not to mention, once you find your closet essentials, you'll be able to identify what you really need for your closet vs what you want.
Find Your Side Hustle
I'm still trying to find my side hustle. Something other than your main 9-5 job to help bring in a little extra cash.
Paying Back Student Loans
Payback early and payback often. I just made my first student loan repayment 💀. Honestly, I should have done so sooner considering I was employed. If anything, make sure you're at least paying your minimum payment on time! But if you have the extra money to spend, spend it repaying student loans. Try paying off the principal amount (the original loan amount, before taxes) if you can. This will make your overall payment lower. Or, put the other money towards the loans with the highest interest rate. Some loan servicers will automatically do this if you pay more than the minimum. Or, if you can pay one loan payment in full, do that as well. Some loans will lower your interest rate if you sign up for monthly payments. All of the above will help you pay off your loans faster and with less interest - saving you money.
I'm not a professional at paying back student loans, not even close. So always check your student loan servicers website for more professional advice.
Good Luck!
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