Financial Advice: 23 Year-Old who Paid off $30K of Student Loans in 18 Months (Part 1)

Financial Advice from a 23 year old who paid off $30K in student loan in 18 months - Part 1

Peter Schmitz

1.     Have a budget

This is first and for a good reason. Tell your money where to go versus your money telling you. As the saying goes, ‘Even the smallest of leaks can sink a big ship.’  In my case, my mentor was instrumental in sitting down with me and shaping a budget to allow me to pay off $30K in student loan debt in 18 months, while continuing to save and put money away. 

Recommendations:

• Figure out how to keep more of the money you make
• Review your budget on a weekly basis
• Put your tax return toward savings and debt (not a trip)
• Track all of your expenses for 2-3 months – we have a tendency to underestimate how much we are ACTUALLY spending
• We remember the regular things: gas, food, entertainment..BUT..how much are you paying for computer ink and your music subscription. It all adds up!
• LIVE BELOW YOUR MEANS
• Spend only cash for one week – it’s very different when you have to hand over money

2.     Figure out a second way to create income for yourself

It can be as easy as selling something on EBay, driving Uber, starting a company, coaching someone in an area you excel at. In your 20s, having another way to make income outside of your full-time job will help you feel more productive and allow you to give yourself some extra breathing room with your finances. Think about it, an extra $300 per month can significantly help on a student loan or rent payment (maybe need that to be $600 in San Fran and NYC..) 

Recommendations:

• Start that side hustle
• Get creative
• Keep an open mind to new ideas
• Reach out to someone you know who runs a successful business
• DO NOT be afraid of failure

Feel free to reach out and network, leave comments and suggestions!