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How to get on top of your student debt this year

How to get on top of your student debt this year

It’s a new year, which means a new you. If one of your goals this year is to stay on top of your student debt, then this is the article for you.

Here, we’ll look at ways to help you save and stay on top of your debt as a student to help you out both now and in the long run.

80/20 Savings Rule for Part Time Income

While budgeting and tracking every single penny works for some, for others it’s not the best approach.

For those looking for a different approach, you might try out the 80/20 savings rule for part-time income.

With the 80/20 savings rule, you “pay yourself first” by saving 20% of your take-home income. Once you do that, you’re free to spend the rest as you see fit.

The 80/20 savings rule isn’t set in stone – you can save 10%, 20%, 30%, or even 50% or more.

The main benefit of it is that it gets you in the habit of regularly saving money early on. It also helps ensure you have enough savings to use in a financial emergency, so you don’t have to go into debt and can afford to make your student loan payments as they come.

Save Money on Beverages

When I was going to school, beverages were a major expense for students. It seemed like almost every student had a coffee or drink in their hand.

While $2 or $3 here and there may not seem like a lot, if you’re spending that much two or three times a day, seven days a week, it can really add up. Add bottled water to the equation and you could find out that you’re spending over $200 a month on drinks alone.

To help save money, try to avoid discretionary purchases that can easily be avoided. Make your own coffee when possible or get into the habit of brining your own water bottle. It’ll be easier on your wallet and easier on the environment as well in the long run.

When you do want to indulge, aim to buy drinks in bulk. The savings will really add up.

Tutor in Your Spare Time

If you’re someone with straight A’s, why not help out others and earn a buck while you’re at it, as well?

If you’re good at courses that students normally struggle in, like economics, statistics, or geography, there could be a high demand for your services.

If you’re interested in tutoring, reach out to your college or university. Colleges and universities usually have programs that let you advertise your services without incurring any out-of-pocket expenses, helping you earn money sooner.

Start Looking for Summer Work Early On

Perhaps the best way to avoid student debt is by working during the summer.

Not only will you get practical experience that can help you land your first full-time job outside of college or university, but you may also be able to earn enough money to pay for next year’s tuition, helping you avoid taking on any student debt to begin with.

Don’t wait too long to start looking though – as the saying goes, the early bird gets the worm.

Often the best jobs are highly sought after and can be filled rather quickly.