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How to Pay off Student Loans Within 6 Months of Graduating

How to Pay off Student Loans Within 6 Months of Graduating

69% of seniors who graduated from public and nonprofit colleges in 2013 had student loan debt, averaging $28,400 per borrower. College was an unforgettable experience that we’d do over again if possible. It was a safe place to explore new opportunities and build relationships that could last a lifetime.

Fast-forward to today and graduates are forced to make decisions within financial constraints. For example, someone graduating with 40k in debt might move in with their parents to save money on rent. While this decision is fiscally responsible, it can impact one’s career trajectory. A lot of smart people credit their career success to having optimized learning early on in their careers.

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There are two ways to pay back loans. The first is to make the minimum payment each month for 120 months and put payback on auto-pilot. The second is to pay them off as quickly as possible to avoid interest. With most lenders offering a six-month grace period for interest, I’d like to explore a few ways to eliminate them.

Craigslist

People are usually more than willing to part with old stuff. I’d never recommend soliciting to sell people’s junk. Start with your old stuff, friends that could be moving, or family member’s stuff that might be ready for a spring cleaning. You’d be surprised at how well things retain their value. Offer to split the sale 50/50. To make this worth your time look for things that are in excellent condition, vintage, or retain value well. I’ve written an extensive guide with examples that helps with the listing process.

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eBay

If it can fit in a box, sell it on eBay. I’d start with electronics or brand name clothing. Remember all those things you “had to have” before being a poor college student? Give your listings a title that would appear if they were sold new on a retail site, take great pictures, and start them as an auction at $0.99 with no reserve. This will help your listings get seen by the most amount of people.

Pro tip: Anything Oakley brand or related to sunglasses will sell for way more than you’d expect.

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Trove

If you’re moving away from campus after graduating, you can use Trove to sell furniture before you go. There’s always a large amount of furniture in perfect condition sitting on the curb during move-out week. People will pay good money for well-kept, used furniture. If posted on the right website, you should have no problem getting back some of what you paid for yours. Trove is also a great option for buying brand name used furniture at a fraction of the cost.

Airbnb

Being an Airbnb host is a legitimate alternative to living at home after graduating. The supplemental income earned from one room can cover a month’s worth of total expenses. This can free up regular income and allow you to throw entire paychecks at those annoying loans, bringing them down quickly. Even further, hosting after completing loan payback, can eliminate living paycheck to paycheck.

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Of the four options mentioned, Airbnb has the highest return on effort. Home sharing is relatively new, and a lot of people are still on the fence about it. I’ve hosted over 100 guests and have never had a terrible experience. LearnAirbnb is a great resource for getting started.

The freedom of being debt free significantly outweighs the sacrifice it takes to get there. Implementing the tactics above increases your ability to chase opportunities and take calculated risks. It will also give you a real world crash course in personal finance. Be entrepreneurial, work on projects that you find interesting, or your passion. This is much easier to do without having the burden of student loans.

Featured photo credit: Evonne via flickr.com

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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