Tips for Setting Aside Enough Money for Student Loans


Ah, the burden of repaying student loans. Each month the payments come due, and each month you groan, wondering how you’ll be able to pay it back. Maybe the reason student loans feel like such weight on your shoulders is because you have to pay back for years to come and it doesn’t look like there’s an end in sight.

Setting aside enough money for student loans may not be fun, but it can be fairly easy to do — all it takes is a few minor tweaks and you’ll be able to pay back your loans without fretting every month.No matter the reason, it’s still important to pay them back in a timely manner to avoid accruing fees or large amounts of interest. Setting aside enough money for student loans may not be fun, but it can be fairly easy to do — all it takes is a few minor tweaks and you’ll be able to pay back your loans without fretting every month. Follow these steps to ensure that you’ll have enough money each month to pay back your student debt:

Stash Away Money in a Jar

You’ve heard of the concept of a swear jar? If so, use the same principle and call it a college jar. Any time you receive a small amount of money, whether it’s loose change or birthday money, throw it in the college jar. If you really want to ensure that you’re saving enough, try matching the amount of money you put in with money out of your own account. Once you’ve accumulated a set amount, you can deposit that into a savings account.

Get Rid of Cable

Cable bills have gotten out of hand, reaching up to around $1,500 annually. But there are better options, especially if you don’t mind streaming different media.

“Increasingly, there are niche streaming options to scratch any itch,” said Andrew Tarantola of Gizmodo. “While eventually they add up, at least you’re paying for something you actually want to watch, not dozens of channels of dreck.” By cutting out cable and switching to a more inexpensive service, you can use that money toward your student loans, without even losing anything.

Put Aside your Raise

If you’re lucky enough to get a pay raise at work, it’s a good idea to set aside that extra money to put toward your loans. Think of it this way: You handled your bills without the additional funds before, so you probably won’t even notice it missing; plus, you’ll feel extra good when you’re more easily able to pay the loans each month. Talk to your payroll department about setting up an automated transaction for the extra money, if possible.

Cook Your Own Meals

A recent “Real Money” poll in the new World News showed two out of three people believe they are spending too much money on food. If you find yourself going out to eat a lot, it might be a good time to evaluate your cooking skills in order to sock away extra money for your loans.

Associate Food Editor of Refinery29 Zoe Bain decided to only cook her own meals for two weeks without going out to eat once and socked away $200, “which is no small feat if you do the math on how much that saves per year,” she said.

Find a Creative Way to Reduce Energy Expenses

According to the U.S Department of Energy, the average American household spends up to $2,500 a year on energy bills. One simple way to lessen your bill is to use CFL or LED light bulbs.

“These bulbs are about four times more energy efficient than incandescent bulbs and last for many years,” says Trent Hamm, author at The Simple Dollar. “Even switching just the five most-used bulbs in your home could save you upwards of $40 a year on your electric bill.”

Looking for more ways to save money each month for your student loans? Call us or stop by today to see how we can help you cut back on your daily costs or set up a savings account.

 

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