‘I have prioritized heavily paying off my student loans’: I'm torn between aggressively paying off debt and enjoying life; how can I find the balance?

Hi Money Minder,

I need some help with understanding my money situation. Here’s what’s going on:

I work for the government and my income is increasing from a GS9 to GS11 by the end of the year. My partner and I live an hour away from work, and my partner doesn’t make much money.

After graduating in 2022, I’ve been focused on paying off my student loans like crazy. But now I’m starting to wonder if I’m going too hard on it, especially when I have other goals like traveling, enjoying expensive hobbies like kayaking and biking, and getting my Master’s degree.

Here’s the breakdown of my income and expenses:

Some things not shown in the graphic I made: I pay for medical insurance, put 10% of my income into my TSP, and my partner covers the groceries.

And here’s where I stand with my assets and debts:

Thanks for your help,

Response from THE MONEY MINDER:

Hello There,

Congratulations on your dedication to paying off your student loans since graduating in 2022. It’s commendable that you are prioritizing your financial goals. However, it’s essential to find a balance between aggressively paying off debt and enjoying life experiences such as traveling, recreational activities, and furthering your education with a Master’s degree.

Given your current income as a government employee and the expected promotion to GS11 by the end of the year, it seems like you have a solid financial foundation. To achieve a balance between debt repayment and other goals, consider reassessing your budget and adjusting your repayment strategy. It may be helpful to allocate a portion of your income towards a sinking fund for recreational activities, travel, and future educational pursuits.

Since your partner covers groceries and you contribute 10% to TSP, you have a good start in managing your expenses. Ensure that your sinking fund includes provisions for medical insurance and other essential expenses not captured in your current budget. It’s also crucial to revisit your budget periodically to make any necessary adjustments as your financial situation evolves.

In conclusion, it’s vital to maintain a realistic and practical approach to managing your income versus expenses. By finding a balance between debt repayment and other goals, you can work towards a healthy financial future while enjoying life experiences. Remember to prioritize self-care and personal growth along with your financial responsibilities.

Farewell from THE MONEY MINDER.