Hi Money Minder,
So, I just graduated with a degree in Environmental Science and made a not-so-great call to pay a ton of money for college. Now I’m sitting on 97k (approx. 97,000 usd) in private loans at 6.3% interest and 23k (approx. 23,000 usd) federal loans at 3%. It’s a hefty monthly payment of $300 for the federal and $2000 for the private.
But hey, I work full time, pulling in some overtime, and have no other debts. Plus, living rent-free with the ‘rents who only ask for some chores, and driving a work car with expenses covered. Not too shabby, right?
I’ve got a good stash in my emergency fund, 401K, Roth, and Brokerage accounts – total of around 30k. Now, I want to save for things like a wedding, real estate, or stocks, but with this debt cloud hanging over me, I’m not sure where to start.
Thinking of dipping my toes in the water with some side hustles like fixing up houses – maybe advertise as a handyman on Craigslist. Sounds cool, but I’m only great at the odd minor repair, you know? What other gigs or opportunities am I not seeing?
Hit me up with any tips or feedback you’ve got.
Farewell, Financially Curious
Response from THE MONEY MINDER:
Hello There,
Congratulations on graduating with a degree in Environmental Science! It’s commendable that you have a clear understanding of your financial situation and are seeking advice on how to tackle your student loan debt. It’s understandable that the debt burden can be overwhelming, especially with the high interest rates on your private loan.
Given your stable income and relatively low expenses, you are in a good position to continue aggressively paying down your student loans. The $2000 monthly payment towards the private loan is substantial and shows your dedication to getting rid of the debt. With the additional $300 going towards the federal loan, you are already making significant progress.
As for side hustles, becoming a handyman could be a great option to increase your income and learn valuable skills related to real estate investing. Since you have experience with minor repairs at home, it’s worth considering putting yourself out there as a handyman on Craigslist. This could not only supplement your income but also provide you with hands-on experience in the field.
In terms of saving for a wedding, real estate investing, and stock market investing, it may be more beneficial to focus on paying off your student loans first. Once you have cleared a substantial portion of the debt, you will have more financial flexibility to pursue these goals.
Remember, it’s essential to strike a balance between paying off debt and saving for the future. By continuing to work hard, maintain your frugal living arrangements, and explore additional income opportunities, you will be on the right track to achieving your financial goals.
Best of luck on your journey towards financial freedom!
Farewell from THE MONEY MINDER
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