Yup, you just read that correctly. My student loans are gone. Donezo. Eliminated. Demolished. Any other word that you can think of. It seems like just a couple of months ago I published my post about my $38,000 in student loans and how badly I want them gone.
I have made a decent amount of recent payments and have watched our savings account dwindle down to a very low and uncomfortable number (still livable though). Our monthly income keeps increasing and without it, none of this would have been possible. I am very grateful for everything in life.
Also, a lot of people have asked about why I made some small payments of less than $1. It is because whenever I would pay the full amount of the loan off, they would still charge interest on the loan for the day until the actual payment was received. So I had some small payments of less than $1.
My Student Loans
I worked full-time all throughout my undergrad and grad, and still managed to have student loans. I’m going to blame it on the fact that I had to move out when I was 18 and pay for myself to live, but honestly, I wasted a lot of the money that I made as well. I spent tons of money on clothes and food. W and I were not the smartest with money when we were younger and first moved in together.
The total amount of student loans that I accumulated was around $40,000 after I received both my undergraduate and graduate degrees.
We have had some of the money saved in our emergency fund for quite some time, but I had a hard time parting with it. That is the main reason for why I was able to throw such large payments at my loans every week, and especially the last couple of weeks.
Some people ask me if I regret my degrees now that I will be switching to 100% side hustles. No, I still don’t regret going to school even now that I plan on switching to 100% freelancing. I don’t think I would be where I am today without my degrees, and I do think that they will continue to help me into the future.
My original goal was to finish paying off my student loans in March of April of this year, but I fell a few months behind.
We definitely did some unnecessary (but fun spending), which caused us to be a little behind schedule. However, I’m not going to complain, I’m super proud of myself! I thought that my goal seemed a little hard, and it was, but I only fell a couple of months behind, so it definitely wasn’t impossible.
My Financial Future
What will we do with the additional income that we make every month now that $5,000 to $10,000 isn’t going towards student loans? We’re still not sure! Having this kind of cash flow will be very different from what we are used to, because for such a long time everything has been going to my student loan debt.
We definitely want to save as much as we can in order to build a large enough emergency fund to prepare us for the freelancing life that I will be entering.
We also want to start investing more aggressively starting this month. We’ve always invested a little, but not enough as to where it’s a meaningful accomplishment relative to me paying off my students loans.
We still don’t know when we will be buying our next house, and lately we have been talking about putting it off for a couple more years. We haven’t lived in our current home for very long (4 years), and it still fits us for now. So we will be saving for our next house down payment fund, but at the moment it’s not at the very top of our list.
Now, I do realize that in a couple of months that we won’t still have this huge savings amount every month, since I will be eliminating an income source. Our income and therefore our amount of savings per month will decrease significantly, and that is something that will take getting used to. It’s all relative though. Just one year ago, I could have never dreamed of being anywhere near half of what we make today. It’s only normal that I can’t work 2 full-time jobs forever.
Anyway, I am so excited that my student loans are gone! And yes, this is a bragging post
What’s your current financial goal that you are working towards?