Let’s talk about how to get out of student loans. I graduated college with $97,000 in student loan debt and did the smartest thing I could think of at the time, I bought a brand new car. I was living with my parents literally in their basement, struggling to make it as a filmmaker. I was young but I had reached my breaking point. I thought about how my life would play out if I continue to pay the minimum on my student loans. If I continue to just ignore my finances completely. I probably be approaching 50 years old, looking back on a lifetime of being crippled by this debt.
So I began by organizing all my finances and for the first time taking a deep look at what I’d gotten myself into, I plug my banking information into a wealth calculator online and was a little bit surprised. I didn’t just have no money. I was in debt now.
I was in the hole that mindset carried me through the next few years as I started to earn more money and pay down my student loans. I didn’t realize it at the time, but there were a few steps that I followed early on and still to this day that helped me get out.
- 1. I organized all of my finances.You can do it either on a spreadsheet or you can use an online service,but really that the idea is to get a bird’s-eye view of your earnings, your savings and your debt and it’s a complete game change and it woke me up to the problem that I had.
- I picked up a book on personal finance. Now, this is incredibly important I started with this book called The Total Money Makeover. It’s super straightforward,oftentimes incredibly corny, but it’s that simple approach that’s helped millions of people, because before you take that first step, you really need to understand the strategy and the direction that you need to be heading.
- Very obvious but spend less money. I spent less money and it’s a no-brainer. It’s so straightforward.It was minimalism and simple living, it was prioritizing my life figuring out what was important. And stop spending money on useless shit that didn’t add value to my life.