Saturday,
October 7, 2023
Top Story
The week in review
• The 30-year fixed-rate mortgage saw its largest weekly increase since mid-August, rising to 7.53%. This was the fourth consecutive increase and the highest level since November 2000. In other economic data, the ISM Services PMI fell slightly in September but still showed that the services sector was expanding.
• First-time unemployment claims inched up to 207,000 in the week ended September 30, falling below expectations and remaining near the seven-month low. The data suggested the labor market remains tight.
• President Joe Biden canceled $9 billion of student debt for 125,000 people. The relief was primarily targeted at borrowers with disabilities, working in public service, or enrolled in income-driven repayment plans.
For more economic news, visit On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Update your budget to make room for loan repayments
Imagine your budget allows you to seamlessly fit your student loan repayments into your day-to-day life. Here are a few tips to redo your budget.
Determine your financial goals
How can you budget if you don't know where you're going? Setting financial goals can help give your money a purpose. Consider short- and long-term goals, such as paying off loans in a specific period of time, or saving up for a specific purchase or life event.
Calculate your income
How much do you make after taxes? All you have to do is look at a paystub and any other income, such as from a side hustle. You might have investments that pay you dividends or other forms of income. Whatever you have, add it all up!
Review your expenses
How much money flows out of your checking account every month? Look at loan payments, insurance costs, mortgage payments or rent, utilities, food, childcare, healthcare, IRA deductions, and everything else that belongs in the category of expenses. Make adjustments.
Consider where you can make adjustments based on your income and expenses so your student loans nestle right into your budget.
What percent should go toward student loans? Keep the 50/30/20 budgeting rule in mind:
• 50% toward needs
• 30% toward wants and discretionary expenses
• 20% toward savings and paying off debt
