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
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