Best Budgeting Tips

By Lisa Xing
[Personal Finances]
A Little is a Lot
Never forget the golden concept that a little is a lot. Every bit you put toward your loans will help decrease the interest. If you need motivation, think about that. Look at interest as “free” money you could be using for something more productive. Because your interest rate changes a lot, it doesn’t hurt to keep up with what the prime rate is over time. The most important thing to remember is that interest will go down with every bit you put toward your loans. The less you owe, the less interest or “free” money you pay. Incentive enough, I’d say!

Stay Positive
Another thing to remember is that having a substantial debt should not interfere with your life. That is, try your best to not let it affect the way you live. If you want to travel, don’t let debt get you down. There are certain things that are best done at a certain time in your life. Don’t let debt be your only deciding factor.

This past December, I decided to put the rest of my money toward a trip to California. It was horribly pricey, but well worth it—even though I owe about $35,000 in student loans from my Masters degree. It’s all a matter of putting things in perspective—is the experience worth it? For me, it was, and it’s up to you to evaluate your own situation. 

Keep Organized
One of the most important things you can do is keep organized about the amount of money you’re spending and the amount of money you’re making. Once you have that figured out, it’s much easier to look at your plan to pay back your loans. You’ll know exactly how much you can put toward it each month, and hopefully have also have a little more to be flexible. After all, a loan shouldn’t be a hindrance.

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