I finished my undergraduate degree debt-free. Now, I owe $35,000 for a one-year Masters degree I did abroad. Hefty, to say the least. It is frustrating to have what seems like a huge burden on your shoulders, especially for people who are settling down and want to make bigger purchases, like cars and houses. The total sum of your loans may be menacing, but it’s important to look at the breakdown. When it comes down to it, it’s all about being smart and figuring out where your priorities lie. At the end of the day, that big number won’t seem so bad if you have a plan.

Prioritize
Before you do anything, set aside an afternoon to figure out what your priorities are in life. This may sound too general, but it will help you decide what your money should go towards, or at least give you a better idea of where your loans fit into this equation. How quickly do you want to pay them back? Or would you prefer to take your time with them? Is your goal to travel? Or is settling down and buying a house your priority?

Asking yourself these questions will give you a better sense on how to save. If your priority is travel, then you will know to spend less on other aspects of your life, like shopping, or expensive meals out. If it’s paying off the loans as quickly as possible, you’ll be able to assess how much you can spend in other aspects of your life. If you make a list in order or top priority to lowest priority you will get a visual sense of what you should be doing with your money.

Make a Reasonable Plan
Although your plan doesn’t have to be something you follow stringently, it is always helpful to make one to give you a rough guideline on how to manage your money. Write down how much you make each month. Then, add together all your expenses per month—bills, food, miscellaneous, going out, etc. After that, look at what you owe the bank. Figure out how quickly you want to pay back the loans, and how much you should be paying back to make that happen. Don’t forget that the more you owe the more interest you’re paying as well. If your loans are your top priority, keep your other life expenditures flexible enough so that you are able to cut down if you need to.