The Student Loan Mistake to Avoid

With many fall graduates moving forward with their future lives after college it is now time to get your financial future off to the right start.

If you have a job already then great, step 1 is learning how to budget your salary.  Find an example budget on the “Your Monthly Budget” page on the blog.

If you have debt, then tackle it and don’t get into further debt.  This means don’t go out and purchase a new car or max out credit cards.  Your first paycheck is often times the biggest one you have seen to date, so that is why it is vital to create a budget.

Student loans often come with a deferment period of 6 months after you graduate.  This is basically a way for the loan company to say: “Enjoy getting your finances in order while we charge you interest that accrues on a daily basis”.  I made the mistake of not making a loan payment during my 6 month deferment period, and it ended up costing me hundreds if not thousands of extra dollars.  Paying off student loans and debt in general is essential in beginning one’s finances.  Don’t wait for the deferment period to pass.

The benefits of beginning to make student loan payments during the deferment period are enormous… Save money on interest, and paying off student loans faster!  Learn from my mistake and save yourself time and money.

Remember…

Budget Smart, Invest Wise

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