Whether I agree or not with the way you budget and spend your money, I always hit 'like' on your budget videos because I really respect you for being so open vulnerable and honest with us. Thank-you. #Love&Respect x
Come on Aja, you’re doing great girl. You are the owner of your life and you’ve taken responsibility for it. I’m following you since a couple of years now and I’m enjoying especially these kind of videos since I’m not only learning from you, but also feeling inspired. Cheer up!! Big hug from Spain
" most americans are in debt but dont talk about it" yaass gurl. I Stumbled upon your 200k student debt video and kept seeing Dave Ramsey in the comment. Now Im hooked on budgeting. Girlllll you changed my finances 😂😂😂
Hello, I love that you are so opened about budget. I am 35 and I started doing my budget when I was 22. My mom taught me but also at 22 I was $12k in debt already buying stupil things. I thankfully paid that off. I have been trying to teach my friends how to budget but they don't want to listen. There is nothing to be embarrassed about doing a budget. Most people need to know where their money goes. Continue doing a great job!
You're amazing. I discovered you because of your budget videos. So I've watched each moth now. You're food budget is great now I can't remember a 100% but I wanna say you're January budget you were eating like $1200 now you're down to $200. I commented on that video to talk about your food and you ask me what your budget should be and I was afraid to say because I didnt wanna scare you by saying it should be $200 so I'm really glad to see that it's $200 now
I am soooo glad that you are such a famous YT that is willing to talk about finances and how to save money 💰!!! All the rest of these famous YT talk about are hauls, monthly favourites all these stupid material things! Kudos to you! You are truly an inspiration!!! Keep this up! Keep up these videos!!
If you are ahead on your student loan payment you should be able to call in payment and have it directed to principal only. Making the payments online while convenient puts the funds towards interest, with very little to principal. Also, make sure you are claiming your interest on yearly taxes. Since you have high student loans it does not hurt to look into refinancing and combining both. You will be saving on the interest
Aja, you should absolutely consider Sofi. I refinanced my MASSIVE law school loan with Sofi and they cut my interest rate by nearly half. Although I am making slightly higher monthly payments than I was with Nelnet and a private school loan, the time to pay my loan was also cut in HALF. When you refinance, be sure to do so with a referral code so you can get the $300 (or $500 I forgot how much I got) - they’ll deposit this amount into your account which is nice. Also, double check with a financial advisor regarding the Roth IRA. If you surpass a certain yearly income, you will actually be *penalized for contributing to a Roth because there are income limits for that account. So you may want to speak with a financial advisor and consider a Backdoor Roth IRA.
You are kicking my ass in the best way! There is so much here that i relate to that I just had to subscribe! I just finished my first full year of self employment, am currently in tax mode and the only debt I have are my student loans! Please keep making these video! Even if we don’t use the templates or the processes, we need people we respect to keep the conversation and hope going so we don’t bury our heads in the “sand” without ever taking charge of our finances! “Tell your money where to go”...best free advice I’ve gotten all year! Blessings to you Aja!
So, I'm in my junior year of high school and I had no idea of how budgeting worked until I found your videos. I'm so glad that you're talking about it because it opened my eyes to the fact I will soon have to look after myself. This has helped me to seriously think about my future for the first time in my life. That is so valuable . Thank you.
I'm about to turn 30 and I feel the pressure with bills. THANK YOU for being honest, its something people don't really talk about it like you said. The spreadsheet and your advice HELP SO MUCH!!!!!!
Omg THANK YOU FOR JUST BEING DAMN HONEST. honestly, were all in the same position and just to hear some inspiration on how to handle stuff like this in life is just awesome. Realest youtuber out there!!
I really love watching your budget videos. I remember I couldn't even look at at my student loans without literally breaking out into a sweat. I would have palpitations and experience an immense amount of anxiety. But once I faced the truth head on about how much I owed and what I was spending my money on (like you, food!), interestingly I felt more at ease. This sounds really stupid to be happy about, but in April, my student loan debt will be under 200K. I was able to get 35K paid off in 2017 and now I'm excited to see how much more I can knock off this year. Thanks for sharing your experience!
these have turned into my fave video series of yours! thank you for your honesty always! it is so helpful for actual application. i just added up all my income for the past couple months and my mind was blown because i always feel broke too, but in reality it's got a lot to do with being super aware of where your money is going! if not for all the dining out and gas for trips away i'd be livin the life!
I watch a lot of finance videos and don’t usually think much of them, but yours really hit me. You really portrayed emotion in your video and sincerity and humbleness. I hope you turn your situation around in life, I am cheering for you. You are great, and as important as money is take a moment to enjoy life and your health and your loved ones. ✨💖 sending positivity your way
I have no idea how I found your channel but I am so grateful I did it! Thank you for being so open and vulnerable and honest. I am also 31,and suffered a terrible depressive period in my early 20s, and even though I was pretty well off in the beginning and was earning quite a lot, i somehow sunk in debt after I spent every penny on useless shit. For myself, I found that if I have money, I will spend it. Whether it’s 20 or 2000. My goal is to diversify my income, save for a down payment, and buy an apartment to rent out, then two, and in the future, a 3rd one. My family was of working people, business was something that the other, bad, rich people do, and “it’s not for us normal folk”. My husband has been an entrepreneur his entire life, and even though I was fascinated by the freedom, I cannot help but notice that his money too burn a hole in his pocket, and even though he was a millionaire at the times when most people were starving, he has not kept any of it, except for the penthouse we used to live in. ( and that was not a planned investment either - he had the money, so he bought it during construction). This taught me that making money and being wise with money are completely separate things, and one should not distract from the other. Good luck Aja on your journey, I have been binge watching every video on your channel, and I’m obsessed 🖤🖤🖤
You are actually so cool Aja, I 100% believe you can pay off the debt and more !! We support your journey, thank you for sharing this because you didn't have to. But I am learning new things every day thanks to this series.
Hi Aja, I think you should pay the smaller loan first. And don't worry you will be fine. You are budgeting your money and it is all that matter. Don't think to much about what you could have done, but focus on what you are doing now. I am telling you this because I have spent too much time and energy thinking "I should have done this". Just a big sister advice (I'm 38) ❤️
I'm 32 and I'm in a bit of debt. by the end of 2018 I'll be debt free. I'm also saving for a down payment! I love budgeting. I started working on this mid may and I love it. Its hard at first but you get the hang of it. I'm putting every penny in its place! good for you on giving each dollar a job!
I would contact the company and find out how you can pay the extra amount towards the principal only. Some companies make it easy with an option online, others make it more difficult and make you send a check. Keep attacking that $30k loan and I wouldn't worry about consolidating the loans since you're attacking that debt (consolidating will take too much time and effort for very little savings on interest). Great video and amazing job earning that amount of income, how many years of hard work did it take to get to this point? Also so great to hear that you're wanting to attack the student loans head!
The interest first thing is a default for a lot of students loans. Call or write and set it up so that any excess goes to principle. It might be a challenge to get there but it’s totally worth it. Good luck with your journey and know that it’ll be worth it in the end
I would pay off the smaller student loan account first because there is a large difference in the amount due on the accounts! Awesome job to you and everyone else paying down debt! I tackled my CC debt a year and a half ago. Now I only owe $6,500 on my $27,000 student loan note! Freedom feels so close!
girl when you're paying your student loan, make sure you call and pay on the principal. they will automatically apply your payments to interest if you pay online or use autopay. this applies for any loan you have interest on!!
I think you are doing great with your finances. It’s so true you do need to pay attention to where your money goes. So easy to spend it all alway on the little things if not careful. Don’t be so hard on yourself. Making mistakes is part of life. You live and you learn I always say. To me being broke is not having food to eat, not being able to pay bills, and struggling to have your basic needs met. I’ve been there before unfortunately, but I got wiser, stronger, and more resilient from it. And I thank God everyday for helping me through it. I’m still considered poor in society’s eyes, but I feel blessed because of my family, friends, and my basic needs are met.
I am so glad you're honest and genuine about real life problems like money that no one teaches us in high school/college. Thank you I am excited to start budgeting!
I am 35 and I just paid down to 7k debt from 120k debt. And I am telling you, the loans and CC is no joke. Watch what you use with your CC. Those interest will kick your ass! Listen to Aja, she is legit and a very smart person. Good luck on your journey. I know you all can do if you put your mind to it.
Do not consolidate! Dave Ramsey is all about the snowball method. You need the mental boost of the smaller win by paying off that smaller loan first. Then you lump ALL of the money from that payment into the other payment! The next one actually ends up going faster because you're not bogged down with any other debt. Thank you for showing everyone this, because more people need to get out of debt.
Thank you so much for these videos! I often become overwhelmed when thinking about money. I'm the same way, I need to cut down on food spending and pay off my debts. Thank you for taking your experience and helping others not make the same mistakes! It takes a lot to be able to talk about this honestly and openly.
Love you, Aja! I wish I could give you. Some good advice but I have he same questions as you! I’m just so grateful that you put out these videos because I feel like we’re doing this all together. What an amazing community you have created!!!
Hey girl. You’re doing so well don’t get discouraged. Watch as many Dave Ramsey videos on TH-cam as you can get your hands on. He does not recommend consolidating your debt, you will feel so good once you get that 30k knocked out individually. I would personally focus more money towards your AES loan rather than into sinking funds and saving accounts. Imagine how fast you can save money once you don’t have any debt! Seriously listen to Dave Ramsey though, he has the answer to every question you have in the form of free content. He is awesome and has totally changed the course of my life. Keep doing it 💪🏼❤️❤️
You don’t know how helpful these are. I’m going to show this to my boyfriends little sister who is in middle school. I also love that you gave the shoutout to the lady who provided the templates. Many ppl “forget” their resources. Keep going, Aja!!!
Aja, thank you so much for putting this and yourself out there to help younger people like me prepare financially for my future. This was really great advice, and it encourages me to take charge of my own finances! It's easy to look at a lot of youtubers/social media influencers and think that they have it all and that life is a breeze, because people only show the glamorous side of things and less often choose to show the REAL side of things. Thank you for being transparent and and encouraging us to OWN our lives!!
Thanks so much for these videos. About to graduate from medical school and have been feeling super overwhelmed about the concept of budgeting and repayment. Keep making these!
Aja!!! I don't usually comment on your videos but I thought that I definitely should. First off, thank you for being so real and down to earth with us! You show all the facets of life - the highs and the lows - and for that I'm so appreciative and I love the fact that you speak so honestly and truthfully. Secondly, your budgeting videos are SO helpful - this one in particular really slapped me in the face. I'm only in first year university right now (I'm 19), but by the time I graduate undergrad, I'd have almost $30k in student loans. I get my loans and grants together and they get sent straight to my bank account (and some straight to my university to pay off tuition directly), and so I thought I had SO much money in my bank account. I definitely relate to the fact that I wasn't buying luxury goods (what student can afford any anyways), but through small purchases, I spent so much money I don't even know where it went - my bank account suddenly has barely any money! Even though I'm only in first year university, I wanted to get ahead and plan how I'll pay off my loans, so your video series has been IMMENSELY helpful - really knocked some sense into me and instilled how important budgeting is. Anyways, THANK YOU and I wish you the best of luck with your student loans! I know you can do it
My advice would be to not consolidate your loans and keep going with the smaller loan first. Make sure your extra payments are going to the principal. Usually there is a box you need to check that says something like “apply to principal”
I also have 2 different loan payment companies I have to pay. When I decide which loan I want pay off more I take a look at the amount left in principle and the loan interest rate. Your goal should be to pay off the higher interest rate because that will save you money over time. Also there should be an option where excess monthly payments can be applied to the principle balance. Before you decide to combine the loans see if the interest rate is lower than the cost of the higher loan. However if you think that paying off the smaller loan will motivate you into saving and paying more to your big loan then you should do that. We are rooting for you.
Thank you so much for sharing! Love how candid you are. I’ve always budgeted but watching these videos shows me new techniques and I really appreciate that! Be proud of yourself for this!! Keep it up!!
I had the same experience. I was feeling awful about not having much savings or being able to get the things I wanted and then I started budgeting and realized I was throwing away literally TENS OF THOUSANDS on food and clothes and makeup I never ever use. I wasn't broke I was just hella reckless. You're doing awesome. Dave Ramsey always recommends paying smaller debts off first since it creates a sense of success and can be slightly addictive haha
This is such a strong video, and it really hits home a lot of real life shit (in the best way). I am also a 31 years old woman and I started doing my budget because of you, so thank you for opening my eyes to the (horrible) world of finans and excel. Looking forward to more videos and all the best to you on your journey, xoxo from Denmark
We just paid off all of our student loans (my husband and I) yay! Let me tell you - a big reason we were able to do it is because we refinanced my husband's student loan b/c same thing was happening (payments all going to interest). We took out a low interest loan from our credit union for the full amount - paid off the student loans and just had the one low interest credit union loan to pay off and it went much quicker. The student loan companies are a sham. Good luck - you can do this!
PS - the interest you're paying is "future interest" that hasn't even occurred yet and likely won't occur because you are looking to pay it off. It sucks - refi fo sho!
So true! They need to teach us this kind of stuff financially in high school especially people like us who don’t have a rich upbringing and we are literally always trying to make it for ourselves and we work damn hard for our money because we earned it and we take out these loans because that’s our only option. I, myself spend a lot of money on just food and until budgeting I never knew how much I was spending besides the bills I was paying but I never knew that it was the rest of the stuff that’s where all my money was going to:/ loving your videos aja:)
Hi Aja, I love your budget videos! They're honest and really relatable. I would definitely suggest switching your loan payment plan. I would tackle the loan with the highest interest rate first by making large payments like your $1000 while making the minimum payment on the other. Or refinancing them into a single loan could be another option because that interest may be lower too. Hope this helps :)
These budget videos are great! My advice is consolidate if your credit is excellent and it will lower your overall interest rate. While the snowball method is motivational, with loans as huge as yours, your interest is building so rapidly that paying the smaller one might result in end loss interest wise. I'd say look into consolidation, improve your credit if need be, and start throwing at the huge one. It won't feel as rewarding but long term it could be better.
I too started to really strictly budget starting Jan 2018 and I"m so so glad to have found your channel and see you go through similar struggles with budgeting. You keep it real. Its crazy to think we let so much money go to stupid places when we're not keeping track. Not gonna lie..I'm glad I don't have the student loans you do, but we all have our own struggles. If you can refi your student loans to a lower rate then go for it. Otherwise I don't think there's an advantage? Good luck in April! =)
You should totally refinance. I am paying 1400 now per month, and before I was paying 900. Now over 1,000 is going towards principal whereas before only 300 was going towards principal. My interest rate went from 7.9% down to 4%. Its insane how much you can save. Especially if you have good credit. It is so encouraging for me to see the total go down every month.
Attack the smallest loan first! --> snowball method! yes it works if you stick to it I promise -> pay off the SMALLEST amount with the BIGGEST interest first!
Yes Aja consider consolidating the loans. Keep on mind only federal loans can only be consolidated with federal loans and same for private loans. Also make sure to consider the incentives you are giving up or gaining when you consolidate. Thanks for all your videos. I Seriously make me feel so less alone. Thanks for also showing real raw numbers. Love your channel. 😘
With Nelnet there is a portion that you can click under principal payment only because right now you are pre-paying the interest. That's what I did when I was paying off my student loans earlier.
I made payments to principal on top of the regular payment. You made need to auto pay the min amount due and made payments on top of that. I was able to get an interest deduction by auto paying the amount due. Not sure if that plan still exists.
Love the honesty. You are well on your way to becoming debt free and if your income stays that way for a while you will definitely become a millionaire! 🙌🏽
Yes yes yes! Liked this video before even watching! Always glad to hear your still motivated! Your going to look back at these video and be glad you started when you did 😉
I personally think you should continue your plan of aggressively paying off your smaller AES success loan while doing minimum payments on Nelnet. I’ve been a loyal follower of Dave Ramsey’s baby steps and I’m proud to say his plan (specifically the debt snowball) helped me pay off all my student loans. It took me 3.5 years to pay off ~$66K. For a quarter of that time, I was hardly making a dent on the principal of my highest loan. At times, it felt really discouraging and I would constantly question if I was making the right choice, because mathematically speaking, debt snowball is not the best method. However, paying off my smaller loans truly did motivate me and made me believe all my sacrifices would pay off. Once I paid off my two smaller loans, my largest one of $38K finally started to shrink down. And let me tell you, it felt AMAZING seeing that ugly fat number decrease. It feels more incredible now that it’s finally all gone, and I really couldn’t be happier. We’re all with you Aja, and the last thing you should feel is ashamed. You’re recognizing the debt you carry, seeing what a burden it is, and now actually doing something to get rid of it. I know the light seems dim, but as long as you still see it, you know exactly where you’re heading. You’ve got this!
Check things out before consolidating your loans, especially with a private lender. You might want to talk to your college financial aid office first as they can review the options. The terms can change dramatically. I did college planning in my state so can offer some insights offline.
Hi Aja. As someone who's also on a tight budget in order to achieve my goals I've benefited from encorperating more colour and style into my budget spreadsheet. I know it sounds silly but I don't shy away from the numbers at much if they're nicely colour coded with attractive fonts. Just an idea that may make this feel like less of a chore.
Hi Aja, love your videos and style. Here are a couple of recommendations. If you want to refinance your student loan here are some things to consider: How long have you been paying down your loan? In the first part of the loan life, most of your pmt goes to the interest of the loan. So, refinancing the loans will reset your schedule. Meaning, when you refinance you loan again, your payment could be lower ( if you have got a lower interest rate), but your pmt breakdown of interest vs principal will be heavily weighted to interest again. I would call your loan provider and as them if they can send you your historical monthly breakdown of principal and interest, so you can have a better idea what your pmt breakdown is right now, and how much interest and principal you paid to date. Or backfill your spreadsheet you are using right now to see where exactly you are at. How low can you refinance your loan? If you can find a loan that offers you 0.75% to 1% lower than what you are paying right now, it may be (may be) beneficial to refinance, but I would ask the loan underwriter to run you an analysis to see if it is actually the case. Some questions to ask: how much total interest will I be saving in the long run? How much will my first payment contributes to interest vs what I am paying right now. Other things to consider: Student loan deduction: Currently, taxpayers with a modified adjusted gross income of less than $80K ($165K if married filing jointly) can deduct up to $2,500 of student loan interest from their taxes, per year (What a fucking joke), and also if your MAGI is lower than $80K you might not be able to get this benefit. Roth IRA: For all the viewers out there, I would recommend thinking about opening a Roth IRA ASAP and contributing as much as you by the end of 2017 deadline (April 16). There are some nuances with Roth IRA, but the internet has vast amount of information for you to browse through. Some downfall of of Roth IRA are income limit, less contribution amount, and paying taxes upfront...etc. But, you get the follow benefits (to name a few): Take up to $10K for first time home buyer, can withdraw the money if you become permanent disability, can use it towards unreimbursed medical expenses that exceed 10 percent of adjusted gross income, can use it pay off back taxes and paying health insurance premiums while unemployed. Again, there are some nuances to these benefits that people should understand before withdrawing. For you Aja, it seems you are likely to hitting the income limit (I am not sure), so be careful about that, because Uncle Sam is always watching. I don't know your circumstances exactly, so this is just some high level comments. I would talk to your financial advisor to seek some professional opinion, since they know the nuts and bolts of your finances. Lastly, keep up the good work girl! Look at how much you have accomplished already, like paying off your car!!!! That’s a BIG step, so don’t get discouraged. Remember paying off a loan is a running a marathon. It’s a slow grind, not a sprint, and pacing is key! P.S. Hope you are feeling better. :)
Check with your student loan if you can go to their web site and specifically designate money to principal only. Like paying the mortgage for 13 months during the year instead of 12
You might like Dave Ramsey. He promotes the debt snowball (paying off the smallest loan quickly and then adding that money to the next loan, which you described doing). Of course you would save more if you paid off the loan with the higher interest rate first. There’s an app called Every Dollar that you can use to set up sinking funds and all these categories too. You can view the planned versus spent as in your excel file.
Aja. My advice for your student loan.....payoff the one you can in the shortest amount of time then take that money plus more if/when you can afford to and put it towards the principal of the other one. That's how my husband and I paid off ours....
Just fyi for Nelnet. I don’t have time to keep calling to make sure extra payments go to principal. If you schedule your extra payment online to go in same day as your regular/minimum payment is due then that extra payment will all go to principal. (It is so sad when you see how much goes to interest!) Thank you for sharing something that most people don’t normally talk about! We’re almost done paying off our student loans so just keep at it! IF you have a good credit score and are VERY disciplined you can also play the balance transfer “game” onto a credit card for 0% to help pay it down/pay less interest
Once again thanks for keeping it real!!! I love these videos. Regarding paying off more towards the bigger loan, I did that in January and kind of regret it now. My biggest loan is about 50k and my smaller loans are 10k and 6k. I did the SAME THING and got SO MAD that my payments for the 50k loan were literally just going towards interest and paid a 4k payment, where $20 when to principal, finally. But now I wish I would have put that towards the 6k loan so I could have probably paid it off by now. Just having 2 loan payments instead of 3 would be better than paying more towards the biggest loan I think. Just my experience and how I feel about it now! Again thanks for showing real numbers, I can totally relate (my salary is about 35k a year and I feel like I'm drowning in this fucking debt). You inspire me!! Keep it up.
Wow I'm from Russia and I don't have these problems. I mean the taxes are not so high and I don't have to pay student loans bc I have a full scholarship. Education here is not so expensive compared to the US. Though we have other problems like expensive (healthy) foods and utilities, even gym membership is not for a good price! So I've started budgeting too and you motivate me a lot! Thanks, Aja
I really love your budget videos! :) Made me start my own budget-journey and so far I managed to save this month around 200€ from my 750ish income, thanks for making me start! Oh and, I would probably pay both loans at the same time if it wouldn't cost much more at the end. You would need longer but be also progressing with the big one.
Your doing awesome! Try not to get overwhelmed... If your going to hammer away at the $30k loan it's not gonna matter what the interest rate is because it's gonna be gone so quickly... But because your other debt is larger it would make sense to refinance if it's going to save you money. Either way I don't think you can go wrong. Just stay the course! Love your videos!
congrats! stay committed and you will get there! I have been budgeting since I was 19 and got my first full time job - now I am in my mid-forties, debt-free. I feel so safe when I know what goes on in my life financially. Just an idea - spend a month monitoring your expenses. Use your phone app to keep a tally of where you spend however much you spend and then sit down and make a realistic budget, trimming out the excess and things/activities that do not enrich your life.
Thanks for posting this budget videos! I think it's great information for others, and you're right that it will help others feel like they're not alone. You're doing a great job! I think you're doing a great job and are on your way to a great place, probably in a much better place than a lot of other people - just know that you're working really hard at it!
Don't be too hard on yourself!!! The first 2-4 months of budgeting are really tough for everyone. What matters is you are trying! In earlier videos, you mentioned you were inspired by the DR method (not strictly following it.) My husband and I got out of debt with the DR method, so here's a few tidbits of advice based on our experience: 1) You should only refinance student loans if you can get a lower interest rate. Otherwise, don't bother. 2) You're probably going to pay all accrued interest on Nelnet for a little while if you've only been making minimum payments all this time. You have to pay all that off before you can finally start paying down your principal balance. Pro Tip: If I remember correctly, when you make payments, there's a box you can check that says something like "Do not advance due date." Check that box!!! Being "ahead" on payments just means that you've prepaid interest for future months. It will matter a LOT when you get to paying the principal. www.nelnet.com/faqs/#special-instruction-payments 3) You're trying to do too much at once. Don't worry about savings/retirement right now. Just intensely focus on paying off debt. Pay minimum payments on everything except your smallest debt, and pile all available cash on that smallest debt. Once that's done, then move to the next smallest. Pro Tip: If multiple loan groups make up your total Nelnet balance (or your AES Success balance for that matter), treat each loan group as a separate smaller loan and focus your extra monthly payments on JUST one at a time. There should be an option to "Pay by Group" to help you do that. (see example here: cdn.studentloanhero.com/wp-content/uploads/p4591-1.png ) You'll feel more little wins if you treat them that way! :) 4) You mentioned life insurance. You just need enough to cover your final expenses at this stage in life. Once you're married, or have a mortgage, or have kids, that changes. Studen loan debt dies with the person. If can get a small $10-15k 10-yr term policy (do NOT get whole life), you should be okay for now and should only be a few bucks a month. The fantastic news is you have a FABULOUS income to help you tackle this! Imagine how much and how quickly you could save if you didn't have any more payments! Don't get discouraged. You can do this!!!! :) Good luck! Rooting for you! P.S. Hope that wasn't overwhelming!
It's still quite amazing we can't deduct more than $2,500 in student loan interest when doing our taxes. The cost of college keeps going up as to interest rates and I just hope future generations will be able to deduct more than that in the years to come, if they still don't address private loans.
I know this video is old lol but if you still need help an idea for you to help bring down the debt is to put some of the debt on your credit cards if you can because [one] the monthly payments always get lower after you pay it off and [two] the interest hopefully will not be as crazy (shout-out to my mom for teaching me this)
Thanks for being so forthright with your budget videos! I also had a bad habit of blowing all my money on stupid stuff (latte here, gum there). Since making a budget, I've been able to save up those coins.
I would definitely advise paying down the loan with the higher interest rate first. Otherwise, you're paying more money in the end than you need to. So if the Nelnet one has a higher interest rate, definitely put your efforts toward paying that off even though it might feel like a huge mountain to climb!
Thanks for sharing this! I consolidated my 2 student loans together and I regret it. Just like when I took out the loans I was young and naive when that was offered to me... I love the idea of sinking funds. I’ll check her out and will definitely use this template.
OMGoodness! Thank you so much! I'm so glad you changed it to fit your needs! That is key! Keep at it! You're doing great and its SOOOOOO worth it!
So I clicked the link and the template is nowhere to be found. Just a program to purchase.
You are so brave for opening up about money. I wish more people talked about this in such an honest way!
Whether I agree or not with the way you budget and spend your money, I always hit 'like' on your budget videos because I really respect you for being so open vulnerable and honest with us. Thank-you. #Love&Respect x
Come on Aja, you’re doing great girl. You are the owner of your life and you’ve taken responsibility for it. I’m following you since a couple of years now and I’m enjoying especially these kind of videos since I’m not only learning from you, but also feeling inspired. Cheer up!! Big hug from Spain
" most americans are in debt but dont talk about it" yaass gurl. I Stumbled upon your 200k student debt video and kept seeing Dave Ramsey in the comment. Now Im hooked on budgeting. Girlllll you changed my finances 😂😂😂
no girl, YOU changed your finances! I opened your eyes but you're the one actively doing it. All you girl.
Hello, I love that you are so opened about budget. I am 35 and I started doing my budget when I was 22. My mom taught me but also at 22 I was $12k in debt already buying stupil things. I thankfully paid that off. I have been trying to teach my friends how to budget but they don't want to listen. There is nothing to be embarrassed about doing a budget. Most people need to know where their money goes. Continue doing a great job!
You're amazing. I discovered you because of your budget videos. So I've watched each moth now. You're food budget is great now I can't remember a 100% but I wanna say you're January budget you were eating like $1200 now you're down to $200. I commented on that video to talk about your food and you ask me what your budget should be and I was afraid to say because I didnt wanna scare you by saying it should be $200 so I'm really glad to see that it's $200 now
haha ya, it was pretty insane. Didn't realize how much money I spent on food!
I am soooo glad that you are such a famous YT that is willing to talk about finances and how to save money 💰!!! All the rest of these famous YT talk about are hauls, monthly favourites all these stupid material things! Kudos to you! You are truly an inspiration!!! Keep this up! Keep up these videos!!
If you are ahead on your student loan payment you should be able to call in payment and have it directed to principal only. Making the payments online while convenient puts the funds towards interest, with very little to principal. Also, make sure you are claiming your interest on yearly taxes. Since you have high student loans it does not hurt to look into refinancing and combining both. You will be saving on the interest
ya, I think I'll be doing that with SoFi.
Yes if you are going to make that 1k extra, do right after paying all the interest so it counts.
Aja, you should absolutely consider Sofi. I refinanced my MASSIVE law school loan with Sofi and they cut my interest rate by nearly half. Although I am making slightly higher monthly payments than I was with Nelnet and a private school loan, the time to pay my loan was also cut in HALF. When you refinance, be sure to do so with a referral code so you can get the $300 (or $500 I forgot how much I got) - they’ll deposit this amount into your account which is nice. Also, double check with a financial advisor regarding the Roth IRA. If you surpass a certain yearly income, you will actually be *penalized for contributing to a Roth because there are income limits for that account. So you may want to speak with a financial advisor and consider a Backdoor Roth IRA.
Your transparency and your honesty is so refreshing. So many people are going to reap benefits from what you’re putting out there. 👏
You are kicking my ass in the best way! There is so much here that i relate to that I just had to subscribe! I just finished my first full year of self employment, am currently in tax mode and the only debt I have are my student loans!
Please keep making these video! Even if we don’t use the templates or the processes, we need people we respect to keep the conversation and hope going so we don’t bury our heads in the “sand” without ever taking charge of our finances! “Tell your money where to go”...best free advice I’ve gotten all year! Blessings to you Aja!
So, I'm in my junior year of high school and I had no idea of how budgeting worked until I found your videos. I'm so glad that you're talking about it because it opened my eyes to the fact I will soon have to look after myself. This has helped me to seriously think about my future for the first time in my life. That is so valuable . Thank you.
I'm about to turn 30 and I feel the pressure with bills. THANK YOU for being honest, its something people don't really talk about it like you said. The spreadsheet and your advice HELP SO MUCH!!!!!!
Student loan system is US seems to be so sick. Good luck Aja, you will pay this off and sooner than you think you will worry about the mortgage!
Omg THANK YOU FOR JUST BEING DAMN HONEST. honestly, were all in the same position and just to hear some inspiration on how to handle stuff like this in life is just awesome. Realest youtuber out there!!
I really love watching your budget videos. I remember I couldn't even look at at my student loans without literally breaking out into a sweat. I would have palpitations and experience an immense amount of anxiety. But once I faced the truth head on about how much I owed and what I was spending my money on (like you, food!), interestingly I felt more at ease. This sounds really stupid to be happy about, but in April, my student loan debt will be under 200K. I was able to get 35K paid off in 2017 and now I'm excited to see how much more I can knock off this year. Thanks for sharing your experience!
7crysb7 that is absolutely amazing!! Congrats! Hopefully we can pay these off within a couple years
these have turned into my fave video series of yours! thank you for your honesty always! it is so helpful for actual application. i just added up all my income for the past couple months and my mind was blown because i always feel broke too, but in reality it's got a lot to do with being super aware of where your money is going! if not for all the dining out and gas for trips away i'd be livin the life!
I watch a lot of finance videos and don’t usually think much of them, but yours really hit me. You really portrayed emotion in your video and sincerity and humbleness. I hope you turn your situation around in life, I am cheering for you. You are great, and as important as money is take a moment to enjoy life and your health and your loved ones. ✨💖 sending positivity your way
I'm 31 and this gives me hope! Thank you for these budget videos and using real numbers.
Go girl! Because you’re kicking this so openly, you’re going to accomplish your goals, Aja!! ❤️ Love your videos.
I have no idea how I found your channel but I am so grateful I did it! Thank you for being so open and vulnerable and honest. I am also 31,and suffered a terrible depressive period in my early 20s, and even though I was pretty well off in the beginning and was earning quite a lot, i somehow sunk in debt after I spent every penny on useless shit. For myself, I found that if I have money, I will spend it. Whether it’s 20 or 2000. My goal is to diversify my income, save for a down payment, and buy an apartment to rent out, then two, and in the future, a 3rd one. My family was of working people, business was something that the other, bad, rich people do, and “it’s not for us normal folk”. My husband has been an entrepreneur his entire life, and even though I was fascinated by the freedom, I cannot help but notice that his money too burn a hole in his pocket, and even though he was a millionaire at the times when most people were starving, he has not kept any of it, except for the penthouse we used to live in. ( and that was not a planned investment either - he had the money, so he bought it during construction). This taught me that making money and being wise with money are completely separate things, and one should not distract from the other. Good luck Aja on your journey, I have been binge watching every video on your channel, and I’m obsessed 🖤🖤🖤
You are actually so cool Aja, I 100% believe you can pay off the debt and more !! We support your journey, thank you for sharing this because you didn't have to. But I am learning new things every day thanks to this series.
Hi Aja, I think you should pay the smaller loan first. And don't worry you will be fine. You are budgeting your money and it is all that matter. Don't think to much about what you could have done, but focus on what you are doing now. I am telling you this because I have spent too much time and energy thinking "I should have done this". Just a big sister advice (I'm 38) ❤️
I'm 32 and I'm in a bit of debt. by the end of 2018 I'll be debt free. I'm also saving for a down payment! I love budgeting. I started working on this mid may and I love it. Its hard at first but you get the hang of it. I'm putting every penny in its place! good for you on giving each dollar a job!
Thank you for being so transparent about budgeting and your financial struggles! It's making me be more conscious of how I manage my money.
I would contact the company and find out how you can pay the extra amount towards the principal only. Some companies make it easy with an option online, others make it more difficult and make you send a check. Keep attacking that $30k loan and I wouldn't worry about consolidating the loans since you're attacking that debt (consolidating will take too much time and effort for very little savings on interest). Great video and amazing job earning that amount of income, how many years of hard work did it take to get to this point? Also so great to hear that you're wanting to attack the student loans head!
TruFinancials agreed! Knock out the 35k loan first then attack the big one with a vengeance!
The interest first thing is a default for a lot of students loans. Call or write and set it up so that any excess goes to principle. It might be a challenge to get there but it’s totally worth it. Good luck with your journey and know that it’ll be worth it in the end
I would pay off the smaller student loan account first because there is a large difference in the amount due on the accounts! Awesome job to you and everyone else paying down debt! I tackled my CC debt a year and a half ago. Now I only owe $6,500 on my $27,000 student loan note! Freedom feels so close!
girl when you're paying your student loan, make sure you call and pay on the principal. they will automatically apply your payments to interest if you pay online or use autopay. this applies for any loan you have interest on!!
I think you are doing great with your finances. It’s so true you do need to pay attention to where your money goes. So easy to spend it all alway on the little things if not careful. Don’t be so hard on yourself. Making mistakes is part of life. You live and you learn I always say. To me being broke is not having food to eat, not being able to pay bills, and struggling to have your basic needs met. I’ve been there before unfortunately, but I got wiser, stronger, and more resilient from it. And I thank God everyday for helping me through it. I’m still considered poor in society’s eyes, but I feel blessed because of my family, friends, and my basic needs are met.
I am so glad you're honest and genuine about real life problems like money that no one teaches us in high school/college.
Thank you I am excited to start budgeting!
I am 35 and I just paid down to 7k debt from 120k debt. And I am telling you, the loans and CC is no joke. Watch what you use with your CC. Those interest will kick your ass! Listen to Aja, she is legit and a very smart person. Good luck on your journey. I know you all can do if you put your mind to it.
Do not consolidate! Dave Ramsey is all about the snowball method. You need the mental boost of the smaller win by paying off that smaller loan first. Then you lump ALL of the money from that payment into the other payment! The next one actually ends up going faster because you're not bogged down with any other debt. Thank you for showing everyone this, because more people need to get out of debt.
Thank you so much for these videos! I often become overwhelmed when thinking about money. I'm the same way, I need to cut down on food spending and pay off my debts. Thank you for taking your experience and helping others not make the same mistakes! It takes a lot to be able to talk about this honestly and openly.
Love you, Aja! I wish I could give you. Some good advice but I have he same questions as you! I’m just so grateful that you put out these videos because I feel like we’re doing this all together. What an amazing community you have created!!!
Hey girl. You’re doing so well don’t get discouraged. Watch as many Dave Ramsey videos on TH-cam as you can get your hands on. He does not recommend consolidating your debt, you will feel so good once you get that 30k knocked out individually. I would personally focus more money towards your AES loan rather than into sinking funds and saving accounts. Imagine how fast you can save money once you don’t have any debt! Seriously listen to Dave Ramsey though, he has the answer to every question you have in the form of free content. He is awesome and has totally changed the course of my life. Keep doing it 💪🏼❤️❤️
Love your honesty! Because you created these videos, I’ve now started to budget and read the Total Money Makeover. Your videos help keep me motivated!
congrats on starting your financial journey!
You don’t know how helpful these are. I’m going to show this to my boyfriends little sister who is in middle school. I also love that you gave the shoutout to the lady who provided the templates. Many ppl “forget” their resources. Keep going, Aja!!!
Aja, thank you so much for putting this and yourself out there to help younger people like me prepare financially for my future. This was really great advice, and it encourages me to take charge of my own finances! It's easy to look at a lot of youtubers/social media influencers and think that they have it all and that life is a breeze, because people only show the glamorous side of things and less often choose to show the REAL side of things. Thank you for being transparent and and encouraging us to OWN our lives!!
Thanks so much for these videos. About to graduate from medical school and have been feeling super overwhelmed about the concept of budgeting and repayment. Keep making these!
Aja, you are amazing. I love how open en real you are...
You inspire me!
Thank you so much!!! ❤️
Aja!!! I don't usually comment on your videos but I thought that I definitely should. First off, thank you for being so real and down to earth with us! You show all the facets of life - the highs and the lows - and for that I'm so appreciative and I love the fact that you speak so honestly and truthfully. Secondly, your budgeting videos are SO helpful - this one in particular really slapped me in the face. I'm only in first year university right now (I'm 19), but by the time I graduate undergrad, I'd have almost $30k in student loans. I get my loans and grants together and they get sent straight to my bank account (and some straight to my university to pay off tuition directly), and so I thought I had SO much money in my bank account. I definitely relate to the fact that I wasn't buying luxury goods (what student can afford any anyways), but through small purchases, I spent so much money I don't even know where it went - my bank account suddenly has barely any money! Even though I'm only in first year university, I wanted to get ahead and plan how I'll pay off my loans, so your video series has been IMMENSELY helpful - really knocked some sense into me and instilled how important budgeting is. Anyways, THANK YOU and I wish you the best of luck with your student loans! I know you can do it
you'll be so far ahead of the curve if you start budgeting now. Get it!
Thank you so much for sharing this and the spreadsheet! I think money is EVERYBODY'S secret struggle.
My advice would be to not consolidate your loans and keep going with the smaller loan first. Make sure your extra payments are going to the principal. Usually there is a box you need to check that says something like “apply to principal”
I love how you're so honest abut this. It makes me feel good.
Aweee I prefer when you hand write it. It’s therapeutic to watch 😅 ❤️
I also have 2 different loan payment companies I have to pay. When I decide which loan I want pay off more I take a look at the amount left in principle and the loan interest rate. Your goal should be to pay off the higher interest rate because that will save you money over time. Also there should be an option where excess monthly payments can be applied to the principle balance. Before you decide to combine the loans see if the interest rate is lower than the cost of the higher loan.
However if you think that paying off the smaller loan will motivate you into saving and paying more to your big loan then you should do that. We are rooting for you.
Thank you so much for sharing! Love how candid you are. I’ve always budgeted but watching these videos shows me new techniques and I really appreciate that! Be proud of yourself for this!! Keep it up!!
I had the same experience. I was feeling awful about not having much savings or being able to get the things I wanted and then I started budgeting and realized I was throwing away literally TENS OF THOUSANDS on food and clothes and makeup I never ever use. I wasn't broke I was just hella reckless. You're doing awesome. Dave Ramsey always recommends paying smaller debts off first since it creates a sense of success and can be slightly addictive haha
This is such a strong video, and it really hits home a lot of real life shit (in the best way). I am also a 31 years old woman and I started doing my budget because of you, so thank you for opening my eyes to the (horrible) world of finans and excel. Looking forward to more videos and all the best to you on your journey, xoxo from Denmark
We just paid off all of our student loans (my husband and I) yay! Let me tell you - a big reason we were able to do it is because we refinanced my husband's student loan b/c same thing was happening (payments all going to interest). We took out a low interest loan from our credit union for the full amount - paid off the student loans and just had the one low interest credit union loan to pay off and it went much quicker. The student loan companies are a sham. Good luck - you can do this!
PS - the interest you're paying is "future interest" that hasn't even occurred yet and likely won't occur because you are looking to pay it off. It sucks - refi fo sho!
So true! They need to teach us this kind of stuff financially in high school especially people like us who don’t have a rich upbringing and we are literally always trying to make it for ourselves and we work damn hard for our money because we earned it and we take out these loans because that’s our only option. I, myself spend a lot of money on just food and until budgeting I never knew how much I was spending besides the bills I was paying but I never knew that it was the rest of the stuff that’s where all my money was going to:/ loving your videos aja:)
I love how you keep it real. Budget life is never always perfect. Shit happens!
Love your budget videos and adulting videos in general, girl! I started budgeting this month because of your videos. You are not alone! 😁
Thank you for this very real video! Love your content, and I will definitely try out the new template! Good luck with your journey and you rock girl!
Hi Aja, I love your budget videos! They're honest and really relatable. I would definitely suggest switching your loan payment plan. I would tackle the loan with the highest interest rate first by making large payments like your $1000 while making the minimum payment on the other. Or refinancing them into a single loan could be another option because that interest may be lower too. Hope this helps :)
Thank you for being so transparent!!!! ❤️ I love watching your budgeting videos and it keeps me motivated to stay to my budget as well! Keep going 🙌🏽
These budget videos are great! My advice is consolidate if your credit is excellent and it will lower your overall interest rate. While the snowball method is motivational, with loans as huge as yours, your interest is building so rapidly that paying the smaller one might result in end loss interest wise. I'd say look into consolidation, improve your credit if need be, and start throwing at the huge one. It won't feel as rewarding but long term it could be better.
I too started to really strictly budget starting Jan 2018 and I"m so so glad to have found your channel and see you go through similar struggles with budgeting. You keep it real. Its crazy to think we let so much money go to stupid places when we're not keeping track. Not gonna lie..I'm glad I don't have the student loans you do, but we all have our own struggles. If you can refi your student loans to a lower rate then go for it. Otherwise I don't think there's an advantage? Good luck in April! =)
You should totally refinance. I am paying 1400 now per month, and before I was paying 900. Now over 1,000 is going towards principal whereas before only 300 was going towards principal. My interest rate went from 7.9% down to 4%. Its insane how much you can save. Especially if you have good credit. It is so encouraging for me to see the total go down every month.
Attack the smallest loan first! --> snowball method! yes it works if you stick to it I promise -> pay off the SMALLEST amount with the BIGGEST interest first!
Yes Aja consider consolidating the loans. Keep on mind only federal loans can only be consolidated with federal loans and same for private loans. Also make sure to consider the incentives you are giving up or gaining when you consolidate. Thanks for all your videos. I Seriously make me feel so less alone. Thanks for also showing real raw numbers. Love your channel. 😘
With Nelnet there is a portion that you can click under principal payment only because right now you are pre-paying the interest. That's what I did when I was paying off my student loans earlier.
I made payments to principal on top of the regular payment. You made need to auto pay the min amount due and made payments on top of that. I was able to get an interest deduction by auto paying the amount due. Not sure if that plan still exists.
As always, thank you for this series!! Really an eye opener!
Don’t consolidate your student loans. Dave Ramsey has several videos on this you could reference. You’re doing great! Just keep up the good work.
Love the honesty. You are well on your way to becoming debt free and if your income stays that way for a while you will definitely become a millionaire! 🙌🏽
Love this topic about budgeting, thanks for making a vid about this. So relatable !! Trying to be a home owner here as well by 31.
Thank you Aja! I downloaded your template and just started budgeting for the first time. Had no clue I spent so much eating out and at cvs 😞
Wow that completely sounds like my month. I had to stop tracking my budget for the same exact reasons. Your videos have been helping me also.
Yes yes yes! Liked this video before even watching! Always glad to hear your still motivated! Your going to look back at these video and be glad you started when you did 😉
I personally think you should continue your plan of aggressively paying off your smaller AES success loan while doing minimum payments on Nelnet. I’ve been a loyal follower of Dave Ramsey’s baby steps and I’m proud to say his plan (specifically the debt snowball) helped me pay off all my student loans. It took me 3.5 years to pay off ~$66K. For a quarter of that time, I was hardly making a dent on the principal of my highest loan. At times, it felt really discouraging and I would constantly question if I was making the right choice, because mathematically speaking, debt snowball is not the best method. However, paying off my smaller loans truly did motivate me and made me believe all my sacrifices would pay off. Once I paid off my two smaller loans, my largest one of $38K finally started to shrink down. And let me tell you, it felt AMAZING seeing that ugly fat number decrease. It feels more incredible now that it’s finally all gone, and I really couldn’t be happier. We’re all with you Aja, and the last thing you should feel is ashamed. You’re recognizing the debt you carry, seeing what a burden it is, and now actually doing something to get rid of it. I know the light seems dim, but as long as you still see it, you know exactly where you’re heading. You’ve got this!
Check things out before consolidating your loans, especially with a private lender. You might want to talk to your college financial aid office first as they can review the options. The terms can change dramatically. I did college planning in my state so can offer some insights offline.
For payments to aes account, you have to call them directly and tell them that you want to make the payment to the principle.
Love how transparent you are!
Hi Aja. As someone who's also on a tight budget in order to achieve my goals I've benefited from encorperating more colour and style into my budget spreadsheet. I know it sounds silly but I don't shy away from the numbers at much if they're nicely colour coded with attractive fonts. Just an idea that may make this feel like less of a chore.
Hi Aja, love your videos and style. Here are a couple of recommendations.
If you want to refinance your student loan here are some things to consider:
How long have you been paying down your loan? In the first part of the loan life, most of your pmt goes to the interest of the loan. So, refinancing the loans will reset your schedule. Meaning, when you refinance you loan again, your payment could be lower ( if you have got a lower interest rate), but your pmt breakdown of interest vs principal will be heavily weighted to interest again. I would call your loan provider and as them if they can send you your historical monthly breakdown of principal and interest, so you can have a better idea what your pmt breakdown is right now, and how much interest and principal you paid to date. Or backfill your spreadsheet you are using right now to see where exactly you are at.
How low can you refinance your loan? If you can find a loan that offers you 0.75% to 1% lower than what you are paying right now, it may be (may be) beneficial to refinance, but I would ask the loan underwriter to run you an analysis to see if it is actually the case. Some questions to ask: how much total interest will I be saving in the long run? How much will my first payment contributes to interest vs what I am paying right now.
Other things to consider:
Student loan deduction: Currently, taxpayers with a modified adjusted gross income of less than $80K ($165K if married filing jointly) can deduct up to $2,500 of student loan interest from their taxes, per year (What a fucking joke), and also if your MAGI is lower than $80K you might not be able to get this benefit.
Roth IRA: For all the viewers out there, I would recommend thinking about opening a Roth IRA ASAP and contributing as much as you by the end of 2017 deadline (April 16). There are some nuances with Roth IRA, but the internet has vast amount of information for you to browse through. Some downfall of of Roth IRA are income limit, less contribution amount, and paying taxes upfront...etc. But, you get the follow benefits (to name a few): Take up to $10K for first time home buyer, can withdraw the money if you become permanent disability, can use it towards unreimbursed medical expenses that exceed 10 percent of adjusted gross income, can use it pay off back taxes and paying health insurance premiums while unemployed. Again, there are some nuances to these benefits that people should understand before withdrawing. For you Aja, it seems you are likely to hitting the income limit (I am not sure), so be careful about that, because Uncle Sam is always watching.
I don't know your circumstances exactly, so this is just some high level comments. I would talk to your financial advisor to seek some professional opinion, since they know the nuts and bolts of your finances.
Lastly, keep up the good work girl! Look at how much you have accomplished already, like paying off your car!!!! That’s a BIG step, so don’t get discouraged. Remember paying off a loan is a running a marathon. It’s a slow grind, not a sprint, and pacing is key!
P.S. Hope you are feeling better. :)
Hello Aja! YES! Pay your smaller loan off completely so that you can put MORE $ TOWARD YOUR PRINCIPLE.
Check with your student loan if you can go to their web site and specifically designate money to principal only. Like paying the mortgage for 13 months during the year instead of 12
You might like Dave Ramsey. He promotes the debt snowball (paying off the smallest loan quickly and then adding that money to the next loan, which you described doing). Of course you would save more if you paid off the loan with the higher interest rate first. There’s an app called Every Dollar that you can use to set up sinking funds and all these categories too. You can view the planned versus spent as in your excel file.
Aja. My advice for your student loan.....payoff the one you can in the shortest amount of time then take that money plus more if/when you can afford to and put it towards the principal of the other one. That's how my husband and I paid off ours....
You can do it Aja! gurl u got dis. thank you for this video
Giiiiirl I love this videos
Just fyi for Nelnet. I don’t have time to keep calling to make sure extra payments go to principal. If you schedule your extra payment online to go in same day as your regular/minimum payment is due then that extra payment will all go to principal. (It is so sad when you see how much goes to interest!)
Thank you for sharing something that most people don’t normally talk about! We’re almost done paying off our student loans so just keep at it!
IF you have a good credit score and are VERY disciplined you can also play the balance transfer “game” onto a credit card for 0% to help pay it down/pay less interest
Doing your financial marathon 😍
You have To call and set up that extra payments go to principal and not paying ahead monthly payment.
Once again thanks for keeping it real!!! I love these videos. Regarding paying off more towards the bigger loan, I did that in January and kind of regret it now. My biggest loan is about 50k and my smaller loans are 10k and 6k. I did the SAME THING and got SO MAD that my payments for the 50k loan were literally just going towards interest and paid a 4k payment, where $20 when to principal, finally. But now I wish I would have put that towards the 6k loan so I could have probably paid it off by now. Just having 2 loan payments instead of 3 would be better than paying more towards the biggest loan I think. Just my experience and how I feel about it now! Again thanks for showing real numbers, I can totally relate (my salary is about 35k a year and I feel like I'm drowning in this fucking debt). You inspire me!! Keep it up.
Wow I'm from Russia and I don't have these problems. I mean the taxes are not so high and I don't have to pay student loans bc I have a full scholarship. Education here is not so expensive compared to the US.
Though we have other problems like expensive (healthy) foods and utilities, even gym membership is not for a good price! So I've started budgeting too and you motivate me a lot! Thanks, Aja
I really love your budget videos! :) Made me start my own budget-journey and so far I managed to save this month around 200€ from my 750ish income, thanks for making me start!
Oh and, I would probably pay both loans at the same time if it wouldn't cost much more at the end. You would need longer but be also progressing with the big one.
Your doing awesome! Try not to get overwhelmed... If your going to hammer away at the $30k loan it's not gonna matter what the interest rate is because it's gonna be gone so quickly... But because your other debt is larger it would make sense to refinance if it's going to save you money. Either way I don't think you can go wrong. Just stay the course! Love your videos!
congrats! stay committed and you will get there!
I have been budgeting since I was 19 and got my first full time job - now I am in my mid-forties, debt-free. I feel so safe when I know what goes on in my life financially.
Just an idea - spend a month monitoring your expenses. Use your phone app to keep a tally of where you spend however much you spend and then sit down and make a realistic budget, trimming out the excess and things/activities that do not enrich your life.
Thanks for posting this budget videos! I think it's great information for others, and you're right that it will help others feel like they're not alone. You're doing a great job! I think you're doing a great job and are on your way to a great place, probably in a much better place than a lot of other people - just know that you're working really hard at it!
You'll tackle this in no time girl! Keep going! I graduated college last year and you've definitely inspired me to budget! Love love you!
TJ B budget now so you’re not in my position in 10 years!
Don't be too hard on yourself!!! The first 2-4 months of budgeting are really tough for everyone. What matters is you are trying! In earlier videos, you mentioned you were inspired by the DR method (not strictly following it.) My husband and I got out of debt with the DR method, so here's a few tidbits of advice based on our experience:
1) You should only refinance student loans if you can get a lower interest rate. Otherwise, don't bother.
2) You're probably going to pay all accrued interest on Nelnet for a little while if you've only been making minimum payments all this time. You have to pay all that off before you can finally start paying down your principal balance. Pro Tip: If I remember correctly, when you make payments, there's a box you can check that says something like "Do not advance due date." Check that box!!! Being "ahead" on payments just means that you've prepaid interest for future months. It will matter a LOT when you get to paying the principal. www.nelnet.com/faqs/#special-instruction-payments
3) You're trying to do too much at once. Don't worry about savings/retirement right now. Just intensely focus on paying off debt. Pay minimum payments on everything except your smallest debt, and pile all available cash on that smallest debt. Once that's done, then move to the next smallest. Pro Tip: If multiple loan groups make up your total Nelnet balance (or your AES Success balance for that matter), treat each loan group as a separate smaller loan and focus your extra monthly payments on JUST one at a time. There should be an option to "Pay by Group" to help you do that. (see example here: cdn.studentloanhero.com/wp-content/uploads/p4591-1.png ) You'll feel more little wins if you treat them that way! :)
4) You mentioned life insurance. You just need enough to cover your final expenses at this stage in life. Once you're married, or have a mortgage, or have kids, that changes. Studen loan debt dies with the person. If can get a small $10-15k 10-yr term policy (do NOT get whole life), you should be okay for now and should only be a few bucks a month.
The fantastic news is you have a FABULOUS income to help you tackle this! Imagine how much and how quickly you could save if you didn't have any more payments! Don't get discouraged. You can do this!!!! :) Good luck! Rooting for you!
P.S. Hope that wasn't overwhelming!
Thanks for being real and transparent!
It's still quite amazing we can't deduct more than $2,500 in student loan interest when doing our taxes. The cost of college keeps going up as to interest rates and I just hope future generations will be able to deduct more than that in the years to come, if they still don't address private loans.
I know this video is old lol but if you still need help an idea for you to help bring down the debt is to put some of the debt on your credit cards if you can because [one] the monthly payments always get lower after you pay it off and [two] the interest hopefully will not be as crazy (shout-out to my mom for teaching me this)
Your budget videos get me so excited ! Good luck on your journey 😘✨
Thanks for being so forthright with your budget videos! I also had a bad habit of blowing all my money on stupid stuff (latte here, gum there). Since making a budget, I've been able to save up those coins.
I would definitely advise paying down the loan with the higher interest rate first. Otherwise, you're paying more money in the end than you need to. So if the Nelnet one has a higher interest rate, definitely put your efforts toward paying that off even though it might feel like a huge mountain to climb!
Thanks for sharing this! I consolidated my 2 student loans together and I regret it. Just like when I took out the loans I was young and naive when that was offered to me... I love the idea of sinking funds. I’ll check her out and will definitely use this template.