Getting out of debt.

[SeoProMatt]

If you can do it, go with option 1. Get free of debt earlier. 2 years is not long at all in the grand scheme of things. Dragging it on for 6-8 years, your expenses will likely increase as you get older, so what seemed like 8 years might become 10-12.

Overall, figure out what works better for your worldview, what you want from life at this moment. Either path can end up being great.

If you have a strong discipline and can do option 1, go for it. You will feel great and it might inspire you to be more successful further in life. To make it not feel like you have no life and time is lost, make sure to feed your mind with positive inspiring books, audiobooks. That can add a sense of purpose to your life during these grind 2 years. A sense that you are doing somethjng great for your future, that you are closer to be financially independent, closer to buying a house, etc if you can free yourself of this debt.

With the right mindset, option 2 can also be great. May be you could consider option 3 where you move with parents for 3-4 years pay off debt, but still spend some money and travel. Depends how good your relationships with parents are.

Great insight, best advice so far!

Why don't you work normal hours while also having another source of income. That way you can work normally and have some time to go out with friends

My job is going to make me 60k and I'm going to make 24-40k from affiliate marketing. The numbers above are already calculated with working normals hours at a job and side income.

I think I found this thread at the right time in my life lol. I know it sounds weird but thank you OP.

I wish you the best man!

 

[Henry IV]

Pay the debt asap. Also manage your expectations. A degree in operations management is worth less than than 1 yrs on the job experience and entry level OMs ain't making 60k anywhere. Be prepared that your 2yr goal will be more like 5yrs and realistically you will need to blend option 1 & 2 to enjoy life meantime. Be positive and you will smash through your goal, just probably not how you currently plan to.

 

[kasher9]

I think what a lot of these responses are forgetting is even if you are prudent, and make this lavish plan, you could run into any kind of issues in the next 2 years which prevent you from meeting your deadline. Which will just piss you off even more for giving up these 2 years.

Furthermore, you may run into more debt (credit card etc) now that you've graduated and will be somewhat independent.

I wouldn't personally recommend the first option to even my enemy, life doesn't work like that, you run into issues and it means you can't pay off you obligations as quick as you thought.

I agree with the living with the parents idea however, I think that's pretty good until you have a years worth of rent saved up, but other than that, I think both options are pretty big extremes.

Why not option 3?:

Set up allocated budgets and invest your money, it's what a lot of smart graduates with higher than average salaries have started to do:

$80,000 Earnings

($30,000 tax?? Don't know US tax system)

$50,000 Net Earnings

($10,000 Loan Repayment)
($20,000 savings in a 2-3% yearly guild/bond, anything that beats the interest rate of your student loan)
($10,000 Misc costs like car, food etc)
($10,000 towards leisure and self investment like courses/tools etc)

(btw the reason I know this works is because I used a similar strategy a few years ago, allbeit with my self employed earnings)

This would be a much more futuristic way of allocating your budget.

You have enough earnings to allocate a significant portion of your earnings towards a safe investment scheme that beats the interest rate on your student loan. Effectively means your money is financially benefiting by being in savings than being paid off for the loan.

And then, since I'm assuming you're on this forum for a reason, you need to allocate some money for self-investment. Tools are really expensive these days, and setting up a website isn't just $10 + $100 seo anymore...

 

[ExperimentalSEO]

Pay the debt asap. Also manage your expectations. A degree in operations management is worth less than than 1 yrs on the job experience and entry level OMs ain't making 60k anywhere. Be prepared that your 2yr goal will be more like 5yrs and realistically you will need to blend option 1 & 2 to enjoy life meantime. Be positive and you will smash through your goal, just probably not how you currently plan to.

Many companies will allow for the substitution of a few years of experience with education and there are entry level OM jobs with $60K starting salaries.

 

[PeterPerseo]

2!! Live your life NOW!

 

[AMG84]

Go after 1, at the same time find yourself a nice legitimate hustle to help out paying off your student loans and invest, invest, invest

 

[SeoProMatt]

Many companies will allow for the substitution of a few years of experience with education and there are entry level OM jobs with $60K starting salaries.

I did an internship with a company these last two years and already signed a contract for $67,500. But After taxes that's more like $50,000 Take home.

 

[mcdollof]

I vote for the first option 80 hours a week is not bad at all and you still got enough time to workout, go out a little and have a (not too time consuming) hobby. Depends on the tipe of person you are, but that sounds like fun to me

 

[SeoProMatt]

Okay, I think I've come to a conclusion.

Let's call it #3

When I first graduate, I am going to go crazy on my PRIVATE student loans (about half) and take care of those in 1-1.5 years by allocated 80% of my income to the loans by living with my parents. (They have 8%-10% interest so I need to get those paid off ASAP)

Then once I get to the federal loans that are like 3%-4% interest, I'm going to move out, slow down and start to travel and focus on other investments, thoughts?

 

[mcdollof]

Okay, I think I've come to a conclusion.

Let's call it #3

When I first graduate, I am going to go crazy on my PRIVATE student loans (about half) and take care of those in 1-1.5 years by allocated 80% of my income to the loans by living with my parents. (They have 8%-10% interest so I need to get those paid off ASAP)

Then once I get to the federal loans that are like 3%-4% interest, I'm going to move out, slow down and start to travel and focus on other investments, thoughts?

I think it's a great middle route to take. I just find the system of expensive education and student loans really sucky, glad you approach it so well. Thank god education in my country can be payed off with a summer job.

 

[SeoProMatt]

I think it's a great middle route to take. I just find the system of expensive education and student loans really sucky, glad you approach it so well. Thank god education in my country can be payed off with a summer job.

Yeah, it really sucks to be 20 with a net worth of -$100,000. I am determined to fight back though. Hopefully, when I'm 25 I can have the same net worth but without the negative

 

[Henrynewbie]

After watching motivational videos from Dan pena and Gary vee
#1 friends can suck it.
Work for 16 hours daily for the rest of the year
The things you will learn and archieve will change your life completely and you will be proud after the year. Plus you will develop a sick work ethic. RESPONSIBILITY.

#2 Act like the rest of your friends who are just retards and lazy.

Drink, go out and fart in bars till you are in your 30's.
POSTPONE YOUR RESPONSIBILITIES AND LOANS WHICH YOU CANNOT FILE BANKRUPCY.
live with your parents in your 30's maybe, or better yet take more morgatge , car, loans.
This way you can have something to bitch about with your friends in pubs or at Mac Donald's with your wife and kids how the world is fucked up.
.
. SUMMARY.
#1 means SUFFER NOW ENJOY LATER
#2 means ENJOY NOW SUFFER LATER

IT TAKES COURAGE TO WORK FULL TIME AND TAKE TIME TO WORK ON A SIDE HUSTLE. ITS NOT FOR EVERYONE

 

[Rj268]

Pay off the debt. Starting out life under water isnt good.

I worked 70-80 hours a week through most of my 20's. Most of that time I was living with my parents. I was never home because I was always working. It was will worth sacrificing a few years to set myself up. Its called goals and ambition and it sounds like you have them.

 

[umerjutt00]

It depends on what type of person you are... If you are not that outgoing, you would have no problem with the #1. Otherwise you will get exhausted with 2 and may even get depression or something.

 

[Henry IV]

I did an internship with a company these last two years and already signed a contract for $67,500. But After taxes that's more like $50,000 Take home.

Fair play then! I take it back

How much is your monthly payments on the debt? If it's like a coupla hundred dorrah who cares!! One day you'll get a mortgage and be paying that shit til you die, not all debt is cumbersome in my exp

 

[daveguy]

Option 2 for sure. If you're starting out at 80,000, your financial life is going to be just fine. Enjoy life.

 

[dragonfire5566]

How bad are your interest rates? Can you refinance with SoFi or someone? I would honestly not worry about paying it off within the next 10 years.

If your interest rates are decent on those loans, lets say 5% after SoFi, it makes more sense to invest in retirement or index funds where you'll get better than 5% avg return. I've dealt a lot with this in the past, live in SF now, feel free to PM me if you have questions.

 

[uncutu]

U should have made this a poll lol
I would go with option 1
Option 2 is stupid. Why waste time to party & go out with friends. Sure be social but are these people helping you make money, or draining time. Get 5-8 year head start with option 1. U can always party 10x harder once youre debt free and making serious cash online. It's better than making a little cash online and paying bar tabs while u still got big loans to pay off that are accumulating interest. If ur young u may feel need to get it out of your system and everyone else is doing it. Do U really want to be debt free and internet baller. Or half way there.

 

[SeoProMatt]

Fair play then! I take it back

How much is your monthly payments on the debt? If it's like a coupla hundred dorrah who cares!! One day you'll get a mortgage and be paying that shit til you die, not all debt is cumbersome in my exp

Total minimum monthly payment is gonna be like $600/month.

How bad are your interest rates? Can you refinance with SoFi or someone? I would honestly not worry about paying it off within the next 10 years.

If your interest rates are decent on those loans, lets say 5% after SoFi, it makes more sense to invest in retirement or index funds where you'll get better than 5% avg return. I've dealt a lot with this in the past, live in SF now, feel free to PM me if you have questions.

Half is 3%-4% interest the other half is 9%-10% interest.

U should have made this a poll lol
I would go with option 1
Option 2 is stupid. Why waste time to party & go out with friends. Sure be social but are these people helping you make money, or draining time. Get 5-8 year head start with option 1. U can always party 10x harder once youre debt free and making serious cash online. It's better than making a little cash online and paying bar tabs while u still got big loans to pay off that are accumulating interest. If ur young u may feel need to get it out of your system and everyone else is doing it. Do U really want to be debt free and internet baller. Or half way there.

Haha yeah I realized I should have made it a poll a little too late.

That's what I'm thinking too. I'm Just imagining myself being 23 debt-free making 100k/year. I could have one hell of a life while still investing responsibly.

 

[CryptoKujira]

I'm going to go opposite of everyone else.

If you feel like you can be debt free at 23 by working ridiculous hours for a year, you're way ahead of the game. I say go for it and get that debt monkey off your back.

I don't quite get the people saying get professional help. What's there to get help with? This isn't rocket science. Pay off higher interest debt first, then pay the rest. And of course, don't take on new debt where you can help. Then you have the rest of your life to enjoy living debt free, and building your wealth.