Trying to conquer $153k student loans debt. A monthly budget perspective.

[PharmacistFl12]

Hello fellow Pharmacist, I am posting this to show what life is like with heavy student loans debt and what it takes to conquer it. I have a goal of paying off $153k in 3 years. As you can see from my budget, paying off your student loans quickly is very doable as long as you stay focus, work hard and adhere to a very strict budget. I hope this provides some motivation to all of you.

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[owlegrad]

If I may be pessimistic, your budget doesn't leave much room for entertainment for three years and basically no room for unexpected expenses. Still, great goal and I wish you the best of luck. I do wish I had been more aggressive myself, but I will have my loans paid off next year (6 years after graduating). I could have done it this year but it would have left me living on a very tight budget, which I just have no desire to do.

 

[BMBiology]

What!? No money set aside to take your GF on a fancy vacation?

$153 k in student loans is not bad at all. It is very doable. Don’t forget to contribute to your 401 k (at least to the match).

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[pezdispenser]

Good job. Stay motivated and focused on throwing all your money at those loans. Listen to the Dave Ramsey show if you want motivation and tips. It'll definitely be worth it. Once they are gone you'll have an additional 4-5k/month in free cash flow.

If the $400 in savings is not your 401k, I would stop it. Just build up a 1k (if you want to live on the edge) - 20k emergency fund and stop adding to it. Most small emergencies you can just deal with in that monthly budget by reducing your extra student loan payment. You will have plenty of free cash flow to catch up on saving after your loans are paid off, and plenty of time if you do it in 3 years.

Keep hustling for extra work. I still think your best bet is prn pharmacist jobs.

Make sure your W4 is spot on so that you get no tax refund. A single person with 1 job who takes the standard deduction is supposed to claim 2 allowances.

I actually did some short term investing while I was paying off my loans, although it is a bit risky. Things like my ESPP with a 10% discount, hold for 90 days, then sell and use the money to pay off debt. I also get credit cards and bank accounts with $150-$250 sign on bonuses, totaling $1-2k per year.

 

[Swishers]

We have a very similar budget breakdown. You're gonna make it.

Don't forget to invest and have fun.

 

[a student]

Very similar situation here. I’ve been doing that for more than a year now. The hardest part about staying motivated is on those bad retail days when I really wanna buy myself a nice meal or drink, but those are outside my budget.

 

[BMBiology]

Very similar situation here. I’ve been doing that for more than a year now. The hardest part about staying motivated is on those bad retail days when I really wanna buy myself a nice meal or drink, but those are outside my budget.

If you need a nice meal or go on a vacation, just do it. If it takes you 4 years instead of 3 years, it is a bad trade off.

Your well being is more important. Invest in yourself.


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[PharmacistFl12]

What!? No money set aside to take your GF on a fancy vacation?

$153 k in student loans is not bad at all. It is very doable. Don’t forget to contribute to your 401 k (at least to the match).

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I might get a scolded for this but I dumped my girlfriend because it caused me too much money to drive and see her and spend money going out to eat.

 

[PharmacistFl12]

We have a very similar budget breakdown. You're gonna make it.

Don't forget to invest and have fun.

Not included in this budget is by 3% contribution to 401k to get company match. I vowed to not invest outside of 401k until student loans are paid off.

 

[PharmacistFl12]

If I may be pessimistic, your budget doesn't leave much room for entertainment for three years and basically no room for unexpected expenses. Still, great goal and I wish you the best of luck. I do wish I had been more aggressive myself, but I will have my loans paid off next year (6 years after graduating). I could have done it this year but it would have left me living on a very tight budget, which I just have no desire to do.

I will not take any vacation for the next 3 years. I am very frugal to begin with. My only entertainment for the next 3 years is going biking and jogging at my local park. This budget requires major sacrifice.

 

[PharmacistFl12]

Good job. Stay motivated and focused on throwing all your money at those loans. Listen to the Dave Ramsey show if you want motivation and tips. It'll definitely be worth it. Once they are gone you'll have an additional 4-5k/month in free cash flow.

If the $400 in savings is not your 401k, I would stop it. Just build up a 1k (if you want to live on the edge) - 20k emergency fund and stop adding to it. Most small emergencies you can just deal with in that monthly budget by reducing your extra student loan payment. You will have plenty of free cash flow to catch up on saving after your loans are paid off, and plenty of time if you do it in 3 years.

Keep hustling for extra work. I still think your best bet is prn pharmacist jobs.

Make sure your W4 is spot on so that you get no tax refund. A single person with 1 job who takes the standard deduction is supposed to claim 2 allowances.

I actually did some short term investing while I was paying off my loans, although it is a bit risky. Things like my ESPP with a 10% discount, hold for 90 days, then sell and use the money to pay off debt. I also get credit cards and bank accounts with $150-$250 sign on bonuses, totaling $1-2k per year.

W4 is a great idea. I need to free up more monthly cash now to put into student loans. PRN job is ideal but very difficult in this market. I work in retail for major corporation, they are very strict about working for anyone that is considered a competitor.

 

[BMBiology]

I might get a scolded for this but I dumped my girlfriend because it caused me too much money to drive and see her and spend money going out to eat.

You and Momus should hook up. Calling @Momus


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[wagrxm2000]

Hmm, pay off loans or make 20% this year on the market

 

[Momus]

Hello fellow Pharmacist, I am posting this to show what life is like with heavy student loans debt and what it takes to conquer it. I have a goal of paying off $153k in 3 years. As you can see from my budget, paying off your student loans quickly is very doable as long as you stay focus, work hard and adhere to a very strict budget. I hope this provides some motivation to all of you.View attachment 226746

Break down the utilities, I wanna see the details.

 

[Momus]

You and Momus should hook up. Calling @Momus


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I only like tacos.

 

[PharmacistFl12]

Break down the utilities, I wanna see the details.

Water= $100 Electiricty= $100-$135 Internet/Cable package= $157 Gas= $200 Food= $200. No phone bills because I'm part of my parents family plan, so they help me complete with that bill. Any "fun" money is from Bank of America Rewards card. I get $35-40 cash back monthly. Use that for beer money every other weekend.

 

[awval999]

I don't see car insurance. Congrats on the low mortgage. Is that the total PITI payment?

Thumbs up on the sacrifice though.

I would just say -- that I agree with BMBiology here -- you are destroying the loans. However, paying them off in 4 years instead of 3, may make these "loan repayment years" much more personally satisfying. Up to you though.

 

[PharmacistFl12]

I don't see car insurance. Congrats on the low mortgage. Is that the total PITI payment?

Thumbs up on the sacrifice though.

I would just say -- that I agree with BMBiology here -- you are destroying the loans. However, paying them off in 4 years instead of 3, may make these "loan repayment years" much more personally satisfying. Up to you though.

I got lucky. Bought my house during the lows of housing market. Got my house for half the price due to foreclosure. Car insurance is spaced out in installments of $100/month. It's already covered because by budget leaves wiggle room for $134 monthly of discretionary cash.

 

[wucool33]

I might get a scolded for this but I dumped my girlfriend because it caused me too much money to drive and see her and spend money going out to eat.

Just wait until you are married...

 

[CetiAlphaFive]

I might get a scolded for this but I dumped my girlfriend because it caused me too much money to drive and see her and spend money going out to eat.

Hahaha, oh wow.

 

[PolarPop]

I might get a scolded for this but I dumped my girlfriend because it caused me too much money to drive and see her and spend money going out to eat.

Did you consider asking her to move in so you can split your rent and massive utilities bill?

 

[PharmacistFl12]

Did you consider asking her to move in so you can split your rent and massive utilities bill?

No, she was unable to move in with me. She's a Pharmacist too at different district for another company. Couldn't get transfer near me.

 

[PharmacistFl12]

Just wait until you are married...

Hopefully by then I'll be done with my student loans. More financial freedom to splurge on the girl of my dream.

 

[wucool33]

Hopefully by then I'll be done with my student loans. More financial freedom to splurge on the girl of my dream.

Yeah... you are not going to splurge. It’s not in your DNA. What’s considered splurging to you will still be seen as being cheap in her eyes. Lol You just need to find a girl with the same mentality as you, but those girls usually are not too pleasant on the eye. Then again, looks aren’t everything...

 

[Momus]

Water= $100 Electiricty= $100-$135 Internet/Cable package= $157 Gas= $200 Food= $200. No phone bills because I'm part of my parents family plan, so they help me complete with that bill. Any "fun" money is from Bank of America Rewards card. I get $35-40 cash back monthly. Use that for beer money every other weekend.

Not bad at all but if you wanna be extra frugal (warning: this isn't for everyone) you can consider dropping cable, only use streaming services such as Netflix/Amazon prime. You can ask a friend/family to split the cost also. Torrent + VPN or Kodi for free shows.

Use artifical turf for grass to save water. And change your shower head to a low flow head + add a big block of stone/brick/bottle filled with stones into your toilet tank.

Change all your light bulb to LED bulbs. Unscrew a few of the bulbs if you don't need 4 bulbs ON at the same time. Don't have vampire drain on your electronics, unplug them if you don't use them in extended amount of time or use smart strips.

Don't run the cental heater, keep thermostat down. Use a space heater for a few hours instead of running central heat + good blanket.

Food budget is great! Hard to beat $200/mo/person. It's obvious to me you aren't eating out.

Hopefully by then I'll be done with my student loans. More financial freedom to splurge on the girl of my dream.

You obviously don't love this girl enough. Good call.

 

[lane one]

No, she was unable to move in with me. She's a Pharmacist too at different district for another company. Couldn't get transfer near me.

Not

No, she was unable to move in with me. She's a Pharmacist too at different district for another company. Couldn't get transfer near me.

...so you kicked her to the curb where she belongs. Savage. BTW when you meet your "dream girl" I don't recommend telling her this story.

 

[pharm B]

Good luck, OP. It can be really difficult to get others onboard with a thrifty lifestyle. I wish I could convince my family of the benefits of FIRE (Financial Independence/ Retire Early). Still hoping to shave ten years off of my working life and spend the time traveling more or working on other projects.

 

[PharmacistFl12]

Not

...so you kicked her to the curb where she belongs. Savage. BTW when you meet your "dream girl" I don't recommend telling her this story.

I missed her a lot though. Probably will never date a Pharmacist as pretty as her. I might try to win her back after my loans are gone in 3 years.

 

[Pharmacy Kid]

Momus is a female??

 

[Rouelle]

I missed her a lot though. Probably will never date a Pharmacist as pretty as her. I might try to win her back after my loans are gone in 3 years.

No dude, no

 

[Amicable Angora]

No dude, no

To the OP it’s either now or never. This three year plan is not going to work.

 

[Dipdoc]

I missed her a lot though. Probably will never date a Pharmacist as pretty as her. I might try to win her back after my loans are gone in 3 years.

She’ll probably be married to someone else by then.


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[nasacort24hr]

Interesting discussion. Why is it expected for guys to spend money on girls any way, if girls are just independent as guys? Especially that girl is a pharmacist herself. Also, why is it girls can't share a difficult time with a guy when he is struggling to pay off student loan? What is the thought of "try to win her back after my loans are gone in 3 years"? So if a girl only come back to you after you handled the tough time yourself, and come back to join you for the "good time", is it a girl you want to spend the rest of your life with? What if in the future something happen to you, financially, physically (health wise), will this girl be willing to take care of you, share the difficult time with you?

 

[nasacort24hr]

Yeah... you are not going to splurge. It’s not in your DNA. What’s considered splurging to you will still be seen as being cheap in her eyes. Lol You just need to find a girl with the same mentality as you, but those girls usually are not too pleasant on the eye. Then again, looks aren’t everything...

Can't agree any more. Why splurge on girls to win her? Materialistic satisfaction won't end, and one will only become more greedy and looking for more, if material is the thing that keeps the relationship. Sharing same value and perspective in life is more important in my opinion. Looks wise, it is quite true that good looking girl in general will have more option and won't tolerate "cheap guy" or to put up to share "hard time" with guys. The good looking one have way more option. But then, look is not everything if you have to put up with girls with that kind of attitude all day. Why be a slave to look when you are not sharing the same value? What if there is an accident and her look is damaged? Will you still treat her the same?

 

[Wickett]

I am doing similar (paying off 150k in loans in 30-36 months). I'm lucky in that I have no kids and don't live in a high COL area so I can be aggressive while still being comfortable. My first 5 months working I built up about 15k in emergency funds then started dumping into my loans.

After 401k match and health insurance, I average about 1900 every week. I get paid every Thursday, and that same day I make an 1150 payment to my loans like clockwork. I've been broke all before working so living off money in the high 30k range/year isn't that hard for me. I can still have some fun, have a car payment n rent, eat out some, etc while paying this albatross off asap. Keep it up.

 

[PharmacistFl12]

Interesting discussion. Why is it expected for guys to spend money on girls any way, if girls are just independent as guys? Especially that girl is a pharmacist herself. Also, why is it girls can't share a difficult time with a guy when he is struggling to pay off student loan? What is the thought of "try to win her back after my loans are gone in 3 years"? So if a girl only come back to you after you handled the tough time yourself, and come back to join you for the "good time", is it a girl you want to spend the rest of your life with? What if in the future something happen to you, financially, physically (health wise), will this girl be willing to take care of you, share the difficult time with you?

She's a Pharmacist with much smaller loans than me but I she expected me to pay of everything. She doesn't like "cheap guys". My large student loans debt bothered her a lot and she kept on nagging me about it.

 

[PharmacistFl12]

I am doing similar (paying off 150k in loans in 30-36 months). I'm lucky in that I have no kids and don't live in a high COL area so I can be aggressive while still being comfortable. My first 5 months working I built up about 15k in emergency funds then started dumping into my loans.

After 401k match and health insurance, I average about 1900 every week. I get paid every Thursday, and that same day I make an 1150 payment to my loans like clockwork. I've been broke all before working so living off money in the high 30k range/year isn't that hard for me. I can still have some fun, have a car payment n rent, eat out some, etc while paying this albatross off asap. Keep it up.

This is a very effective repayment plan. I really like how you're paying every week instead of doing just one large payment monthly. Paying more frequently will cut the amount of interests that accumulate monthly. I get paid bi-weekly. So I have automatic payment of $2,911. Then I make $700 extra every 2 weeks. I don't have kids either and live in cheap living area of Florida.

 

[BMBiology]

She's a Pharmacist with much smaller loans than me but I she expected me to pay of everything. She doesn't like "cheap guys". My large student loans debt bothered her a lot and she kept on nagging me about it.

She knows you have a lot of debt but she still wants you to pay for everything?

Your loans should bother her and you. There is no way around it. Welcome to being an adult. It sucks here.


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[Sine Cura]

I had a similar distribution of after-tax funds in 2016 based on my checking account statements. On a per-monthly basis:

Mortgage                     1,391 (16.8%)
Student loans                5,385 (64.9%)
All other withdrawals        1,522 (18.3%)

"All other withdrawals" covers all spending, utilities (Internet, Ting, Ooma, gas/electricity/water/garbage), vehicle gas, health care spending and after-tax contributions to Roth IRA ($5,500) so technically that's $12,764 left after IRA or $1,063 a month.

I did this with zero regard to budgeting BTW

You can do it and hoes ain't loyal.

 

[wucool33]

Jealous of all the low mortgage payments you guys have...

 

[CetiAlphaFive]

Jealous of all the low mortgage payments you guys have...

Same

 

[croquemonsieur]

The figure I find most impressive is $200 per month on food.

 

[PharmacistFl12]

Jealous of all the low mortgage payments you guys have...

Move to Florida!

 

[PharmacistFl12]

The figure I find most impressive is $200 per month on food.

Not hard to do at all. Because of my busy retail job, I skip lunch most of the time anyways. No time for breakfast either. So only 1 meal per day. Don't go out to eat or buy fast food and you will see it is easy to only stay under $200.

 

[PharmacistFl12]

I had a similar distribution of after-tax funds in 2016 based on my checking account statements. On a per-monthly basis:

Mortgage                     1,391 (16.8%)
Student loans                5,385 (64.9%)
All other withdrawals        1,522 (18.3%)

"All other withdrawals" covers all spending, utilities (Internet, Ting, Ooma, gas/electricity/water/garbage), vehicle gas, health care spending and after-tax contributions to Roth IRA ($5,500) so technically that's $12,764 left after IRA or $1,063 a month.

I did this with zero regard to budgeting BTW

You can do it and hoes ain't loyal.

We have very similar percentage of after tax going towards student loans. It's hard to dedicate over 60% of paycheck towards student loans but it will be all worth it in 3 years.

 

[Wickett]

This is a very effective repayment plan. I really like how you're paying every week instead of doing just one large payment monthly. Paying more frequently will cut the amount of interests that accumulate monthly. I get paid bi-weekly. So I have automatic payment of $2,911. Then I make $700 extra every 2 weeks. I don't have kids either and live in cheap living area of Florida.

Yea seeing the breakdown of how much more goes to principle doing it that way keeps me disciplined. I also quickly learned not to pay by default setting of all loan groups because it gets eaten up by interest payments. I pay the minimum amount due across all groups once a month when it forces me to and the rest is dumped into my highest interest loan. Doing it that way results in about 4200 a month going to principle and only a few hundred or so into interest.

 

[The_Rebirth]

She's a Pharmacist with much smaller loans than me but I she expected me to pay of everything. She doesn't like "cheap guys". My large student loans debt bothered her a lot and she kept on nagging me about it.

You're a grade A loser for even trying to """win her back""" lmaoo

 

[Zelda840]

Jealous of all the low mortgage payments you guys have...

$714 a month for my cute little 2 bedroom house in flyover country - woohoo!

 

[CetiAlphaFive]

You're a grade A loser for even trying to """win her back""" lmaoo

Glass houses, stones, etc

 

[The_Rebirth]

That doesn't add up, but good effort.