What they're not telling you about student loans....

What they're not telling you about student loans....
Raise your hand if you have student loans! Raise both hands if they're killing you LOL.

Last month I was able to reduce my student loans from $675 a month to $5 a month. Yes you read that right, $5 a month. 

How? I sat through a presentation from one of the leading experts on student loans and learned SO much.

You already know how passionate I am about getting out of debt and helping other's do the same. It's the reason I wrote the Ditch Your Debt in 30 Days course!

Here's the thing, any kind of debt sucks but student loans suck a heck of a lot more.

I'm a part of many debt payoff focused groups as well as financial independence groups and I've seen so many arguments around student loans.

There's the argument that states we should have known the costs when we took out the loans so we're not allowed to complain about what they're costing us now.

Let's talk about that one for a minute. I don't know about you but at 18 years old I didn't even know what I wanted to do for the rest of my life.  I had never taken out a loan before then.

Checking account - yup.
Savings account - yup.
Loans - nope.

Deciding on a major, a school and taking out loans feels like a whirlwind. I actually don't remember much of that process at all!

The lack of education in our schools around real life finances is a disgrace. But that's a conversation for another day. I honestly believe that student loan companies know what they're doing when it comes to "helping" students take out their first loans for school.

If they were really concerned with us knowing everything about the student loan process, they would make it easily accessible. And of course, we could have asked the questions, but I'm willing to bet most of us didn't even know the questions TO ask. At least I didn't.

So anyway, yes I take full responsibility for the amount of loans that I took out, but also student loans is a business and businesses make money when students take loans out. The longer the loans and the more money is taken out, the more money the student loan companies make.

So, do I believe these companies have our best interests at heart? Absolutely not. I've learned a lot since then.

Let's look at some facts (that blew my mind!):

1. 1.7 trillion dollars are owed in student loans by about 45 million Americans. That's about 1 in 4 working adults between 25 and 65 years old. And this number is set to double by the year 2028.

2. Student loan debt is the second biggest debt to mortgage loan debt. And the #1 reasons people are denied mortgages is directly related to student loan debt.

3. Tuition is growing about 8% every year while wages have remained pretty stagnant since the early 2000's

4. For every $1 you owe in student loans, thats a loss of $10 in retirement assets or savings. With the average student loan debt around $40,000, that's a loss of $400,000 in retirement.

People are afraid to start families, they're waiting longer to purchase homes, they're losing sleep over their monthly payments and feel that there's no way out. 

That's why I'm here, to help you reduce your monthly payment and work with you to save a ton of money on your loans so you can put it towards retirement and assets.

Trust me, I thought I had explored all avenues when it came to lowering my payments. I was happily surprised to learn that I had missed this one. I'd be happy to hop on a call and see if we can save you some money with your student loans as well. Click through to schedule a 15 minute Zoom call and answer a few questions with me.

xoxo,
Gwen


How To Stop Living Paycheck To Paycheck

How To Stop Living Paycheck To Paycheck

More than 50% of the U.S. Population lives paycheck to paycheck and over 62% don't have enough savings to cover an emergency. Sometimes we think “gosh, how did this happen?” but the truth is, we know how. 

Education is a business. Banks are a business. Marketing is a business. And it’s so easy to get caught up in keeping up with the Joneses, right?

So let’s talk about how to get yourself out of this rut. I'm going to show you how to solve it in three easy steps.

Step one, unsubscribe.

Raise your hand if you have Netflix. Now raise another hand if you have Hulu. And another...oh wait...no more hands! But how about Disney plus? Amazon Prime? HBO? 

I know, I know one show is on Netflix and the other show you watch is on Amazon and so how could you possibly pick just ONE to keep?

Well, when you're in financial stress, you're going to have to differentiate need versus want. So pick one and put the others to rest. We can sit here all day and say “but Netflix is only this amount of money, or Disney plus us only this much.” Ok yeah but how does it feel every month to squeeze by on paying your bills? The ones that keep you driving, or keep a roof over your head or food on the table? Let’s prioritize.

Step two, create a budget.

This is where most people say “I’m out!” and it’s because we already know our situation, we’re just scared to see it on paper. But this is where you get clarity on your income versus your expenses. Because when we tell our money where to go, we are in control, rather than our finances having control over us.

Trust me - this works. 

Step three, stop spending.

Yup, I said it. Have you ever looked at your bank account and wondered where all of your money goes? When you start to look at the nitty-gritty details of your expenses. We have coffees out here, we have dinners out there, online subscriptions yadda yadda. 

If you have money leftover at the end of the month, that's where you can take 10% of that and put it towards a “fun” account. Forty-five percent of it and put it towards your debts, and another 45% towards your savings or investments.

This is being in control of your money, not your money controlling you. This is opening your bank accounts and knowing, BELIEVING that you are abundant and will always have enough. 

If you want more tips on creating your best life, which includes your financial wellness, click the link below and join our free community where women just like you, are working on designing a life that they are truly in love with.

http://www.inspiredandready.com ← I’ll see you in there!

xoxo,
Gwen