During my senior year of college, I was obsessed with finding a job before graduation. I made spreadsheets, stalked recruiters on LinkedIn, and wrote what felt like hundreds of cover letters. I eventually did receive an offer, and after that, I was able to set my sights on my next goal: paying off my student loans.
I put my all into this endeavor, paying hundreds over the minimum each month. And, after getting a new job with a significant pay increase less than a year post-graduation, I increased my loan payments accordingly.
Accepting this new position also meant I would be moving to a major city in a different state, so I sold my ten-year-old car and put the few thousand dollars straight towards my loans. Between the small amount of cash I received for my car, my salary increase, and keeping my goal at the forefront of my mind, I managed to pay off my student loans on the last day of June. After paying off my student debt, I found myself in a place I hadn’t been since I was 16 with my first job: I had money to spend, but this time, I wouldn’t be wasting it at the mall.
The common advice for life after loans is to live like you did when you were paying off the debt, but I couldn’t bring myself to do that. I obsessed over my student loans; no matter how little I spent, I was always thinking about what I could cut to contribute more. I know this mentality is part of the reason I was able to pay them off so quickly, but once I became debt-free, I decided it was time to incorporate a bit of balance into my life.
Of course, after restricting yourself for so long, it’s only natural that you’ll want to go a little crazy, right? I knew lifestyle inflation could be the difference between financial freedom and a mountain of debt, but I’d been restrictive for so long. I wanted to remain financially responsible, while having a little fun. So, I implemented a few changes:
1. Increased my 401(k) contribution
Previously, I was contributing 10% of my salary to my 401(k), but I decided to increase this to 12%.
2. Boosted my savings
I increased my savings from $500 to $1,000 per month. While I’m not currently saving for anything specific, I plan to use a portion of this as my emergency fund, and I will reassess as I refine my financial goals. For now, it just feels nice to watch the balance increase.
3. Established sinking funds
In addition to setting aside money for bills and savings, I also have a few short-term savings accounts. I took things that I normally hate spending money on, like going to the hair salon and buying new clothes for work, and created separate accounts to set aside money. This way, I don’t have to feel guilty about spikes in spending; I’ve planned for them.
Life after loans looks different; it’s less stressful. I’m able to save aggressively, but I also feel more comfortable spending money on the things I want because I’m not constantly thinking about how it would be better off going towards my debt. I’m finally starting to achieve balance and a sense of security in my financial life, and there’s no better feeling.
A writer's budget 