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Using a Budget to Pay Off Student Loans

Student loan debt has reached record levels in the United States and the job market for graduates has never been tougher, with experienced individuals beginning to fill more and more of the jobs college grads are applying for. Creating a budget and sticking to it is not easy for anybody, but it has become increasingly important that recent graduates set aside funds in order to pay back student loans.

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The first step in establishing this type of budget is to write out a list of all expenses. This list needs to be as thorough as possible because it's important to keep good track of all the money going into and out of the pocket.

Student loan payments are a very significant portion of one's budget, and it is quite possible that it may be second only to rent as one of the largest expenses. Placing this expense as a priority towards the top of the list instead of trying find ways to squeeze it into the budget will go a long way in helping to establish a solid budget.

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Chances are you won't get your dream job immediately after graduating, but one strategy to keep up your morale is to pay yourself in addition to paying your bills. What that means is to set aside a small amount of money each paycheck to treat yourself. For example, it can get pretty frustrating if all of your income goes towards rent, student loans, food, and other essentials. By setting aside say, $20 a month, to treat yourself, it can help cheer you up as you remain focused on the ultimate goal: paying off student loan debt as soon as possible. 


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