If you are working to pay off student loans, you may be wondering if it is okay to spend your money on other items or if you should be left only paying off your debt until it is gone.
Let’s face it. Student loan debt is a huge expense and a burden on many people. If you are paying yours off, you are probably limiting yourself and giving up many of the things that you like to do.
There are times that it is okay for you to spend some of your money and you should never feel bad about it. Below, we will go over some of those times that it is okay to spend additional money without sending it all to your federal loans or private student loans.
1. A Large Celebration of Something
If you have reached a large milestone in your life, it is okay to spend some of your money while still paying off of your student debt.
For example, if you have met a financial milestone when paying off your student loan debt, you can celebrate with a night on the town or a dinner. Other celebrations include a promotion, wedding, etc.
2. Spending to Save
You have heard the term “time is money”. This is true and it is essential for you to always be spending your time wisely. If you are able to spend some money to make more money in return, it is worth the investment.
For instance, if you have a large home and it takes you three hours to clean it every Saturday, but you could work three hours and make triple the amount you would spend on a cleaning company, do it.
There are times when it makes more sense to go ahead and spend a small amount to then move forward and make more in the long run. You must weigh the pros and cons before you decide to do anything to make sure it fits in with your current budget.
3. Necessities and Emergencies
If you have an emergency arise that needs to be handled, it is important that you handle it. You can put aside some money for emergencies, but you cannot plan for everything. If you find that your emergency requires you to spend an additional $100, do it because it is an emergency.
Another time to spend money while paying off your student loan debt is when you have necessities that need to be handled. For instance, if your health is declining and you need to see a doctor, it is okay to spend the money to do so. Sacrificing your health for money is not going to get you very far.
4. Saving Costs You More
If saving money now is going to cost you more money in the long run, spend the money now and avoid the higher price. For example, if you know that your refrigerator is wearing down and needs a repair, pay now to have it repaired to avoid the cost of replacement.
As you pay down your student loan debt, you do not want to cause more trouble for yourself by avoiding payments or pushing things off until they end up costing more. While it is important to pay down this debt, you should allocate your money wisely so that you are not left with more debt than what you started with.
The above four instances are times when it is okay for you to spend additional money even when you are paying down your debt.
Author: Jeff Gitlen
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