After completing your community service we know you must be excited to be heading into Practice, however, there may be some financial stress on how to pay off possible student loans, and how to plan for the future when it comes to your finances.
This one is a game-changer. If you’re not already doing this, now’s the time to make a budget and stick to it. A zero-based monthly budget will show you exactly where your money is going and where you can cut back. (I’m looking at you, late-night menu. Those delicious wings can add up calorically and financially!)
When you stick to a budget, you might even find “extra” money you didn’t know you had, which is a way better plan than hoping to find R10 in your old jacket from your university days. Once you start throwing all that extra money at your student loans each month, you’ll start making progress in no time!
Check out a super easy budget template you can use to see where you are spending and how much you could save over time.
You’ve probably heard this one before. If you’re only paying the minimum payment each month, you’re not getting anywhere fast. You might not even be breaking even with the interest you’re piling up! By making larger payments, you’ll be able to attack the amount you owe at a quicker rate.
Remember when I brought up sacrifice earlier? Like saying no to late-night fast food? Here’s where it comes into play.
Look at your lifestyle. What extra stuff have you been living with that you can do without? Bye-bye, DSTV Premium package. See ya, boujee subscription boxes. Maybe cut your housing cost in half by finding a roommate. Do you have a second room that’s not getting much use these days? Rent that sucker out! Just think how quickly you could pay off your student loans if your housing costs were cut way down.
Now that we discussed a few ways how to pay off student debt, creating a financial plan and goal is important. Increase your savings and build a better foundation for future financial success:
The ultimate goal of saving is to reach financial independence, where you no longer need to work to live comfortably and safely and can spend your time however you like.
Have some fun and daydream about what you would do with all that free time.
Add in some shorter-term goals along the way like becoming debt-free or buying a new car or home. Finally, writing them down makes them more likely to happen.
Once you get past the daydreaming phase, you'll want your goals to be more concrete. They should be specific, measurable, achievable, realistic, and trackable. For example, taking a holiday when needed is a short-term achievable goal!
I know it's a cliche but once you decide how much you're going to save for your future goals, the best way to make sure that you actually do it is to set that money aside before you even have a chance to spend it.
Paying yourself should be roughly 20 - 30% of your total income. The rest is for savings or paying expenses and debts.
Quick example:
If you earn R10 000 after taxes your “real” spendable salary would be paying yourself between R2000 - R3000/month.
Divide that by 30 days and you have a daily allowance which is your disposable income.
Putting your money away in a piggy bank or under your mattress (#mattressmoney) each month does have its benefits, however, the money you saving loses its value over a period of time due to the increase of inflation. Putting your money into an investment account helps your money grow.
Check out one of our partners, Franc to start investing today from as little as R5!
LocumBase is a software as a service platform that connects medical professionals and practices directly with no hidden fees. We have over 4000 medical professionals signed up to our system across industries and over 500 active, medical practices.
Sign up to LocumBase here to start earning & saving!
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