How to Pay off Your Student Loans | The Ten Dollar Rule $10
Student loans are one of the worst parts of college. They are especially bad if you do not plan for them. Of course, you should do all that you can do to create a plan to pay off your debts. However, there is a great method you can use to start saving for the day your student loans become due and your interest starts building up. You can even start while you are still in school, or before you even enter college!
As students, most of us pay for our dorm rooming, our food at the dining hall, and lots of other every day costs such as books and laundry without using cash. We never have to spend cash on these items, because they are built into our tuition, or we can easily charge them to our school account. The crazy part of this is that, often times, these tuition payments and charges to school accounts are funded through student debt.
Most of us poor students do not use cash too often because of this. However, when you go out for some food or to hit a bar or club, you are probably using cash! While out having a good time, you canemployagood trick to start saving money to pay off your student loans. Just follow these simple steps:
1. Get a big glass jar or treasure chest type container. Label it “My Ticket Out of the Rat Race” (Read the book Rich Dad Poor Dad for more info on the Rat Race and how to get out of it and become rich)
2. Each time you receive a ten dollar bill as change at a store, bar, restaurant, or anywhere else you spend cash, save it. Put it in a separate pocket or put it in a separate part of your wallet or purse. Just do not spend it. I don’t care if you’ve spent all of your other cash and cannot get that last drink or those munchies on the way home. Save it!
3. When you get home, put the ten dollar bill or bills that you saved into the Rat Race Fund jar.
4. DO NOT dip your hands into the Rat Race Fund! Not even if you’re going to miss Two for Tuesdays or Thirsty Thursday’s at your favorite watering hole. This money is not to be spent on booze or other trivial things. This is a fund to pay off your debt for the 4 or 5 years of partying you’re having.
5. If you do not trust yourself or your roommates with a big jar of money in the house, think about opening a savings account as your Rat Race Fund outgrows its container. If you do this, you should open a separate account from the account that you usually use. You do not want to accidentally spend your Rat Race Fund and you want to be able to easily track how much money you are saving from the ten dollar bill trick You could even make a habit of making a deposit one time a month, by unloading all of those $10 bills into your Rat Race Fund savings account. Then, you could track how many bills you are saving each month to help you get out of the Rat Race
This is one small method you can use to help pay off your student loans. If you have not planned for repaying your student loans yet, start now! If you have already paid off your student loans, use the ten dollar bill trick to save for something else (maybe an investment in a cash flow property). Getting rid of your student loans will get you that much closer to getting out of the Rat Race and one step closer to freedom.