I sure do miss Star Trek- BUT this is not about Space or even science fiction. It is about MILLENNIALS. My favorite magazine Kiplinger’s has started a new section for Millennials, which can be found at http://www.Kiplinger.com/links/millennials. Here is a summary of their first article, “How to Tame your Student Loans”
Bachelors degree recipients are expected to carry an average of $40,000 in student loans. Parents are carrying debt also, with an average amount of $21,000. This number goes up exponentially for grad students and specialty schools. To get a overview of repayment options visit http://www.kiplinger.com/links/rightway.
Aggressively paying down loans works for some, but not for most. You shouldn’t put every last penny toward your loans while neglecting your savings (and your future!) At the very least, put money toward your employers 401k or other retirement program to gain the employer match. To not do so would be throwing money away. Also important is to work toward an emergency money fund. Ideally six months, but any amount between one and six months is a good start. If you have high rate credit cards, pay them off before your lower rate student loans.
It definitely helps to have a plan. If you are not good at planning, get help. Financial advisors exist to do just that. Contact me if you need a recommendation. I’m always happy to help, because who you work with matters!