from class to corporate

WARNING: i am about to be EXTREMELY transparent in hopes that it will encourage someone else. 

hi, my name is alysha and i am over $100,000 in debt. 

no, it's not because i have a ridiculously addiction to shopping (although, i really do have a shopping problem, but that belongs on another blog.) this debt has been accumulated while trying to better myself through higher education. i had no idea what i was getting myself into freshman year when i signed my first loan agreement and within seconds placed myself $18,000 in debt. 

i don't think any of us do. it isn't until four years later after we've experienced the happiest moment of our young adult lives, graduating college that we realize exactly six months later we'll have to pay for our happy years every month. furthermore, we don't realize HOW MUCH we'll have to pay for those years...every month. unfortunately, not one of my undergraduate classes prepared me for the horror which is my monthly loan bills. 

it wouldn't be so bad if i was in a job making 45k+, sitting in the shade drinking lemonade, and had ample amounts of extra cash. but, it is quite the contrary. i am a broke graduate counting my change in the mcdonald's drive thru. my loan providers have no remorse. when i call them to lower my payments, they tell me there's no way out. i didn't know signing a loan agreement was like signing over your soul to the devil. so now, i have a job i love dearly, but the money i make will soon not be enough for me to actually live and pay my loans at the same time. 

the crazy part is: i prepared for this. i calculated out how much i was going to have to pay every month after i graduated college. my estimates were way off to say the least. i honestly don't know what the answer is to this problem my fellow grads. what do you do when your skills qualify you for one salary, but your bank account asks for another? my answer is: you work and have faith. i know that some way, some how i will not go under. if it means getting another job, i'll do it. if it means changing jobs, i'll do it. applying to graduate school? i'll do it. (fyi: if you're going to graduate, they'll defer you longer as soon as you get an acceptance letter). 

bottom line is: don't stop fighting ladies and gents. if you're experiencing loan issues: 

#1 call your provider

if you get the right person on the phone, they may be able to help you. you have the most wiggle room with the federal government because they have several payment options. i called and had my payment split in half. (thanks jesus)

#2 know your options 

whether it's consolidation or forbearance, research what you can do. i don't really suggest forbearance because it's basically another deferment where interest continues to grow on your principal. however, if you seriously can't make payments, it's an option. consolidation is great if you have horrible interest rates. consolidate with a credit unions because they give better interest rates and have incentives with membership. you don't have to currently be a member of a credit union. there are sites online such as CuGrad that will help you through the process of becoming a member and consolidating. you can also try to consolidate through your current bank. sometimes they offer incentives if you bank with them and then consolidate with them. here's some additional information on options learn your options

#3 work your little booty off. 

set up a budget and save as much money as you can.  in the case of a emergency or if you're strapped for cash,  you can borrow from yourself. look for part time positions that are not stressful or difficult to take on for a short period of time. 

remember, all situations are temporary and all problems are fixable :]

thinking of ideas for my next post...i was thinking a resume breakdown. how many of you need assistance with your resume? what topics would you like me to write on? comment below & share this post with your friends. 

-AMB

Forbes Article

I know, personally, I didn't realize how much money it takes to live on your own. It wasn't until I realistically priced an apartment that I realized how difficult it would be for me to maintain one directly out of college. Unless you want to live with an apartment and that is all, you will have no money. Sometimes you can have just an apartment and STILL have money. Why? All the hidden expenses. You can't live in an apartment without heat, air, insurance, electricity, or savings. You really need three months of rent saved before you're prepared to move. 

I say all of this to say: as you begin working after college, you need to budget. 

I'm now working on a template for my monthly budget. I have monthly bills for loans, a credit card, and I'd like to purchase a cell phone separately from my parents. I need to record and track these expenses. I need to track my pay checks. It's important to know how much you make, how much is deducted for insurance, and how much you're contributing to your 401K. Some of you maybe thinking: retirement? This early? Yes. The sooner that you start, the more you have. Plus, most companies match your contribution or a portion of your contribution. Why not take advantage of that? 

Outline your expenses. Allot money for EVERYTHING. Not just the big bills, but the small expenses. For example, I can think of something to buy with every paycheck I make lol. So, I'm planning on allotting a certain amount I can spend on the desires of my heart. The basis of my budget is as follows: 

10% to God 

10% to Savings ( for the next couple months before my loan payments kick in, this will be increased)

80% to live on 

The 80% will be divided as well. I'm going to determine how much I think is acceptable to spend on entertainment( movies, dinners, nights out). I also am going to budget for gas and car related expenses  when I start driving at the end of October. There's so much more, but I won't bore you. It is essential to take everything into consideration.

The reality is 70% of Americans live paycheck to paycheck. I have no desire to work 40 hours a week and still be broke. How do we prevent this? Dumb logic would say "Well if you make enough money, you won't be broke" No. If you're a good steward over the money that is supplied to you, you won't be broke. You could be making $80,000 a year, if you don't manage it well you'll be left with zero. Make a plan and work your plan. ( When I find a budget template I like, I'll post it!) 

Be money smart :) 

-amb