1. Pay off one source of outstanding debt.
I’m sadly a poster girl for my generation when it comes to stupid financial decisions and truly believe that if the government extended the student loan payback grace period to a year versus six months from graduation, America would be a stronger place. I’m your classic tale:
- Graduate during recession
- Find underpaying job after three months
- Pay 1/3 of your monthly income toward loan
- Make up the difference on high interest credit card
Then when you finally make enough to live, you’re putting that toward your CC interest. It’s a vicious cycle, that I hopefully will be out of soon. I’m making steps. And even though I know that you’re supposed to pay off highest interest things first, there was a huge psychological hurdle cleared when I made my final student loan payment this year. And what’s left sucks, but I know I can do it. I’m also reassured that a lot of my spending (or delay in massive payments) has been to do amazing things like travel. I never bought a house or a car, and honestly I’d rather have credit card debt on experiences. It’s probably the worst advice to give anyone, but I’d rather have my stories than physical objects.
Next up: Coordinate one outing a month in a different San Francisco or Oakland neighborhood.