How I Crushed $50K in Student Loans and Started Investing

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Student loans can feel like a financial anchor, weighing you down before you even start your career. I was in that boat, staring at a mountain of debt and wondering how I’d ever be financially free. But after years of careful planning, discipline, and a few smart money moves, I not only paid off my student loans but also kickstarted my investment journey. If you're struggling with debt and want to achieve financial freedom, here’s how I did it—and how you can too.

Step 1: Understanding My Student Loan Debt

Before making any moves, I needed to fully understand my student loans. Like many students, I had multiple loans with different interest rates, terms, and repayment options. To get a clear picture, I:

• Listed all my loans, their balances, interest rates, and monthly payments.

• Prioritized the high-interest loans first, as they were costing me the most.

• Explored loan consolidation and refinancing options to lower my interest rates.

One major realization? The longer I waited to pay off my debt, the more I’d pay in interest. That was motivation enough to get aggressive with repayments.

Step 2: Cutting Expenses and Living Frugally

Once I knew how much I owed, I had to figure out where my money was going. I analyzed my spending and made some drastic cuts:

• Moved to a cheaper apartment and got a roommate.

• Cooked at home instead of eating out, saving about $200 per month.

• Used public transportation instead of owning a car, cutting costs on insurance, gas, and maintenance.

• Canceled subscriptions I didn’t need (bye-bye, multiple streaming services!).

• Stopped impulse shopping and only bought essentials.

By making these small but powerful changes, I freed up an extra $500 to $1,000 per month—money that went straight toward my student loan payments.

Step 3: Earning More Money Through Side Hustles

Cutting expenses was great, but I needed to increase my income to pay off my loans faster. That’s when I dived into side hustles. Here’s what I did:

• Freelance writing – Since I loved writing, I started creating content for websites and blogs.

• Tutoring – I used platforms like Wyzant and TutorMe to make extra cash helping students.

• Selling on eBay and Poshmark – I decluttered my closet and flipped items for profit.

• Gig economy jobs – I took up part-time shifts with UberEats and TaskRabbit.

These side gigs added an extra $1,500 per month, allowing me to double my loan payments. If you have a skill, hobby, or time, monetize it—you’d be surprised how much extra money you can earn.

Step 4: Using the Debt Snowball and Avalanche Methods

To accelerate my debt repayment, I followed the debt avalanche method:

1. Paid the minimum on all loans.

2. Directed extra money to the loan with the highest interest rate.

3. Once that was paid off, I moved to the next highest-interest loan.

This approach saved me hundreds of dollars in interest compared to the debt snowball method, which focuses on paying off the smallest balances first. But if you need quick wins to stay motivated, the debt snowball might work better for you.

Step 5: Transitioning from Debt Repayment to Investing

After paying off my student loans in five years, I had a huge chunk of freed-up income. Instead of inflating my lifestyle, I focused on investing and growing my wealth. Here’s how I started:

• Maxed out my 401(k) contributions to take advantage of employer matching (free money!).

• Opened a Roth IRA, contributing up to the annual limit.

• Invested in index funds and ETFs instead of stock-picking.

• Continued my side hustles, but now I directed the earnings toward investments instead of debt.

The beauty of investing early? Compound interest does the heavy lifting, making my money grow exponentially over time.

Step 6: Living Financially Free

Fast forward a few years, and I’m completely debt-free with a growing investment portfolio. This journey wasn’t just about getting rid of debt—it was about changing my financial habits and mindset. Now, I:

• Save at least 50% of my income

• Continue investing every month

• Enjoy financial peace of mind, knowing I don’t owe anyone a dime

If you’re in debt, know that financial freedom is possible. It takes discipline, sacrifice, and patience, but the reward is worth it. Your future self will thank you for the choices you make today.

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Conclusion

Paying off student loans and investing isn’t an overnight process, but it’s 100% doable with the right strategy. By cutting expenses, increasing income, using the debt avalanche method, and investing wisely, you can achieve financial freedom faster than you think. Take control of your finances today—your future self will thank you.

FAQs

1. Should I pay off my student loans first or start investing?
It depends on your loan interest rates. If your student loans have an interest rate above 6-7%, focus on paying them off first. If they’re lower, consider splitting your money between loan payments and investing.

2. How can I stay motivated while paying off debt?
Celebrate small wins! Every time you pay off a loan or reach a milestone, treat yourself (within reason). Also, join online communities for debt payoff inspiration.

3. What’s the best side hustle for paying off student loans?
The best side hustle is one that fits your skills and schedule. Freelancing, tutoring, and gig economy jobs are great starting points.

4. How much should I invest after paying off my loans?
A good rule of thumb is to invest at least 15-20% of your income. If you can do more, even better!

5. What are the best investments for beginners?
Index funds, ETFs, and a Roth IRA are great beginner-friendly investments. They’re low-cost, diversified, and perfect for long-term growth.