Case Study on Max, single, early 20’s. Max’s Annual Income: $20,000 Debt: $40,000 College Loans Max’s goal: to earn a masters degree.
Here are a few recommendations to help make your journey a bit easier:
- Keep paying down your debt and never miss a payment. If you miss any payments your credit history will damage your financial future because it will effect your credit score and credit rating. Your credit score is used by the financial industry to evaluate your creditworthiness. Your creditworthiness is analyzed when you apply for car loans, mortgages and credit cards; these will all be a big part of your financial future.
- Live within your means. To help you accomplish that, set a budget and follow it!!
- Find a job that might pay for your future education. If you work for a company that specializes in the field that you are studying in, sometimes the employer will pay for your education during your employment. Going this route will take longer to complete your education, but the benefit is that you will incur less debt along the way.