Pursuing higher education can seem like a crucial part of the “American dream” and many of us go on to college hoping to graduate and land a job we enjoy which also pays the bills. But unfortunately, as many of you know, there is a crushing student loan debt that comes with your degree. With all that debt, entrepreneurs who are money conscious and driven feel the need to repay all their debt as soon as possible! Why not make the money and pay it all off now, right?
But that’s not what the average person does and maybe it’s not what we have to do either. An article from 2014, cites this surprising fact:
The standard repayment plan for federal student loans puts borrowers on a 10-year track to pay off their debt, but research has shown the average bachelor’s degree holder takes 21 years to pay off his or her loans. (Source)
Based on that, the average person with a bachelor’s degree takes until they are in their mid-forties to pay off their loans. Not as quick as you thought everyone was paying them off!
To get real though, one of the reasons I got into business coaching was because of my husband’s massive student loan debt. I didn’t want us to be paying off his student loans forever and so this was a huge motivator for me. Many of you might have student loan debt or have a loved one that is crushed by student loan debt. It is an unfortunate reality that we have. Many of us want to pay this off as soon as we can so that it is no longer hanging over us and we can enjoy more financial freedom.
However, I have a confession. We haven’t paid more than the minimum required for his loan repayment even with my business expanding and growing. The truth is: I’ve been making big moves in my business. What this means for me is that I want to live this lifestyle sooner rather than later. I’ve always wanted to travel, see my family, get out more, and treat myself more with things that I love (not necessarily materialistic things!).
So rather than paying off more student loans, we have been taking trips, seeing family, traveling and enjoying what the present moment holds for us. We don’t have to wait to enjoy it! Additionally, I’ve also reinvested in my business so that I can further my impact and help more people live the life they want to!
Therefore, it is important to look at the whole of your life, not just this on small aspect. What do you want to be doing today?
Just because we are not paying these off as quickly as we could be, doesn’t mean we are not advancing! We are taking advantage of our fortune from this business. By reinvesting into my business and doing what I enjoy, I am able to help even more in their businesses.
In the end, take deep breaths, evaluate what you want your ideal life to look like, and take action towards living it NOW in the present. It will help you not just on a personal level but in becoming more successful in your business.
For more, view my video on student loans here.