This week in USA Today’s series of Young and In Debt focuses on Kimberly Halbach. Kimberly is an MBA student with over $30,000 in student loans. Not only will she incur more debt from grad school, but she plans on perusing a law degree when she finishes her MBA, thus incurring more debt.
She does have a job that pays $30,000 a year, but still she’s having a hard time paying the bills. She says she would like to save money for the future, but is having a hard time doing so right now.
This week’s financial planner, Melissa Eckstein, was impressed with Kimberly’s handle of her finances using the envelope budgeting system. However, she did make some suggestions for Kimberly and young people like her.
- Use cash, not credit cards
- Track spending with a budget
- Payoff one debt at a time
- Increase 401k savings gradually, even if it’s just 1%
- Start an emergency fund
- Give yourself some wiggle room with your budget or you won’t stick with it.
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