The 1% Plan: Tackling my Student Loan Debt

So I recently had a visit to my silly little blog from the author of How to Stuff Your Pig Blog. I was so intrigued by their blog’s name that I had to go check it out. I can’t use any identifying pronouns because I actually don’t know if this blog is written by one person or group.  What I do know is that I liked this week’s blog post!

It was a great post on the current state that most people in the US live in…the inability to cover a $400 emergency without selling or borrowing money.  I can definitely attest to the fact that I was one of those people a few months back. I lived paycheck to paycheck and didn’t have the savings in the place to cover the unexpected on many occasions. My solution was always to send a bill late or skip it…which of course added to my balances and affected my credit score.

I still need to work on creating a savings pool for big emergencies, but I’m in a good place to try and tackle two things – whittle down the student loans and start saving (even if it’s a small start).

So I’m going to try out this one percent idea….the concept that every week you put away 1% of your gross pay in to your savings account.  It’s not a huge percentage weekly. For many people cutting out one day of eating out or a few coffee runs will do it.  I decided I would go ahead and try to do both 1% to my savings and 1% to my student loans every Monday.

That 1% weekly payment to my student loans doesn’t seem like a lot on a monthly basis but when I multiplied it by 52 weeks, I was pleasantly surprised to see the total. That would be a huge impact to bringing that balance down.

So here goes nothing.  It seems to be a very good place to start!

3 thoughts on “The 1% Plan: Tackling my Student Loan Debt

  1. We definitely were in this position in the past! But we just had an emergency and it didn’t drown us, which made us feel so good! The 1% thing is a great idea! You should share how it has worked a year from now!

    Like

  2. Pingback: 1% rule update: Is it working? | the papercutting nerd

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