I am currently facing about 30 thousand dollars in student loan debt, which is closer to 40 thousand with the estimated accrued interest tacked on.
Now I also have been saving up my money and not spending frivolously, which is a huge part of passive income in my opinion. The mindset of frugality is important because it will allow you to take your earnings further than if you are a spendthrift.
So I just tallied up some of my numbers today and I’ve got just under 20 thousand in cash and investments. I’m not sure exactly what the best way to go is in terms of repaying that student loan debt versus keeping my investments going. But the loan is split up so that about three quarters of it is at 6.8 percent interest and the rest is at 3.6 or something.
Now there is no way that my investments are going to beat 6.8 percent or heck, even 3.6 percent at this point. So it makes sense to me to pay down this debt as quickly as possible.
Now I am currently not seeking a new job, I work for 11 bucks an hour or so 40 hours per week at a day job and I’m doing just fine there. I’m not looking for a “carreer job” in my field right now (marketing).
Instead I am going to try to put the pedal to the metal and ramp up my online income. This is bonus money that goes above and beyond my day job income. The question is: how long will it take me to save ten grand? Doing so will allow me to pretty much wipe out my student loans and be entirely debt free.
That is a worthy goal and one that motivates me.
What is even better is if I can do so by increasing my passive income from my websites. Of course the key in all of this has been to learn SEO in order to drive traffic to my websites and then monetize that traffic. If I can significantly increase my monthly income in order to pay off my debts, then once I become debt free I will be in that much better a position. I am currently using a new promotional service online that is enabling me to build links to my websites and thus increase traffic. This tool is very similar to the unique article wizard review that Court describes on his website. If you are trying to do the same thing and gain more traffic then you should check it out.
In fact my hope is that my passive income starts exceeding my day job income by the time this debt gets paid off in a year or two. This would afford me the freedom to focus on my websites full time or be able to quit my day job as well.
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