With nearly 110K of student loans left to be paid, we have at least a few years to consider our next move. When we think about our future, it is fun to ask ourselves, “What would life be like without a monthly $1800 student loan payment?”.
I’m convinced most of our success with money is linked back to our self-awareness. Being aware of our risk tolerance, and keeping in mind lessons learned, often helps us to strategize more effectively for our futures.
“Only once we understand our debts and where our money is going, are we then able to begin the process of improving.” – From a guest post.
So, what does any of this have to do with our next move after student loans?
Knowing ourselves helps us reverse engineer our lifestyles.
For example, if travel is a high priority, especially before having children, then we should engineer a lifestyle that optimizes travel. Others may optimize for charity or family.
For more on the topic of reverse engineering, check out the podcast link:
Our Next Move After Paying Off Student Loans
Assess our goals and invest vigorously.
That’s our move.
Investing is more than deploying our working capital. Investing allows us to build a foundation yielding dividends for the rest of our lives.
Once all our tax advantaged accounts are maxed out, we plan on buying shares of Vanguard’s Total Stock Market Index. We’re fans of the low-cost and the broad-exposure to the US equities market.
As soon as the cash is rerouted to its new home — index funds — we will get back to living our lives as they were.
Like everyone else, we’re tempted to enhance our lifestyle by spending more. If we ever find ourselves in this type of situation, we’d be sure to follow our own advice regarding curbing lifestyle inflation.
Once we achieve a level of investing we’re happy with, something tells me our travel budget will be the first to go up.
In short, I see our 20’s as a great opportunity to enjoy life without indulging in too many luxuries. As we become older in our 30s and 40s, we’ll explore more of what life has to offer.
What’s your next move after paying off student loans? After paying off a mortgage?