How we paid off $92,170.21 of student loans in 4 years

We are finally debt-free! Well, not entirely. We do have a mortgage, but it doesn’t seem like debt since we would be paying rent if we didn’t have one. But anyway. I’m talking about student-loan free! I actually had a goal to have it completely paid off by the time I was 30, and I made it with over a year to spare! 

I had student debt of $92,170.21 CAD (about $70,600.00 USD) in loans. I didn’t really want to make this a “how-to post.” Instead, it’s a “how-we” post. I’m just sharing how we were able to get $92K plus interest (yikes...so.much.interest) paid off in 4 years and one month (on small incomes!). I don’t think we celebrate these things enough, nor talk about them nearly enough. I feel like this was an accomplishment in my life - finally paying for the education I got, so hence the post. 

A little bit of background: I would have never taken so many loans had I been educated on them. They told us about credit card debt in school, but never about student loans. Anyway, you already know I took them out. When that six month grace period was over and we needed to start paying loans back, I was not able to work. Because we were living out of the country, I was not allowed to submit that I was unable to work to hold off the interest incurring. That was a huge bummer, but we sucked it up, and started making payments - freshly married and living on one small income. Exceeeeept, they weren’t really payments. We were only able to afford barely above minimum payments, which meant we didn’t get any principal paid off. Year two rolled around, and I was finally able to work, however, I was barely making enough for groceries, so not much changed in the paying back area. I finally got a full-time job after that, and we knocked them out in 2 years after that.

So what did we do?

Well,

We faced the numbers

I feel like student loans are made complicated when it comes to paying them back. I mean, I could not get a straight number on the statements they were sending. Setting up a login so that I could see everything in depth and even making a few phone calls to the loan agents made life so much easier easier. Sure, it wasn’t pleasant seeing that huge number on the computer screen, but once we knew exactly what it was and what the numbers broke down into (principal, interest, etc.), we could come up with a solid plan. Using a loan calculator helped us make a goal and set how much we would need to pay off each month in order to succeed. That also was a little scary considering the salaries of a private school teacher and a pastor are already tiny, but we buckled down and accepted it.

We paid well above the minimum

Minimum payments are kind of a cruel thing. You basically pay the interest and don’t really end up paying anything off after months and months - even though you swear money is going in some kind of pot. Unless you are paying above the minimum, you are really not paying off the loan. My student debt was actually broken between 3 separate entities and during our repayment time, we always paid above the minimum for all three loans. How? Well, 

We lived off one income

Once I finally started working, about 85% of what I made (after tithe and charitable donations) went into paying off loans. On top of that, a percentage of what the husband made also went towards loans. So nice of him, considering he had zero student debt. That meant that we continued living as we always did - on one very small income. And it meant that we were putting almost $3,000 into our loans each month. I’m so glad we had this opportunity - it definitely gave us a leg up.

We Used the Debt Avalanche Method

As I mentioned, my student debt was from 3 parties. We took an evening to do some intense math and decided to pay off the one with the highest interest first, while still putting some into the other two. It just happened to be the largest one. Sure, it took a while, but after that, it was easy to knock out the other two in that descending order as well. We had also looked into the snowball effect, but for us, doing the opposite was better, since we were determined anyway. Plus, we hated that we were paying so much interest and wanted to minimize it as soon as possible.

We budgeted

A budget was key to paying off loans quickly. With two full-time incomes, it was tempting to put the extra money toward something else instead, but we both knew we wanted freedom from the debt that was just getting larger the longer we took to pay. There was one point that we started paying a little bit less in order to save up for a downpayment on our house, but we maintained paying over the minimum payments, and by that time, the largest $40K loan had already been paid off. A budget that allowed us to save a bit was necessary. We had to get creative sometimes to stay within budget, but that’s another post for another time. 

We did not incur more debt

Aside from the mortgage we got in year four, we refused to take on more unnecessary debt (of course, the mortgage was not unnecessary but more on that in a different post). For example, instead of buying a car from the lot with a payment plan during that time, we saved up for one year and purchased a used vehicle with cash instead. This saved us a lot and our car has served us well! Another thing we used was a credit card with cashback. We have never paid interest on our credit card because we never spend more than we actually have. As a result, cashback really is cashback, and we took advantage of that.

We took advantage of bonuses and gifts

Christmas bonus? Loan. Birthday cash? Loan. You get the idea. The extra amounts earned or given we were able to put in helped speed up the process of knocking the loans out. 

We celebrated wins

You had better believe there was dancing involved when we hit milestones in our repayment journey. We pumped ourselves up and celebrated - because how dang exciting is getting closer (and actually seeing that you’re getting closer) to your goals!? Extremely.

We gave

We are fully of the opinion (and I think fact) that God takes care of us when we are faithful. We decided from the very beginning to be faithful and return a 10% tithe on everything we earned. There were so many times the numbers in our bank account didn’t make sense; it seemed like we had more than we should many times. And it still is that way. Jesus’ math doesn’t make sense sometimes, but I am grateful!

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Did you take out a student loan? How did you approach paying it off when the time came to do so?

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How We Cut Down Our Grocery Bill Without Cutting Down on Food

The grocery budget. The bane of my existence. I know I can’t be the only one who struggles with the whole grocery budget thing, so I decided to share today about how we cut down our budget without changing our diet.

A few years ago, our grocery bill was pretty much through the roof. For only two people, we were sure spending quite a bit on groceries. Naturally, the bill would be even higher in months like December (Christmas parties galore!) and July (Camping trips, anyone?). We knew we had to make a change and fast.

After we paid off the first third of our student loans back, we decided it was time to really be tight with our grocery budget and we have thus far been successful. In fact, our way of looking at our budget has simplified altogether as a result of this and managing and saving money has never been easier. I decided to focus on the grocery part of things today. Stay tuned for a budgeting post!

What Is Included in my Grocery Budget?

For us, “grocery” includes anything that we eat and any other expendables such as toiletries (shampoo, soap, etc.). Basically anything you can get at your local grocery store that is a necessary consumable for survival. So if you have kiddos and choose to buy diapers, that would fall under that category, and for a cat, food and litter would also fall under this category.

How Much is in my Grocery Budget?

For our budget, our rule of thumb is $100/month per person who lives in our house. You will probably want to consider pets as well as they have food and waste needs as well. We count our fur baby as half a person at $50/month and we never actually end up spending that much on her. This keeps things SUPER simple, because you’re only thinking about one number to stay under per week!

Being Strict About Shopping

In order to keep this realistic, it is EXTREMELY important that you only go to the grocery store once a week, or once every two weeks. Have you ever noticed that every time you go to the store you end up dropping anywhere between $30 and $50 a time? Yes. That is why you need to be strict with yourself and only go once a week.

I get it, you might run out of milk or something. So write it down, and go to the store and ONLY BUY MILK! Keep those blinders on!

Writing lists also helps you use coupons effectively if you do that to save money.

Related: How Not to go Broke From Buying Groceries

Make A Meal Plan and Shopping List

This is key if you want to stick to the once a week shopping trip. That one time a week trip needs to be guided by a strict shopping list. I get it, you forget to write things down sometimes, but try to visualize everything you will need for the week as you plan and write the grocery list down. Then, when you go to the store, stick to it! We also keep a running shopping list on our fridge. So when we run out of things like ketchup or salad dressing, we can add it to the list quickly and easily.

Related: Confessions of a Meal Planner

Shopping Our Kitchen

Every few months, we make it a point to shop our kitchen for our meal plans. This essentially means that we try to use up everything in our pantry and freezer before buying more. I know that a lot of people like to keep a fully stocked pantry, however, sometimes this leaves you prone to buying too many duplicates or forgetting what you have. We make sure that our pantry is laid out in a way that we can see everything we have when we open the door. We use clear glass containers so we can see the amounts of everything we have as well. We use up our things before adding them to the list.

By doing this, we have also been able to take better note of what items we use more than others and know what we need to write down on the list. Some items are only bought once for an experiment or special event and never needed again.

Related: Confessions of a Meal Planner Part 2

Eat A Lot of Fresh Produce

Getting in your share of veggies actually helps you keep your budget down! Targeting fruits and vegetables that are in season is really great for your budget, and your body as well! Processed food - especially the plant based kind - can be pricey!

Related: 10 Apps and Extensions We Use to Save Money

Making/Growing Our Own Staples

I’ve learned how to make a few of our staples which has cut down on our grocery bill. Bread is the one that has saved us the most so far, since my husband likes heavier bread being from Europe and all. Things like ketchup and almond milk cost about the same to make as to buy (I’ve done the math and it’s true for our area unless the ingredients are on sale).

I know a lot of people who save a lot on their grocery budget by growing their own food! We haven’t done this yet for ourselves since I have a black thumb...

Shop Sales Strategically

Buy more of your staples when they are on sale, and avoid the sales of things you don’t generally eat - unless you have it on your meal plan or know for sure you will eat it. I’ve seen the tendency of people to buy things simply because they are on sale, only to have them go to waste later!

Having Fun and Being Positive

We allow ourselves to have a few splurges a month (like a pint of our favourite vegan ice cream that costs way too much!), but the best thing to keep in mind is not that you are restricting your budget, but that you are creating a way of life that keeps you mindful of everything you spend and everything you eat! It’s a good thing-trust me.

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Controlling your grocery spending can be hard to do, but I believe in you! Reduce your spending and increase your savings! It will be worth it.

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How to Host on a Budget

After publishing my mini hospitality series and this post here, I was inspired to share some more tips and ideas on the topic of hosting and hospitality. Budget is always something that I try to be mindful of because if I’m not, money starts disappearing. Well, not really, but you get what I’m trying to say.

I am passionate about the topic of hospitality and I so wish it was something that was practiced more! Gathering together is such an encouraging thing - even for an introvert like myself. It’s so important to cultivate the culture or fellowship, and this is one way that is often overlooked in this age of technology.

Today, I want to share some more practical tips about hosting others, but this time on the topic of finances. Is it possible to have guests over and stay within your budget? Absolutely!

Choose simple meals you are familiar with

When you’re hosting someone intentionally, what food you serve is not as important as how you serve and encourage hearts. Choose a simple, healthy meal that will not leave anyone feeling too heavy. Also, choose a meal you are comfortable cooking - nights you are hosting are not the nights you should experiment with a new dish. You might end up tossing it and going back to something easy anyway, so save your pennies on a simple meal! Some of my favourites are:

Roasted Garlic Pasta, Green Beans, Bread, and a Salad!

Fruit for dessert with some easy cookies or homemade ice cream

Meal plan accordingly

There is no need to go overboard with the amount of food you serve. Plan accordingly for your amount of guests (and you!).

Set a Budget and Shop smart

Without setting a budget, there will be no boundaries to the amount you spend. That being said, there is no reason to go overboard or over your budget when picking up groceries. Check for coupons, and don’t go shopping when you’re hungry! Also, check your pantry before you leave!

Related: How Not to Go Broke From Buying Groceries

Pick flowers from your own garden

While not necessary, flowers are nice to have to create a welcoming environment. Depending on the season, rather than buying flowers, clip some from your own garden (or sit outside and enjoy the garden!). You don’t have to buy expensive blooms to have them appreciated.

Use cloth napkins

We always host with cloth napkins because we don’t buy paper ones in an effort to reduce our waste production. But the cloth version helps with the budget too! They don’t cost much extra to wash because we just throw them in with the rest of the kitchen linens anyway, and they can be used over and over again! It’s a great plus that they’re pretty! Just make sure they’re nice and clean before giving them to a guest.

Consider a potluck if appropriate

If there is no way you can accommodate everyone, or there is an extremely large group coming, consider asking for help! Make it a potluck so no one feels awkward - where everyone brings their favourite side or dish. You can even assign items so you have more control over the menu. It’s always fun to sample different dishes, and most people don’t mind bringing something to share!

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How do you host on a budget? Any tips?

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Eating Cleaner on a Budget

One of the things I hear most from people when we talk about eating clean or healthy is, “but I can’t afford to eat healthily!”

I honestly used to think the same way, but now I know that everything is doable on a budget - you just have to prioritize and do a little research! Below are a few of my favourite ways to eat clean on a budget. 

Use Your Freezer

There are so many great foods that freeze so well! When I stock up on our favourite staples, I always consider how well it keeps. Since there are only two of us, our freezer gets a lot of use. Some favourites to stock in there are spinach, kale, tofu, beans, nuts(!), and tomatoes.

Plan Ahead

Make a meal plan to most effectively use your groceries.

Eat less meat/Be a vegetarian

We choose to not eat any meat at all and it has cut down on our grocery bill. Yes, while there are meat substitutes out there that are wildly expensive, we choose to greatly limit these as well and opt for making it from scratch or only having it once in a blue moon (a.k.a. When there is a crazy sale). Most meat substitutes found in stores are highly processed and full of sodium anyway, and aren’t the best for you!

Consider a Homemade Pantry

Pancake mixes, cake mixes, canned beans….all of these things and more you can do yourself! It’s actually simple, takes the same amount of time as it would to go to the store and buy them, and is much better for both your wallet and your body! One cookbook I use that helps me greatly is The Homemade Vegan Pantry. I love all of the ideas in it and adapt them for my own use.

Save Your Scraps 

Don’t waste those onion skins and celery and carrot ends! Collect them and store them in your freezer and make a simple vegetable broth (that can also be frozen, by the way!). That saves on having to buy veggie stock.

Reusable Water Bottles

If drinking more water is in your cleaner eating plan, skip buying the bottled water and the extra sugar and calories from bottled juices and invest in a good quality reusable water bottle. Pay next to nothing and stay hydrated - it’s a no-brainer and a win-win.

Shop in Season and Locally

Start paying attention to what is in season for cheaper produce. Shopping locally will not only give you a great deal but also help your local farms and community! Your freezer comes in handy for this as well - so much produce, depending on what you want to do with it later - can be frozen until you're ready for it. That way, it doesn't go to waste.

Skip Organic Produce in Some Cases

If you've ever heard of the dirty dozen then you'll know that there are some foods that you can skip in the organic section, and some you probably shouldn't. Your decision!

Try Store Brands

So many grocery stores offer high-quality organic food for less [enter applause]! 

Don't Forget Apps!

Using apps to save me money has really paid off over the last few years - no pun intended! One of my favourite rebate apps for grocery shopping is Ibotta and I love it! By the way: Use my referral link to download Ibotta and get a $10 welcome bonus!

Eating clean doesn't have to make you go broke by any means! With a little extra effort, you can make your dollars stretch!

“Eating clean on a budget is easier than you thought!”

TWEET IT!!

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How do you eat clean on a budget?

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