“9 years old to 27 years old. A fat kid who refused to brush her hair to whatever it is I’m doing now.”
As for debt repayment, a college senior graduates with at least $20,000, on average, in student-loan debt. If you fall into that camp, you’ll spend $230 a month on a standard ten-year repayment schedule at 6.8 percent interest. You may need to negotiate a different time schedule with your lender, say, a 15- or 20-year repayment. Or you can ask for a graduated repayment schedule where you pay less per month now, but more toward the end of your loan period. There is also an income-contingent repayment which bases your bill on a percentage of your actual salary.
The average college senior also graduates with $3,300 in credit card debt. At 18% interest and paying $80 a month (4 percent minimum payment of initial balance), it’ll take you about 2½ years to rid yourself of that debt. And that’s assuming you don’t charge another dime
One category we’d like to see you stick with the fixed amount (or higher) is savings. This is an excellent habit to get into right from the get-go.
Start by building up your short-term emergency savings, and then branch out into investments for the long term. If a 22-year-old saves $211 every month and earns an average annual rate of 8 percent on her money, she’ll have about $951,000 saved up by the time she turns 65. If she increases her monthly contribution every time she gets a raise, sticking with the 10 percent savings rule, she’ll have well over $1 million – perhaps even
There is an exception to this rule, however. If you have high-interest debt, you’d do better to take your 10 percent savings allotment and pay.