Things I Did to Pay off My 26,000 Debt in 2 Years
By: Jerine Nicole
Tags: Money, Personal Finance, Financial Planning, Student Debt, Student Loans

1. I saved up the grant I received from the government

When I applied for a student loan from the government, I also received grants or bursaries. The student loan doesn’t cover the books, school supplies, or transportation. The Canadian government was kind enough to consider the extra costs of going to university. They basically gave us free money.

When other students used their grant to buy new phones and shopping money, I saved it. I used it to buy myself a university laptop and my school supplies. Every year, I had plenty of grant money sitting in my bank account.

By the time I graduated, I had $7000 worth of grant. I used that money to reduce the money I owed to the government.

My tip: I wish I knew about investing back then. I could’ve invested that money instead of letting it sit in my bank account from all these years.

2. I took on many part-time jobs while in school

I had a regular part-time job as a cashier at a local grocery store across the place I used to live. Every time a new part-time job opportunity came up, I took it.

I worked as an early childhood assistant in the daycare of the university where I studied. Whenever I had free time between classes, I would do 2-hour shifts here and there until I graduated. This worked amazing for my schedule.

I edited a psychologist’s reports. I got this job through my then-boyfriend (now fiancé) as English was not her first language. Guess what, neither was mine, but I did anyway. I gained new skills.

I worked as a Casper rater at a start-up at my university. The Casper test assessed the student’s personalities as part of their university application. It taught me that marks don’t tell the whole story about the person.

I worked at Abercrombie & Fitch in the mall beside my university. I only did it for two months but earned so much because I worked a lot during the holidays.

I worked as a Personal Support Worker for a week. I got fired on my second shift because I was late. I never did that again — the PSW job and being late.

My tip: Take opportunities, especially if they are convenient for you. I took on those jobs because they were either close to my place or university. Whether it’s a paid or unpaid opportunity, you are bound to learn something from it.

3. I paid myself first, every time, with no exceptions

Because I was working so much, I learned the value of my money. I was cheap about every single thing. I wouldn’t pay $5 for a Starbucks drink when a $2 Tim Hortons coffee would do.

By the end of my fourth-year, I saved up about $13,000. Every time I got my paycheck, I paid myself first. How? I put the money straight into my savings account. I didn’t know this was a tactic that many people use until I saw it online.

I only had $200 in my chequing account that I allowed myself to spend on whatever I want for the month. I wasn’t budgeting. I told myself that I only have this much money for the month. I was free to do whatever I want with it. I pretended as if my savings money were gone.

My tip: I used an excel sheet to track my money over time. When you see your progress, you become more motivated to keep going.

4. I learned (still learning) to only spend money on things that I valued

This was much harder to do by the time I was in my last year of university. In my third year of university, I travelled to the Dominican Republic to see my childhood friends. I became addicted to travelling.

Every few months, I looked forward to going somewhere new — local and international. When I travelled, I didn’t want to cheap out. I paid for the experiences that I wanted to experience.

Not only I travelled more, but I also wanted to look ‘cute’ on for the gram. So I spent a lot of money on clothes and shoes. I admit I have more clothes than I need. But I am always learning.

Travelling is something that I truly value. I could be stripped out of all the items in the world, but I’d still feel rich if I got to travel. Now, I spend less money on clothes and shoes. Instead, I spend money on travel, investing and learning new skills to be financially free.

My Tip: Spend money on things that give you joy. Yes, even if those are shoes and clothes. But make sure that it gives you joy for a long time.

5. Besides the monthly payment, I did a lump sum here and there

A timeline of my debt journey: