The Importance of Fun Money in Financial Sustainability

We all know that I talk a lot about sustainability, harboring borderline ad nauseam (debatable). Most oft, it refers to an environmental topic, but once in a blue moon, it will refer to something finance related. This is because tackling a student loan of $550K+ has taught me a thing or two about how to set yourself up for success with paying down debt, one of which is that the looming debt seems to most an insurmountable task that very easily deters a person from pursuing a tackling of said giant. And if you were as crazed as I about financial freedom and you did pursue freedom from debt, I would postulate bet my money on the fact that we are looking at a journey long-term. In other words, opportunities abound for insecurities to start kicking in, and there are many forks in the road that either lead you back to where you started from (in our case, on a 25 year loan forgiveness plan) or to a dead end. So we must talk sustainability if we are to expect a level of success. More importantly, we must talk sustainability if we are ever going to c r u s h this game (which we are!)

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Finding Financial Sustainability

Saving every dollar towards achieving a goal can be a grueling task. Most inquiries from outsiders center around how we survive the suffering. Surely, we must be starving ourselves of LIFE in an effort to be free?

ABSOLUTELY NOT.

Firstly, if you think that’s the case, then you don’t know us at all. I think both of us are averse towards doing anything we don’t feel is right. Read also as anything we don’t want to do. And while that seems bratty at best, it’s actually the perfect recipe towards a happy life.

Secondly, I agree. Anyone who is bogged down by the stresses of meeting payment requirements may have difficulty enjoying “the finer things”, but who gets to define “the finer things”? Only you. So while society spends their hard-earned bucks on Rolexes and Teslas, your idea of a finer thing could be a cup of coffee, a morning of solace, a day outdoors, yeah?

And lastly, even when it comes to purchasing stuff, we have the ability to, but with mindfulness. We don’t have a tendency to purchase things right when we see them anyway, and scoff at that on-demand-pull that gets most people to do some regretful spending. What we do have is a category in our budgeting tool (this link will take you to my course on how to set up your own budgeting tool). We have to thank our CFP (who is no longer doing CFP work but who have been invaluable in sending us on our way to a healthy, financially fit life – see The Value of Having a CFP) for teaching us about the importance of having a category for spending on OURSELVES.

Yes! I am talking about a category dedicated towards FUN money.

Sustainability comes from a variety of inspirations and motivations. Just when the going gets rough, one can find the push they need in a community, in the re-evaluation of perspective, in a reminder of the reason WHY we started in the first place. Sustainability can also be found in a bribe – a reward persay … but a calculated reward. This is what fun money is.

How to Set Aside Fun Money

Fun money is literally a category in our budgeting tool. It sits under the “Wants” grouping, and gets allocated a monthly amount. Nothing large by any means. We are talking $50 a month. If we want something more than $50, then we have to save for a few months.

We have our own separate categories for fun money, and we can spend our fun money however we want. Fun money is spent towards things we want but we both don’t benefit from. So, for example, if I want to buy a book about bread, then that will come out of my fun money fund. Or if he wants to buy a video game to play with his guy friends, then that will come out of his fun money account.

There isn’t anything extravagant about the fun money bucket. Because the amount is so small per month (less than 1% of our entire income), there is no guilt associated with it. Because we each have our own category, there is no blame when one spends their fun money. And because we already planned for the spending ahead of time, there is no buyer’s remorse. In fact, the opposite is true. It starts the habit of serious consideration prior to purchasing, because you realize how long it took to build up your fun money fund, and makes you assess whether there are better methods of spending. In fact, I think fun money is a great way to teach kids about appropriate spending habits, especially if the percentage set aside towards fun money is small compared to what they actually receive from birthdays, holidays, and rewarded chore duties.

How Fun Money Helps With Sustainability

So you can buy a few items. Whoop-dee-doo. How does that help with paying down a massive student debt?!

The psychology of working essentially for free and putting all your hard-earned dollars towards a debt that allowed you to work in the first place is difficult to describe. The taxation on the mind, as well as the emotional roller coaster that one experiences, cannot be stressed. Some days, you wonder what it is exactly that you’ve done. You start to question whether it was all worth it. Eventually, you’ll come around. But the hoops you have to go through to continue on this journey … it’s comical how emo the whole thing is. Like I said, the insecurities roll in like a fog. You don’t realize their coming, but they sneak up on you. It is during these times that you may need a little boost of confidence. Moral support does the trick, but there are days when I feel like no one else TRULY understands. Because how could they? We all travel different paths, and no two are exactly alike. An activity helps as well, but only momentarily, as it steals the mind and takes it elsewhere. The insecurity doesn’t fade, however, and soon you are left where you started. Unless the activity spans a long period of time, all you can do is wait.

However, the human mind responds very well to a reward system. In fact, it responds so well, that many people are obsessed with rewarding themselves, so much so that they suffer from excess consumption. No need to go down that rabbit hole now (AGAIN). Reward systems are involved in positive reinforcement, or in bribing people to do what one wants them to do. So really, I guess I’m bribing myself. Or at least, I am psychologically tricking the mind into resetting to a more positive thinking space.

The human mind doesn’t respond to starvation. Nothing lives after that. But the reward system, the mind understands. Fun money allows me to give myself calculated rewards. Things that I have already budgeted for, the purchasing of which is controlled. I don’t need much, as we already know, but occasionally, I need a push. I need breathing room. I need a break. And then, I can keep going.

Fun money makes this work sustainable. Less scary, somehow. More manageable. It makes me less of an anomaly, and more human. Hopefully, it makes me more relatable, and shows people that this isn’t me performing some heroic. It’s something that’s achievable for others too. I hope it gets them to start on their own journeys, knowing that sustainability is possible, and that fun money doesn’t make you less dedicated, nor does it make you less successful. If anything, I will dare to say that it’ll feed your fire, and make you succeed where others only dare dream.

Pictured: My most recent purchase, supporting Two Days Off, an ethical clothing line by Gina Stovall based in Los Angeles, CA.

Finance: The Second Year of Paying Down $550,000 in Student Loans, An Update

I can’t believe how fast time flies! The second year of paying down my student debt has passed, and I didn’t even notice. After the first year, I posted an update that outlined a review of our journey. It seemed to help some, so I decided to do the same for the second year. This year there were some ups and downs (a lot more downs than we thought would happen), but I am so pleased to announce that we are on track to finish paying off our debt in under 10 years. In fact, if we continue on this same trajectory that we’ve been on, we are actually estimated to finish 6.9 years from now, for a total of 8.9 years!! And I have high hopes to bring that number even lower. Read on to find out how we got here, and where we plan to go.

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To recap, we started off our journey with $574,034.50 of student debt (including the interest that had accrued)! All of which was mine. To date, we have paid a total of $145,128.48 towards my student debt over the last two years, bringing the principal amount down to $481,368.06.

To understand the progress, do recall that after year one, only $28,000 went towards paying down the principle. The rest of the $84,000 that we had paid towards the loan went towards the interest only. This means that only 33% went towards paying down the principle amount of the loan.

In year two, you start to see improvement. Of the $61,000 we paid to the loans, $29,000 went towards paying down the principle. That’s 47.5% of our payments going towards actually making the loan smaller!

Off course, you will see right away that we paid way less towards the loans in year two ($61,000) versus year one ($84,000). If we had paid the same amount or higher, we would have had an even higher percentage going towards the principle balance. So I guess this is a great time to recap what slowed us down this year.

THE SET-BACKS

  • In September of 2018, we decided to buy property. Property ownership was something we felt was right for us to do. We bought a live/work space that we hope to utilize in the future for some sort of business. Meanwhile, we are co-housing, or as financial independents might say, house-hacking, our way towards paying down the mortgage. Buying the property did entail two things to happen: We used some of our emergency fund to place a down payment on the home. Because of that, we are now re-building the emergency fund back up to what it was, which decreased our ability to pay back loans. Currently, we are setting aside $1k a month to rebuild the emergency fund and are on track to being back to normal in March of 2020. Also, it raised our total payments towards our housing a teeny bit, since now we pay for things like HOA fees and home insurance.
  • In October of 2018, we were delivered some shocking news. Mr. Debtist’s company experienced a laying off of 80% of the people working there, and even though Mike was one of the “lucky” few to stay, his pay got decreased by more than 50%! It was something we were not really prepared for, so on top of wanting to re-build the emergency fund, we also had to deal with a huge blow to our income. Since we were living off of one income, the change in salary really affected our ability to pay down the loans. But we made it work! That’s part of the joys of being on Loan Forgiveness Program even though we were paying it back aggressively. They still only required the minimum payments. Off course, we continued to pay more than the minimum. We were able to keep up with the interest that accrued and to slowly bring the loans down.

THE POSITIVES

Now that those two negatives are laid out, here are some positive things that happened!

  • A conversation with Travis from Student Loan Planner (affiliate link) is saving us THOUSANDS of dollars. He brought to our attention that we could optimize the loan repayment by switching from IBR to REPAYE. How does this help? Under REPAYE, the government subsidizes the interest at 100% for the first three years for an subsidized loan, and at 50% for unsubsidized loans and subsidized loans that have been present for longer than three years. Which means every month, we are given a free $850 to go towards our loans and help us out! This is fantastic because now that Mr. Debtist has a new job and we are back to our previous income, we also are getting help to pay back the debt. Whereas last year we were paying $6,500 per month towards the loans, we are now sending $7,300 towards the debt with the help of REPAYE’s stipend. And while we were dealing with the smaller income stream for four months, we were still getting that helpful $850 to add to the few thousands that we were contributing to the loan. If you want some loan advice, I really think Travis is your guy, and you can schedule a call with him to discuss your particular situation.
  • Additionally, the side hustle game has been ramping up since 2019 started! Now that we have our budgeting in order, it was time to start increasing our income. I was already writing on this blog and doing some dog-sitting on Rover, but I just recently started as a bread baker, and soon thereafter opened my own bakery called Aero Bakery. In January, I made only $14 in side-hustles, which made sense since we were off traveling in Australia and New Zealand for the first half of January. In February, I made $450, and in March, I made $750. For April, I am on track to make an extra $1,500 in side hustles! Read more about why I am an advocate of side hustles, here.

Why the Future Is Bright

So now, we are not only back on track with making $6,500 payments, but we are actually on track to be finished one year early! How did we do that? By being AGGRESSIVE. The minimum payment for a 10 year repayment plan was $6,063 a month. We set our sights on $6,500 a month. Even with the lapse during those few difficult months while Mr. Debtist struggled with his work situation, we were still able to be at a point where we have only 6.9 years to go! How exciting is that?! And what’s even more exciting is that I predict this will all snowball even more! I turn 30 years old this year, and wouldn’t it be great if this would all be cleared by the time I turn 35? That’s right! I have my sights set on getting rid of this in 5 more years. Here’s what we have planned.

  • Since we are now switched to REPAYE, we are making $7,300 contributions towards the loans, instead of the $6,500 that we were previously doing under IBR. That will vastly improve the trajectory of our path.
  • In March of 2020, we predict to have saved enough for our emergency fund, leaving an extra $1k to be funneled into the loans. That would increase our contributions next year to $8,300/month.
  • Also in Spring of 2020, Mr. Debtist is scheduled to finish his car loan payments. While I was in dental school, Mr. Debtist got a car loan and we currently pay $585 towards it every month. Freeing up $585 will increase our loan contribution to $8,885/month.
  • The side-hustling is just getting started. I hope to continue with many of these hobby-turned-hustles, and we will see how that impacts our payments.
  • Lastly, we decided not to refinance our loan at this time because of the risk of not being able to meet the minimum payments in case we have another fiasco like the job situation. However, when the loan is small enough (say under $300,000), we may still consider refinancing the loan. It’ll be less of a risk at that point, since the monthly payments will be way more doable. If we DO refinance as we get closer towards paying the loans off, then we will be able to attack the loans at an exponentially improving clip.

Please note that we are paying back student loans aggressively, but we are also doing it responsibly. We are living within our means, investing in our 401ks respectively, and are diversifying by entering real estate last year. I make myself less susceptible to fluctuating job conditions by having my own dental S corporation, opening my own bakery, working as a dog-sitter, working as a baker for another company, and doing some writing on the side. We are also a dual-income household, which greatly affects the possibility of this success.

If you are feeling lost in your student loan repayment journey, or you simply want to know your options, I would start with talking to a consultant at Student Loan Planner. This path is not for everyone, but it also may be more doable than they want us to believe. For those who just want to get budgeting down, why not start with my free course on creating a budgeting tool?

Finance: Taking It Slow

Yesterday, I was asked by a colleague for some financial advice. The conversation began with a request for a referral to our financial advisor, whom we actually no longer have. While the perks of having a CFP are many, our particular one had decided to pursue other professional endeavors earlier this year and Mike and I had decided to go without. For my colleague, I listed off a number of references that I have found most helpful to our financial journey, including Travis Hornsby (affiliate link) who saved us thousands of dollars in student loan debt, but my colleague wasn’t interested in student loan advice at this time. He was interested in honing in on his budget. In which case, I thought I would help.

His concern is one I often hear: “My fixed expenses are way too high. There is no way I can make ends meet with my income and my expense.” We then did a deep dive into some of his monthly expenses, and it appears that the most expensive recurring payments entail a car payment for a brand new Tesla, an apartment in a complex that offers all the amenities situated in a very popular city in Orange County, CA, and insurance payments. “Surely, none of those we can change.”

Somewhere in the distance, a buzzer goes off.

Maybe not right away. You can’t up and move apartments tomorrow, sure, but these are actually things we can change, if we wished. I suggested he sell their brand new Tesla, get rid of the monthly payment, and buy an old, used vehicle for a couple grand. I suggested he move away from large complexes where they charge up the wazoo for the gym and pool access, and instead opt for a co-housing situation, or at least a cheaper apartment. I also inquired about the possibility of geo-arbitrage. I suggested researching insurances further, to see if there are any options that will save them some money.

And then I saw it. The slight shake of the head, the glazing of the eyes as his focus started to turn somewhere internal. I knew I was losing him.


Talking about finances can be difficult. Hearing the steps you need to take in order to get from point A to point B can be quite daunting. It can make any person shy away, make them believe that frugality is for superheroes, that financial freedom is not in the cards.

I guess I should start with the following: It’s going to be slow. It requires a mindset shift, after all. A lifestyle needs to be upturned, and that is never an easy thing to do. To bridge the gap between the impossible and something more attainable, start with a conversation.

For example, right now, it may seem impossible to just get up in the middle of the night and move to a cheaper place. Plus, the decision to unroof an entire family isn’t up to you. Everyone gets a say, too. But speak up about the possibility. Look ahead to when the lease ends, what options lie ahead. Brainstorm, to get your brain on the same wavelength.

Then, start with one change. Maybe it will take a few months to find a used car to replace the current one. Focus on what you can do now. If you aren’t ready to trade your car back in, then call insurances. That let’s you tackle one thing. You probably won’t switch to a new one this week, but you’ll get a few quotes to pocket for next.

For some, even this may be a bit too much. Big things can be intimidating. Calling insurances requires a lot of research, and right now, there isn’t the time. If this is the case, then let’s drop the big things all together, for now. Refocus, and start small.


So we backtracked. He initiated a new tactic, and I followed suit, not pushing the bigger budget cuts. For now, that leap may have been too great.

He asked about grocery budgets. He shared a number around $800 for a family of four, which isn’t the worst. I’ve heard of more. I shared our goal of $300 for two adults, which also not the most frugal. Then he asked me about dining out. I shared that we have a target of $100 for the both of us per month. His eyes grew wide.

“Where do you eat, In N Out?!?!”

Yeah, sometimes.

He said $100 could not even cover a night of sushi.

And he would be right.

His family spends closer to $800-900 a month in dining out. There. A place where we can work. Further discussion reveals that they dine out 3-4 times a week, versus Mike and I’s once a week. Changing dining out habits, even by simply limiting them, is a much more doable thing than relocating an entire family to a cheaper state. Here, we can begin. And slowly we work our way up.


How about shopping?”, he asked.

I don’t shop.

“You need to talk to my wife.”

I think she would hate me.

Because here’s another thing. Going up to a significant other who enjoys shopping and telling them that they have to not shop the entire year can be perceived as quite near impossible, let alone unsustainable. If any success is to lie ahead in your future, we need a tactic that helps others slowly transition. Perhaps, we cut back on spending this month. Then, we cut back on the number of items next month. Afterwards, we may narrow it down to one. Lastly, we tackle the time. No shopping for “x” number of months. The turtle wins the race.


I think what people need to hear most is how slow the process actually is. There’s no way around it. It won’t be tomorrow that you suddenly quit every pull you feel towards spending. You can’t drop all the bad habits in one go. You’ll make mistakes and buy that dress. You’ll start looking at cars you wish you had. We both did. You’ll want to kick yourself for the slip ups. You’ll feel hopeless when you take a step backwards. You’ll be embarrassed when people hear. But don’t give up then, because that’s the point where your mindset shifts. Even if you can’t see it.

Personal Finance First Step: Mastering the Budget

If you are embarking on a personal finance journey, then let’s get you started on the right footing. Step one begins with mastering a budget. Some may scoff at me and say that I know nothing about becoming rich and getting to financial freedom. They laugh and say that I must not realize that reaching financial freedom lies in increasing income, rather than decreasing spending. But I know something that they don’t know.

You can increase your income, and never be financially free. It’s just a quick fix attempt, and usually, quick fixes do not work. In order to really tackle your personal finance, you need to start with the basics. You can’t just jump ahead to making a ton of money, because without mastering a budget, you’ll likely never see that extra money you make. If you’re like most Americans, you’ll spend it before it even gets to your bank account.

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Now I’m not naive enough to believe that mastering your budget is all it takes. I agree that there are limitations to mastering a budget. One can only cut their spending so much. On the flip side, one can increase their income exponentially…indefinitely, perhaps.

I, myself, am well aware of the need to increase income. I worked three jobs while going to undergrad to increase my income, but I also graduated in three years in order to cut spending. I was one of the few students who worked during dental school, just to make a little extra money. And even now, am a side-hustler of sorts. I work in dentistry, write on my own blog, write for other blogs, walk dogs via Rover, work the midnight shifts as a bread baker with Rye Goods, and bake my own bread to sell (currently I am applying for a license to open my own “bakery”). But before all of this, I mastered my budget.

Here’s the thing. I know many people who are high income earners. I define high income earners as people who make six digit incomes or more. Most of them are also swimming in debt. This debt includes car loans, mortgage loans, student loans, and even consumer debt. Unfortunately, lifestyle creep is real, and unless you’re well-versed in staving off advertisements who are convincing you to spend more as you earn more, you will likely be one of the top targets (and victims) of lifestyle inflation.

There’s a statistic swimming around that 80% of Americans do not have $2,000 set aside in an emergency fund. Eighty percent! The part that gets me is the fact that $2,000 won’t even cover most true emergencies. Medical bills are way more than $2,000. If something happens to your home, or someone loses a job, $2,000 won’t last most people one month in Southern California. While it’s hard to confirm the statistic, for they do have a tendency to appear out of nowhere and start floating around, I can confirm that many patients that I meet don’t have the income to jump into an emergency dental procedure right away. Yet many of them are working their tails off (I can’t tell you how many nightguards I’ve diagnosed to help with stressful grinding habits), and earning decent pay, and still, they have to “save up” to treat a tooth in pain. And trust me, you wouldn’t put off treating a tooth that really hurts, unless you absolutely have to. It’s a feeling one never forgets.

People are working longer hours and making more money, but are saving less and less. We’ve been raised to be consumers. It’s not an anti-consumerist society, I can tell you that. But we haven’t been taught how to be SMART consumers. I was never taught how to ration out my earnings. I was never taught to pay myself first. I was told that good credit is GOOD. Wrong. Good credit is bad, and bad credit is worse. People without credit history probably are the best with handling their money. (This does not mean they are the richest. Just that they are really good at handling money).

All of this to say, you can try to get rich by working your butt off. You can spend all the hours of your day for forty years of your life trying to make enough money, and then some. But you can’t be successful if you don’t know how to manage it. You can try to take the short cut, the quick way to success. But that’s what most Americans are doing, and eighty percent of them don’t have $2,000 set aside for emergencies.

If you were to take my advice, I’d say start mastering your budget. If that’s something you’ve wanted to do in 2019 but haven’t had the chance, check out my free course How to Create a Budgeting Tool, and get started today!

Finances: How Marriage Can Affect Student Loan Repayment

A few months ago, I had a friend and colleague call me and ask me the following question: “What happens to my student loans if I choose to get married?” In the same breath, she went on to explain that she had been delaying her marriage for months because she was fearful of how that would affect her finances.

I can’t imagine how difficult it must have been for her, feeling like she had to choose between marrying the man who she describes as her “number one supporter and best friend”, or her student debt. The concern was that she and he both had student debt, and they were both currently under the loan forgiveness program. Which meant that separately, they were both paying a percentage of their income towards the loans. She feared that getting married meant combining their incomes which would create a higher total income number and which therefore would require them to make an even higher monthly payment on BOTH of their student loans. So here I am, walking through some of the basic info, just like I did with her on that far away phone call. I hate seeing student loans get in the way of, well, l i f e , and I want to say to all of you the same advice I said to her. Life is too short, for numbers to be the only factor. I hope this helps.

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We all know that we bring into our marriages our past experiences, the perceptions shaped by those events, and other baggage (suitcases of?) that we may be carrying. Student loans is more commonly becoming one of those suitcases, or if you’re like me, loads of suitcases. As student debt numbers continue on the rise, it seems to become a bigger deciding factor than ever before.


The fact that student loans are preventing people from getting married seems ridiculous, but it’s a fact that exists none-the-less. My friend was not the first to delay getting married because of student debt concerns. In fact, I frequently get calls regarding student loans after a recent marriage. I have people all of a sudden interested in a CFP after tying the knot, because now, their professional pursuits are affecting other people they care about. More than that, it’s affecting their futures. I’ve spoken openly about how my own marriage is what motivated me to get rid of debt. In addition to marriage, I have had people confess that it’s prevented them from pursuing passions, changing career paths, buying a home, and also, starting a family. But it shouldn’t.

Here’s how marriage affects those under the student loan forgiveness plan.

Will my student debt affect my spouse?

Technically, your student debt will only be tied to your name. Even if you get married, your spouse will not be responsible for paying off your debt. An exception to this rule is if you decide to refinance your loan and have your spouse co-sign. Co-signing puts your spouse on the hook for your loans. I would not recommend refinancing if it requires having someone else sign their name. I wouldn’t want to burden even my worst enemy with this debt. If you refrain from doing this, then the student debt will stay with whoever originally took out the loan, and that’s it.

But it does not mean it won’t affect the other individual. Take my case for example. I have a student debt payment of $6,500 a month for almost ten years. That means that every month, that’s $6,500 less than what my spouse or I can use to live our life. It’s that much less that we can put towards paying down our mortgage, or setting aside to travel. Or, if my spouse hypothetically had loans of his own, then it would be $6,500 less that we can contribute to his debt.

So the short answer is yes. It does affect your spouse and family in the grand scheme of things. Which was my number one motivator to get rid of the debt faster than they can be forgiven.

If both individuals have student debt, should the student loans be consolidated?

They say that when you become married, you become one. Everything gets joined together, finances included. Most married couples decide to combine bank accounts to simplify life. “It’s all half-and-half now anyway.” So some ask, shall we also consolidate student debt.

I would put the brakes on this one. While there are some pros, it could also be harmful too. Let’s consider both sides of the coin.

A positive of loan consolidation occurs when one spouse has a significantly higher credit score than the other. Since interest rates are determined by credit score, the individual with a really low credit score might benefit from consolidation.

Merging debts can also be beneficial in terms of simplicity. When loans are consolidated, you no longer have to worry about your tax filing status when tax season rolls around. Additionally, you would reap similar benefits as if you refinanced your loan. These include lowering your interest rate, lowering your monthly payments, adjusting your length of repayment term, and therefore decreasing your total number of monthly payments. Lastly, it will get rid of having to juggle multiple loan servicers at the same time.

Out of all this, I think the most beneficial aspect (for me anyway) is the psychology of combining student debt. When things remain separate, it sometimes happens that one person will hold a grudge against the person with the higher debt. This can either be a silent sentiment, or one that gets voiced more and more frequently as the time passes. Consolidating loans at the get-go is a symbol of both individuals wanting to work together to get rid of the debt. Regardless of how much there is to pay back, both are putting their hard earned pay towards the loans once they are consolidated, and the adversity can unite rather than divide.

That being said, I would be wary of loan consolidation, especially for those under the Public Loan Forgiveness program and the 25 or 30-year Loan Forgiveness Program. First and foremost, loan consolidation of any kind usually resets the clock for the loan. This affects those in PLF because their 10-year service to a company may be reset as well. I have talked to nurses who have been unfortunate enough to consolidate their loans after working at a hospital under PLF for multiple years. By doing so, their previous years’ contributions to the hospital did not count towards PLF, and after loan consolidation, they have to contribute another 10 years in order to qualify for forgiveness!

Additionally, most lenders who will consolidate multiple student loans are private lenders. By consolidating with a private lender, you will lose the ability to qualify (ever-again) with a 25 or 30 year loan forgiveness program! This is all fine and dandy if the private lender gives you a lower interest rate that would allow you guys to keep up with the payments. But take my case, for example. We heavily considered refinancing my student debt, and I drawled on about our wishes to do so in this post. In the end, we did not pull through with refinancing, firstly because they required Mike to co-sign (see above) and secondly, because it would forever prevent us from falling back on loan forgiveness. That would mean that even with a lower interest rate, it would require us to pay $5,500 a month every month for 8 years. Currently, 100% of my dental income goes towards paying down the debt. If something were to happen to me, say I broke my wrist while baking, that would prevent me from working, and we would be screwed! By not refinancing with a public loan lender, my monthly payments are only a small percentage of my income, and we can manage that payment in case temporary (or permanent) disability occurs (applicable also to natural disasters, personal conflicts, and job insecurity).

In the end, we chose flexibility and peace of mind over money. I think that consolidation would be more beneficial as the student loan amount decreases and the pay increases. You have to just run numbers with your own personal situation to see what the risk is, and if it’s worth the cost.

If both individuals are on the student loan forgiveness program, how can they keep their monthly payments to a minimum?

Sometimes, when people choose to get married, both individuals have student debt under their names. If they are both under the student loan forgiveness plan, then they are currently paying a small percentage of their reported income based off of the previous tax year. The concern most people have is that when you get married, the student loan forgiveness plan may or may not consider your total household income. For example, currently, you may be paying 10% of $10,000 (just to make the numbers easy) per month. That’s $1,000 a month towards student debt. And your husband may be paying 10% of $10,000 a month as well. But when you get married, now your household income is $20,000 a month. Will you both be responsible for $2,000 contributions to each of your loans?

Not exactly.

First off, if you both are in this situation, you should probably consider filing separately. If your monthly payments are dependent on your income, then filing separately will help lower the total monthly payment, because it will be based on only one person’s income. Remember that under the student loan forgiveness program, you want to pay AS LITTLE AS POSSIBLE, and you want the government to forgive as much as possible.

The Caveat: Not Every Married Couple Should File Married-Filing-Separately

I follow up that last paragraph with this caveat. Not all married couples on the loan forgiveness program should file taxes separately. Here’s the thing. You may get a lower monthly student loan payment by lowering your total income. However, choosing to file taxes separately will likely lead to higher taxes. So even though you are paying less towards your student loans, you may find that your monthly savings will not be worth the extra amount you have to dish out come tax season.

The only way to really know which situation is best for you is to run the numbers. You need to compare the savings you get from having a lower income to base your student loan monthly payments with the additional taxes you would pay by filing separately. Unless you are a tax whiz, this is the part where I refer you to an accountant. Or talk it through with my pal Travis at Student Loan Planner. As you can tell from our conversation at this Itunes Podcast recording, I may know a little bit about student loan repayment, but Travis is the guru. Even he pointed out ways to optimize my own plan, which we used to save thousands of dollars.

There is one situation where your tax filing status does not matter as much. This is the situation Mike and I fell under. My loan is under the loan forgiveness program but we decided to file our taxes jointly. The reason is that although we are under the loan forgiveness program, we are trying to still pay my debt down aggressively and as quickly as possible. We stayed under the loan forgiveness program in case of a financial crisis or emergency… essentially, for peace of mind. However, we have all plans to pay it down like a standard loan payment. By filing jointly, we reap the tax savings of being married. Even though our total household income is greater and our minimum monthly payments are larger, our total monthly payments are aggressive and far exceed our minimum monthly payments anyways, so our total household income becomes null. Which is the perfect example to show that every choice behind what to do with the loans is entirely situational. It requires a good grasp on your financial abilities and your personal goals, while considering the best path for your psychological well-being. For, let’s face it, a lot of the motivation comes from the mind, and any long-term progress will highly depend on how “right” everything feels to you.

The moral of the story is this: Instead of fearing marriage as being an impediment to your financial journey, or vice versa, use them as tools to fuel each other. My marriage is what inspired me to be extremely aggressive in my student loan repayment. In much the same way, my student loans have ironically strengthened our relationship. For the first year, we sweated, cried, and rejoiced over battles and victories regarding debt. We’ve learned to work together as a team, stretched our creative boundaries, and really stood our ground, hand-in-hand, against nay-sayers, financial instabilities at work, and plain old exhaustion. We hit walls that we never thought we could surpass, only to climb over mountains. I think everyone can do the same, too. And if you need someone to simply talk to, to rant or cry, know that I am here. And so are all the other people who have reached out to me. We are all going through a similar journey, but I want us all to feel empowered, not struck down by the weight. I want to a be collective, rather than lonely individuals. I want you to succeed, not in being rich, but in your pursuit for a happy life.


Why You Need A Budget

I always tell people how having a budget helped turn our life around. For some people, just the mention of the “B” word makes them cringe. There are many negative implications attached to budgeting, but I am here to tell you that they are not true. Many people believe having a budget is limiting, as if it will tell you what you can and can’t do. I completely disagree. I think having a budget is freeing, because it allows you to finally tell your money where to go. When you have a budget that works, you will have your money working for you, instead of the other way around.

You will never know how you are doing financially without measuring it in a factual manner. Likewise, you cannot improve if you don’t know what you need to improve upon. Numbers don’t lie, and your budget will be the best reflection of how well you do with controlling your spending. The first question I ask people who tell me they have difficulty saving money is, “how much are you spending each month on _____?” If they can’t give me a definitive number, then therein lies their problem. I liken it to people who say they can’t lose weight. If they don’t know how many calories their taking in and how many calories they’re burning per day, then how do they expect to have any grasp on the things they can improve on in order to see results. A budget is necessary in order to track progress. People will usually try to ball park their spending, but it never works. Why? Because we always underestimate how much we spend. It’s human nature. It’s difficult to understand what’s keeping us from financial freedom if we do not know what we are doing with our money.

Budgeting will teach you more about yourself, what you value, and what you want in your life.

There are many reasons why you may want to master your budget. Here are some ideas.

  • To free up your time. You may feel as if work is taking up all of your time. You may want to cut down on work or change jobs completely but you can’t do so because there are bills that need to be paid. A lifestyle needs to be supported. Getting your budget in order may be just want you need to decrease your spending, thus allowing you to take that part-time job or cutting down on your work hours. Some people even want to become so financially savvy that they can pursue complete financial independence and retire early!
  • To relieve stress. Having a shortage of money can be very stressful. However, if you budget correctly, you should never run into that situation. Mastering your budget gives you more flexibility and allows you to be better positioned to deal with unexpected expenses.
  • To have more freedom. The more financially secure you feel, the more freedom you will have when making life decisions such as changing jobs, quitting work, traveling the world, starting a business, starting a family, and more. When money is tight, these things may seem very risky. But when you have a grasp on your budget, you can predict how much freedom you have in pursuing your passions. For example, if your dream is to time off and travel the world in 2020, you can definitely make that dream happen but planning ahead and using your budgeting skills to prepare yourself for that.
  • To support yourself and your loved ones better. For me, this was MY “why”. I was graduating from dental school with over half a million dollars in student debt, and was also about to get married. I knew what a burden I was choosing to bring into our marriage. He didn’t mind it, but I did. I was propelled forward with this drive to release us from this student debt, so that we can be free to pursue the lives we want to lead without being tied to working in certain fields to support large loan payments. It isn’t fair that the person I most love would be affected by debt because of the career I chose to pursue. So I embarked on a journey to get our finances in tip top shape, and we have mastered our budget so well that what people once told us would be impossible to do is being done! They said we wouldn’t be able to pay off our debt in under ten years considering the salary we would be making. Well, we are on track for eight years, and it all started with mastering our budget!

So, do you have a budget? What’s stopping you? If you want to kickstart your budget and start telling your money where to go, check out my FREE course, How to Create A Budgeting Tool That Works, and start achieving your life goals sooner. I hope it helps you with your financial journey as much as it’s helped us.

Feature: Student Loan Repayment with Student Loan Planner

This post may contain affiliate links. Please see my disclosure to learn more.

Today, my Itunes interview with Travis Hornsby was released, and it will leave you with much to mull over. Travis Hornsby is the founder of Student Loan Planner, whose goal is to help guide recent grads down the correct repayment path for their lifestyle . In this episode, he dissects my current student loan repayment plan. We discuss optimized strategies, loopholes in the system, as well as pros and cons with paying down debt aggressively or passively. I learned something new during my conversation with Travis which led me to switch my repayment plan in order to save thousands of dollars! Throughout this journey, I have found that it’s amazing that we don’t know what we don’t know. Without conversations such as these, we will never really be making the best choice available. Additionally, it secures my faith in our ability to pursue our path and reinforces the contentment that I have with our decision.

There are a few things that we touched on in the podcast that I wanted to clarify.

  • Mr. Debtist and I both have 401ks. We are not paying down the debt and ignoring retirement all together. We contribute to our 401ks every month and currently have more than $100k tucked away.
  • We bought our property but not just as a place to live. We knew before we purchased that property ownership is FOR US. Our property is very unique. It is a live work loft that has a commercially zoned business space on the first floor, and the living space on the second floor. We bought it as a means to increase our income. Even though Travis is wary of people buying at more than the 1% rule, especially in California, the conversation we had talks specifically about homes to live in. It does not take into account the money the house brings in on top of its worth. We currently make passive income off of the business space by renting out the room. If ever our roommate leaves, we have a few ideas on what to do with the space. Our hope is to eventually create a business of our own on the lower floor, thus adding to the ways in which the house makes us money.
  • As much as I would love to work pro bono in another country, I want to be rid of the loans more. I know that it seems crazy to forever pay $6,500 towards student loans every month for 8 years, but I trust that it will not be equivalent to what we are paying now forever. I believe in the snowball effect. As we alluded to in the podcast, once the loans are at a certain threshhold (less than $400k) there is the possibility of refinancing at 5.5%. Once it’s below $300k, there’s the possibility of refinancing at an even lower rate. Additionally, we hope to increase our income over time, as we are doing a number of side hustles. Lastly, as Travis tried to convince me to get on the forgiveness path, you can see that he did so to no avail. I am certain we are on the correct path for us. Once we are free of debt, we would have already been contributing to both 401ks for 8 years, paid as many years to a mortgage, established at least one consistent stream of passive income in the form of a side gig or business, and most importantly, we would know how to live off of very little. We know how to find happiness in the simple things. We would have created a life of intention. And that is worth more than anything a loan forgiveness program could give me.

This is definitely a podcast to listen to if you graduated with a large student debt. You will likely find some golden nuggets in our conversation, and if you like what you hear, then maybe scheduling a call with Travis would be the next step for you. If you have a smaller student loan amount, maybe getting rid of your debt is closer to your reach than you think. In case you were considering refinancing, below are a few refinance links, to help you get a better rate on your refinance.

Using the links above will reward you with a sign up bonus for choosing to re-finance. But before you do, please think thoroughly about whether or not you can sustain the new rates, because once you refinance, there is no going back to student repayment. Also, don’t forget to shop around and find the lender that will give you the best deal out there!

And in case you missed it, my previous podcast interview on Itunes with ChooseFI can be found here.

One Income Stream is Risky Business

There’s a recent happening at the Debtists’ residence that we have not yet spoken of. It’s one that I hope you consider heavily, and it emphasizes the risky business of relying on a single income stream. After revealing the going-on’s at our home, I sure hope it convinces you to re-think the way you look at yourself and your job, and to possibly start on this path towards adding side hustles to your resume in 2019. 


Real talk: A year and a half ago, Mr. Debtist pursued his dream job at a start up company working on electric vehicles. As with any start-up, there is risk involved, and one never quite knows if anything will come of it. Last year, we went through some difficult times with the company, and for a month or so, we didn’t know if there was any more growing left to be done. Luckily, they pulled through and at the beginning of this year, there was hope of moving forward.

Unfortunately, mid-October, we (and the rest of Mr. Debtist’s company) were blind-sighted by a turn of events that resulted in a laying off of 20% of the company, followed by a mandatory furloughing until further notice of anyone who joined in the last six months. A 50% cut on everyone’s salary was implemented, which is hardly the worst part. Last week, another wave of mandatory furloughs was issued, getting rid of all of Mr. Debtist’s friends at work, but one. All that’s left of Mr. Debtist’s team is him and two other mates. Now I am not ungrateful for the fact that he was kept on and still has a job, despite the 50% cut that he’s been working under the past two months. But it is a depressing thing, to see your company degrade, your co-workers leave, and your paycheck smaller than when you first graduated from college 8 years ago. I share this with you all to prove one thing: Having one income stream is risky business.


Sometimes, “what you do in your 9-5 is not as important as what you do in your 5-9”, my favorite quote from Side Hustle Nation’s Nick Loper. We need to stop thinking of ourselves as someone employed by a company who works in the 9-5. Rather, we need to start thinking of ourselves as entrepreneurs, who may be doing particular work from 9-5, but who are our own employers from the 5-9. Because we are our own employers, we are responsible for creating other income streams for ourselves outside of our 9-5. By doing so, we no longer remain dependent on a single job, or on an employer for that matter. Even if you own your own company and you work for yourself, you cannot assume that your single source of income will be there a year from now. You cannot assume that you’ll still be satisfied with the same work after a year. And who likes sticking to a job that they hate? We only have a limited number of days, and our lives have to reflect that. With other sources of income comes more freedom from any potentially unfavorable turn of events, and more power to call the shots as to what takes up your precious time. The minute you become an entrepreneur, you become your own person.

Even as a child, I knew deep down that I did not want to depend on anyone. In fact, I hated it when people told me what I could and couldn’t do. That’s just who I was. No one else but me gets to say how my life is going to be. I mean, should anyone else be given that right?! Here in this space, I write about ways in which we can live intentionally. Part of that requires ensuring that we are living for us. That our actions are shaped by neither our histories, nor our relationships. That we leave our own legacy behind, and not an empty shell of a life made busy with what other people thought defined our success, or worse, defined us.


For Mr. Debtist and I, we are absolutely lucky in the fact that we do not rely on one income stream. And I am not referring to the fact that we are a dual-income household. I would say that we are a hexi-income household, because we employ a number of different side-hustles to increase our income. And while we cannot necessarily replace our 9-5 jobs with the other income streams, we can stay afloat. We prove to ourselves that we can come up with something to replace it. We (hope to) inspire others to have the courage to make it work. If all of this jives with you, here are five income streams for myself that have helped offset the dramatic pay-cut. 

  • Work for 2 dental offices (and stay open-minded to help out fellow dentists in need at their offices). I work for two different dental offices in two cities about twenty five miles apart. One is three blocks from my home, the other is a five minute drive from my parents. Working for two offices gives me flexibility, but also, safety. Imagine one city suffering from a fire, or an office suffering from a sudden loss of staff. Dispersing my dependency between two offices that serves two different communities gives me a stronger sense of stability. Additionally, I have colleague dentists who occasionally message me and ask me to help out with their own private offices once in a while. If I have a day off, I am more than happy to work for them for that day, to help alleviate the work load or to give them time to take a vacation.
  • Act as landlord and rent out a room. We started this idea of co-housing in January of 2018. After having an emotional break-down over the stagnancy of our finances given the large student debt that we had to overcome (referring to myself, not the Mr. Debtist, regarding the debt AND the breakdown), we decided to co-house to alleviate some of the financial load, and more importantly, allllll of the stress. Another way of thinking of co-housing is as an additional income stream. Renting out a room in our home gives us an additional $700 a month! It’s actually the biggest thing that got us out of our stagnant stages (along with YNAB which helped us get our budget in order), and it was the best decision we ever made!  
  • Dog sit via Rover: This is a recent side hustle that I started to do and I think it has great potential. We do not have kids of our own, and while we love our toothless cat, we also enjoy the additional company of other pets, too (even though Theo may not). Dog sitting is a great side hustle because it does not add much to your plate. It is flexible in that you can create the timeline that works for your already existing schedule to feed and walk the dogs. For us, it is a great opportunity to play and love dogs who would otherwise be sitting in a kennel overnight. The dogs are welcome to sidle up by us on the couch during the day or on the bed at night. It gets us to go out on a walk three times a day, forcing us to exercise, but also giving us the opportunity to connect. With this side-hustle, I charge $30/night to dog sit, giving us the earning potential of an additional $900 per month. Via Rover, you can also choose to day sit, take dogs on a walk, check-in on someone’s pet, and more! You control your own calendar, making it easy to do without sacrificing your current obligations. For example, if you have a vacation planned, then you may block that day off from your availability. If you love pets as much as I do, then this is a great hustle to look into.
  • Use affiliate linking to generate income from the blog. This is fairly easy to do when you have an existing blog or social media platform. You can become an affiliate for a number of companies and help others by linking them to that company’s programs or services. Off course, I do not link to every company out there willy-nilly. I only choose companies that are in line with my lifestyle and my values. Most of the time, I have tried the product myself to verify that they make a good fit. For example, in an effort to help others who are attempting to wrangle their student debt, I have partnered with the following refinance companies (Laurel RoadELFICommon BondSofiSplash FinancialEarnestLendkey) to help people get lower interest rates on their loans. It’s a win-win situation, because I make financial independence, zero waste-living, and sustainable products easily accessible to my followers, and at the same time, I receive a small percentage commission from the companies I work with.
  • Take bread orders and sell bread loaves and croissants. Baking bread is like a science. If I am being honest, it took me quite a few experimental bakes before I even got to what I would consider edible bread. Eventually, I got to bread that was soft enough to digest, let alone bite into, but I still wasn’t satisfied. When I got into a bread baking habit, I wanted to improve my skills without wasting so much bread. A gal can only eat so many loaves in one sitting! So what I started to do was sell my bread to friends, family, and co-workers, which gave me the ability to practice honing in my skills without wasting resources. In return, they received fresh loaves of organic bread, without any preservatives of any kind, at a hugely discounted price. Even though I have stopped baking bread loaves every week once I developed a recipe that I was happy with, I occasionally still do get orders and requests. This isn’t to say that bread baking will replace our real 9-5 income. Rather, it’s to show you that you have hobbies and talents that people are willing to pay for. At absolutely no expense to you. Let’s say you love to read. Offer your services as an editor. Let’s say you like to cook. Sell your most popular meals to friends and family. Or better yet, start a blog and share your recipes with the world. If you like calligraphy, use the holidays or weddings as opportunities to make some income. If you own a camera, become a free-lance photographer on the side, starting with close friends and families to build a portfolio. Trust that you hold value , and share your interests and skills with others in a way only you know how.

We took over a $55,000 pay cut two months ago. But we aren’t going to quit. We will keep up the student loan payments and dig our way out of hyperdebt. We will flex those frugal muscles (a year of working out those frugal muscles has prepped us for this!). And we will not jump desperately to the next corporate job offer. We will stay afloat this crazy ocean ride. Why?? Because it is important (to us) to build a lifestyle by design. Part of that means that it is important to do meaningful work, however that’s defined by you. We knew the risk of a start-up company, but electric vehicles is what he wanted to do. He loves cars, and he believes strongly in a future of autonomous driving. Despite the unexpected turn of events, you don’t ever regret a decision like that. If you find yourself in a similar situation, I implore you to seriously think before you jump into the next job life throws your way. If it doesn’t align with your lifestyle or your values, why chain yourself up? 


We only have a limited number of days, and our lives have to reflect that (see paragraph 4).