Your parents likely told you once or twice when you were young that money doesn’t buy happiness. Not to say they were wrong, but as we age we begin to understand the importance of peace of mind and that being caught between a rock and a hard place is a lot easier to squeeze out of if you’ve got the right funds stored away.
While money may not buy happiness, there is something to be said about the positive effects budgeting your income (and debts) affords you. Creating stability within your finances can reduce stress and create more opportunities for the funnier things in life. As adults, this financial stability can come in many forms. In particular, saving up for your first home and refinancing your student loans are pretty common, important milestones. Keeping a positive mindset and utilizing habits for success will be essential when working through these challenges.
Adjustment Is Sometimes Necessary
Considering how many graduating adults finish school with debt, refinancing your student loans is a great option that can help provide more financial stability and create more flexibility within your monthly budget. Refinancing can seem like a hassle, but the process is fairly simple and oftentimes easier than you think.
Refinancing can also provide a much-needed mental break considering the negative, stressful feelings that arise when you watch your saving get drained by those huge monthly payments. It’s also important to keep in mind that refinancing doesn’t necessarily mean you’re incapable of paying back your loans. Rather, it’s like tailoring your payments to better fit your current place in life.
There are a few things to consider before refinancing. As the experts at LendKey explain, “When making any financial decision, timing is everything, and refinancing student loans is no different. There are several factors to this – some a student can control and others they cannot – that affect when they should refinance student loans. This includes the timing of graduation, interest rates, employment, and credit score.”
Refinancing also depends on which lender your loans are through as the requirements vary company to company. Either way, it’s definitely worth investigating to see if you qualify. Adjusting your payments to better suit your income makes it easier for you to pay in full and on time each month, which is good news for your credit score and stress levels.
Confidence Is Key
Another significant milestone, buying your first home, is a financial goal that many adults are currently working towards. The process of becoming a homeowner can often seem intimidating, especially if you’re unsure if you’re actually ready for that kind of commitment. It can be fairly easy to focus on the negative feelings that arise when approached with a significant milestone such as this. However, you’re likely not giving yourself enough credit, and although the process can be tricky to navigate at times, it’s important to not deflate your own dreams of owning a home one day.
Of course, there is definitely a lot to consider when it comes to buying your first home: mortgage rates, down payments, property taxes, etc. You also need to ask yourself if you are in a position to stay in your home for an extended period of time. As Quicken Loan suggests: “Generally, we recommend you only consider buying a house if you plan to live there for at least five years, but this depends on a lot of factors, like the housing market, rental prices and how much equity you have in the house.”
Create a goal for yourself
While you may not be able to afford or find your dream home right now, it’s still worth creating a goal for yourself and begin working towards it. With that in mind, shopping for a new home can certainly drain you mentally and physically, which means it can be tempting to give up. Nevertheless, with the right budgeting, discipline, and determination, buying your first home doesn’t have to be so scary.
As we mature, financial stability becomes more and more important. Finishing school, owning a home, and finding the right career are all valuable goals the majority of us all hope to achieve one day. While money may not buy happiness, when we are able to better manage our time and money, we can worry less and enjoy our spectacular life even more.
Avery T. Phillips is a freelance human being with too much to say. She loves nature and examining human interactions with the world. Comment or tweet her @a_taylorian with any questions or suggestions.
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