Once you graduate college you probably feel like a huge weight has been lifted, and earning your undergrad degree is certainly something to celebrate. How you decide to celebrate though will likely depend on several factors, including but not limited to, job prospects and finances. If you are carrying student debt and wondering how something like a vacation can fit into your post-grad budget there are ways to make it work.
Walking off the graduation stage straight onto an airplane would be amazing but might not be reality, or necessarily responsible regarding your finances. If you are amid your grace period, it might be best to use this time to understand what your monthly payments will look like once it is over before you plan a trip. Having said that, this is a great way to determine what your budget can and cannot handle so that you can vacation as stress-free as possible.
Or maybe you graduated a few years ago, are in a groove with your debt repayment plan, and are looking for ways to free up some cash so that you can get out of dodge. In that case debt consolidation might be a great option to research.
There is a guide to help you understand your options and figure out the best choice for you when it comes to student loan consolidation and what borrowers need to know. Figuring out how to pay your totals off quicker and/or reduce interest rates to pay less overall is a common approach when people are making personal budget edits.
Redesign Your Budget
It is almost impossible to have a handle on your personal finances if you do not track them and spend in accordance with a budget. Traditionally those of us that have a large section dedicated to student loans, adding in a travel section might seem frivolous. If you are hesitant to spend money to vacation while still carrying student debt, consider rearranging the parts of your budget that are not fixed, like social outings, dining out, or shopping.
If you are willing to skimp in these areas for a certain amount of time and save those funds, then you may feel more relaxed about allocating your money towards travel. This is an example of why tracking your income/spending is so essential to establishing and maintaining a healthy relationship with your finances. Blindly saving, or spending, can have long-term consequences that impact your money management.
A less daunting aspect of the relationship between student debt and travel, is that a lower budget gives you an opportunity to get creative with your plans. Researching low-costs ways to experience the area that you will visit can uncover hidden gems or local attractions that you may have missed out on had you had the freedom to spend an unlimited amount.
Group travel can also be a way to enjoy travel at a lower cost. Splitting a hotel room between you and a few friends will certainly be cheaper than traveling along, so this may be a great opportunity to create some memories as a group.