Despite best efforts, many leave post secondary education with student loan debt and the job market isn’t always so friendly. Taking a look at some numbers can give an idea of what to expect in terms of income and expenses (including loan payments).

If you can earn $22/hour or $44,000/year, this will put about $3,000 (net, after taxes) into your bank account each month. Adding up your expenses such as:

• $800 Rent
• $250 Food
• $200 Transportation
• $100 Activities
• $100 Clothing
• $300 Entertainment
• $50 Health
• $50 Prescriptions and Household
• $40 Grooming

These total to $1,890 per month. If you’re spending more on rent, transportation or have additional expenses (gifts, holidays), this number goes up, easily! Add onto this your student loan repayment. Here are examples of your payments:

1. $20,000 Owing and repaid over 5 years = $421.75 per month compared to payments over 10 years = $252.36 per month. The difference is the interest paid. 5 years = $4,505 vs. 10 years = $9,483.
2. $50,000 Owing and repaid over 5 years = $1,054.37 per month compared to payments over 10 years = $630.90 per month. Interest paid over 5 years = $11,262 vs. 10 years = $23,708

Repaying debt more quickly frees up cash for other things and means less interest paid. The balancing act is to repay debt while also starting some savings whether it be for a rainy day, a great vacation, a first home or retirement. Starting to save early allows many years for your money to work for you.

While fresh out of school, living like a student is easier and can make all the difference in getting ahead sooner.