Someone lied to us all about going to college and taking on student loan debt. In a few cases, getting a degree leads to massive wins in the civilian sector or military.
However, taking on the debt associated with these degrees can put you into a form of slavery called indentured servitude (Read “In-debt-ured Servant”).
The best way to regain your freedom is to take massive action against your student loans. Hello, and welcome to the Debt-Free Society series (credit cards, automobiles).
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My experience with student loans. In 1998, I watched my mom assume some student loans to help my older brother get to college. I promised never to put my family in this position.
In 1999, I joined the military, and the rest is history. In fact, I am still in the Marine Corps 23 years later. I have never assumed any student loans, and the same goes for my wife.
The ideal situation. The best way to beat student loans is never to get them in the first place. If you are reading this before going to college, please take heed. Let’s quickly look at some ways to avoid student loans.
Read a book. Before you even consider college, read the book “Debt-Free Degree” by Anthony ONeal. He reviews dozens of ways to get a college degree and have zero dollars on your balance sheet.
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Attend a community college. Knocking out your general courses while living at home is a great way to go if you don’t have a scholarship. Pay your parents a little rent, which will be a good experience for you and your parents.
Join the military. I am a huge fan of the military. Not only will they pay for your college afterward via the G.I. Bill, but you can get a free education while you serve.
So, just for serving four years, you get the G.I. Bill, VA Loan (for a house), a skillset, and the opportunity to go to college while on active duty. Where do I sign?
Use real estate to pay for college. If your parents are thinking ahead, they have real estate set aside to help pay for your college. Read my Pay for College with Real Estate series (101, 102, 103, 104, 105).
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What if you already have student loans? If you have taken student loans, and they are crushing your future earnings, it’s time to make a change.
Here is a bit of tough love—you’ll have to work twice as hard to pay off your loans. The only way to get ahead of debt is to take massive action.
The American Dream costs $5 million. Student loans are just part of the overall cost associated with the American Dream. Even if you avoid student loans, many other costs still factor into an American lifestyle.
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Having multiple income streams is the secret to student loan debt (and an overall debt-free lifestyle). Let’s review the rulebook for life in America.
Nowhere in the rulebook does it say that you can work one job and achieve everything you want and need? That’s the primary lie that people sell us daily.
They tell the standard American that they can work eight hours and have a big house, two cars, kids in private school, and vacations in Bali. The eight-hour mindset destroys wealth.
The truth about money. When you work eight hours and come home to watch Netflix, you’re ensuring your student loans sit in your inbox for years.
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You should watch TV only when you are earning passive income while laughing and crying. You will never get out of student loan debt with the eight-hour mindset.
Passive income is the key. Student loans differ from credit cards and automobiles because they can be a more considerable sum. Therefore, the action you take needs to be enormous.
You need to make money 24 hours a day—even while you sleep. An example of this concept is releasing a book or starting a website. Yes, these things take time to get going, but they work in the background.
Passive income vs. active income. Don’t get me wrong; you can destroy student loans by working multiple jobs and living below your means. I just read a book on couponing for beginners.
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Do whatever it takes to pay off your loans as fast as possible. However, over time, passive income will continue to snowball into larger and larger sums of money.
Therefore, if you do the difficult work of starting a website in your 20s, you can reap the rewards for the rest of your life.
It comes down to having the vision of truly passive income. Say it takes 4000 hours of working after-hours to get out of student loan debt.
You can spend hours driving for Uber and never receive a recurring income. Once you complete those 4000 hours, you’ll have nothing to show for your manual labor.
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Or you can put those 4000 hours into creating a website, becoming a content creator, or starting a business. The chances are that Uber will pay more in the short term, but having a backlog of content or a website will pay off huge in the long run.
Also, when you start something in your free time, you can leverage this knowledge and experience for increased pay in your field. I can write, edit, and publish my own books. Do you think that holds value in the workforce?
Conclusion. Student loans are more challenging than consumer debt. You need a long-term strategy to overcome these pesky loans.
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You can work your way out of the debt by taking on additional jobs. However, starting something creative or a business may be a better idea.
Once you get the ball rolling on a personal project, the power of compounding will help you pay off your loans. But, after the initial work, you’ll still have a tangible asset to assist you throughout life.
Additionally, you’ll build experiences that most people cannot imagine, making you an invaluable workforce member.
Please read my Creating Passive Income from Creativity series (music, photography, art & design, video, audio & speech, writing) and Starting a Home Business series (intro, outside, online, content, consulting).
Only you can decide to take massive action against your student loans. Remember, you’re on the clock, as each day in debt causes unseen pain and trauma. Get out of debt fast!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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