Today marks a significant milestone worth celebrating: I’ve paid off the remaining balance on my student loans. When I graduated residency in 2021, I was three-hundred thousand dollars in debt. Being debt-averse, I made a conscious decision to aggressively pay down my debt. Financial experts might argue that this wasn’t the most mathematically sound decision. From a purely numerical perspective, their argument holds merit. It probably would have been more fiscally intelligent investing that money in the stock market. That being said, the debt very much bothered me, so for peace of mind sake, I opted to get rid of it as quickly as possible.
I was fortunate to receive some loan forgiveness from my employer, however this only accounted for roughly one-third of the total debt. I put away 5-10k each month from my paychecks, and once the interest rates resumed, I paid them off lump-sum.
Some may assume I suffered through this period, however I was also able to travel the world, buy a home, and pay for a wedding. I did not feel like I made any significant sacrifices. You can have both if you are intelligent with your money and have a plan.
I am very proud of this moment and it has offloaded a significant amount of stress. I spent nearly every day thinking about how much money I owed the government. It felt like I did not have complete control over my life and finances. I now look forward to investing the additional available income in the stock market to reach financial independence. I also still drive my same vehicle from medical school, so I may reward myself with a new car as well. Do not forget to enjoy your money as well!