Reader Q&A: I Want To Start Saving For A Home. How Can I Do That, Pay Off My Loans And Still Enjoy Life?
Tanya, 28 asks...
Facing a financial dilemma? We are here to help.
Every month, we’ll answer questions from you, our readers, to help you get a better understanding of your finances.
Got a question? Send it to us at hello@clevergirlfinance.com or leave it as a comment below!
Today's question is from "Tanya, age 28”:
I recently got a big promotion and want to start saving for a house. How can I balance that with paying off my student loans and still enjoy my life a little?
Congratulations on your big promotion!
Now that you’re in a better financial position, here’s our advice on maximizing your new earnings:
1. Celebrate your win
You’ve probably gotten a congratulatory handshake from your boss, followed by a pat on the back from your co-workers, but have you taken the time to celebrate your win?
Celebrating yourself acknowledges your hard work, keeps you motivated, and feels good.
While it may be tempting to celebrate by splurging on a new phone or buying everyone drinks at happy hour, there are simple ways to celebrate. For instance, you can:
Make a celebration playlist and groove to some of your favorite songs.
Take a break from work and use some PTO for a mental health day.
Share the good news with friends and family.
2. Set clear priorities
After celebrating your wins, it's time for a little self-discipline. You’ve probably heard the expression, “If you earn more, you spend more.” Well, let’s make sure that doesn’t happen to you.
You’ve mentioned that you want to save for a house and pay off your student loans. Since those are your two priorities, let’s break those down.
How much do you need to save for a house?
Look into the prices of homes you’d like to buy. Figure out how much you’ll need for a down payment so you can set a savings goal for that amount.
Additionally, you can look into first-time home buyer programs. Your employer may offer assistance. You can also check with your bank or credit union to see what programs they offer.
How much do you owe in student loans?
Here’s the uncomfortable part: finding out how much you owe in student loans.
If you want to lower your debt and start aggressively paying it off, you have to know how much you owe. With your total debt amount, you can use tools like a debt calculator to determine how much you need to put toward your loans each month to pay them off by a certain time.
Once you know how much you need to pay on a monthly basis, you can devise a debt repayment strategy. Here are some resources to look into:
Loan forgiveness. If you’ve been granted a federal student loan, you may qualify for loan forgiveness.
Different payment plans. With some payment plans, you can make payments based on your income, a standard payment, or by consolidating your debt.
Student loan assistance programs through your employer. With these programs, certain companies will help their employees pay a portion of their student loans.
Refinancing to a lower interest rate. Involves working with a lender to lower the interest rate on your loan. (Be sure you are aware of the fine print e.g. you may lose income based repayment options etc).
Whichever payback method you choose, consider making larger monthly payments on loans with a high interest rate.
3. Create a balanced budget
A balanced budget is key to having a life where you can pay off debt, save, and still have some fun money left over to enjoy life.
Whatever budgeting method you’re using, make adjustments to add in your new priorities of saving for a house and paying off debt.
After allocating money for your new goals, decide on how you want to use the rest of your earnings. Do you want to start getting your hair done weekly? Perhaps you’d like to take more weekend getaways.
However you want to spend your money so you enjoy more of life, make sure you make room for that in your budget.
Create a separate section in your budget for fun money or guilt-free money. When you have money allocated for things you enjoy, you’ll feel less guilty about spending money, and you’ll make sure to use the money wisely.
When your budget is balanced, you can feel better about where your money goes.

4. Automate & separate your savings
With your budget set, let’s make saving money even easier by automating your savings.
Talk with your bank or your employer about having a portion of your paycheck deposited into a savings account.
When you automate your savings, your money can accumulate fast. Make sure that your savings account isn't linked to a checking account. This way, you won't accidentally dip into your savings.
5. Get creative to boost your savings
The more you save, the faster you'll hit your goals. Consider different ways you can put more money towards your savings. We've got a few ideas you can start with.
Lower your expenses
I remember the first time I got a raise, there was a new pair of shoes I didn't hesitate to buy. And while it's tempting to spend more when you have more, you don't have to empty your wallet.
Even if it's for a short time, try lowering your expenses and living below your means. As you do, you can put extra money towards your savings and paying off loans.
A simple way to do this is to continue living with your previous salary. Any extra money goes towards your savings.
Put any extra money towards your savings
Getting a bonus from your tax refund? Have a side hustle that is making you a couple hundred a month? Whatever extra money that comes into your life, put that money in your savings or towards paying off debt.
Try a savings challenge
Another way to boost your savings is through savings challenges. This is where you gamify saving money. Some common challenges included
The envelope method, where you can save over $5,000 in 100 days
A no-spend challenge where you only spend money on essentials for a period of time.
$20 Challenge, where you say $20 every week for a year
Finding fun ways to save money can help you save money fast.
6. Be flexible
With your new systems set into place, it’ll be easier to save, pay off debt, and buy yourself a special treat now and then. However, life is unpredictable, so a crucial thing to remember is to be flexible.
Schedule a day once a month to review your budget. Make sure you’re staying on track. If new expenses come up, make sure to add them to your budget. Likewise, pay attention to market conditions. Changes in interest rates can influence your long-term financial planning.
Achieving your money goals takes time and discipline
Getting a promotion is a huge accomplishment. Keep up the good work, and we know you’ll shine in your new role.
With your new salary, you might need to set new income goals, or you might be interested in investing. If you’re looking to create a new plan for your money, be sure to check out our free course on creating the right financial goals.