Does the food change meaning the financial order of operations if your student loan balance is huge? My financial loan balance is almost 300K, so what do you think? Um, okay, this isn't okay. This is an interesting one, Joe. First of all, $300,000 student loan

balance, uh, is big like that. That is a significant and substantial amount of debt, and what I hope that means is that you have followed our money guy guidance that says okay when you graduate with student loan debt, your total amount of student loan debt cannot exceed or

should not exceed your first year salary. So, I'm hoping that with $300,000 of student loan debt, it means that you have pursued, you have pursued a vocation that's going to have a high starting salary. Maybe you had to go to graduate school or medical school, and

now you're going to get into the medical field and you're going to a salary that's going to be in excess of $300,000 in year one. Assuming you've done that, you've not run afoul of any of the Money Guy Rules, and so then the question

becomes okay if I've got this debt sitting here and it's $300,000, how do I approach it? How do I approach tackling it? And how do I approach building what is the right order of operations as it's connected to the student loan debt? By the way, if Joe, you

have to be in the medical field because if you're a finance major and you came out with $300,000, please leave the finance field because that is just not good financial decision-making. Um, because I look, this is a reality. If, if you have $300,000 of

debt, I would first try to exhaust all opportunities to, to see um, there, there's two, two avenues here we'll go first with the medical avenue. If somebody's going, coming out of residency with $300,000 worth of debt, the good news is hopefully

they're going to be making $250, $275, $300 um, there's going to be, and that's going to allow you, and I would just encourage you if that's, if, if we go down this medical field um, with high income opportunities when you leave your

residency and you're used to your peanut butter and jelly life, don't switch to the European cars, don't switch to the steak dinners because you have $300,000 worth of debt. I think you've got a double duty responsibility, not only do

you have to catch up on your saving and investment, fortunately the financial order of operations is going to be there to help you to know what to do with your next dollar, but you're also going to have to go above and beyond the initial 25% savings rate and use and live on a

life that hopefully will pay off this debt as fast as possible. Now if you're not in the medical field and somehow you amass this level of debt with some other major, I would encourage you, hopefully like you know, if this was let's just take like a criminal justice as an

example or something where there might be some overlap or education to where this could be eligible for one of the federal programs that allows you to extinguish this debt by, by working for a number of years for the federal government. Get creative with this because this is such a large sum of

money, it's got to be unique, and that's one of the things I'm most proud of with the financial order of operations. It is designed to help 99% of the people out there, but there's always going to be strange, odd one-offs for people who either have huge

numbers like big incomes, big debts, and other things, and that's when finance does become a lot more personal. And that's why I'm hopeful that somebody like this can, can really get a handle on all those influences. Yeah, I think you said personal finance is indeed personal.

I'd love for this person, hopefully they do have a big shovel that allows them to do a lot of stuff. Not only, you know, we didn't really talk about interest rates, but like if it's an interest rate that would substantiate, okay, I need to

prioritize and put some effort and attention on this debt. At those super high income levels, there are also tax incentives that you need to be aware of. Okay, if I, if I'm able to do my 401k, if I'm able to do an HSA, if I'm able to

offset my tax bill, I can do that. But with a large enough shovel, I can do that and also extinguish this debt. Because you have to think through what are the absolute best use of my dollars? The financial order of operations is a guide to kind of give you the general path

that might make sense, but when it comes down to your unique and specific situation, you'll have to answer that personally. Well, and also I think a lot of times, and this is something anybody who's got anyone in your life that's, that's dealing with student loans is

realized I think sometimes it comes feeling too easy to get is that every dollar and that's why we send people to the wealth multiplier and other things is because once you realize what every dollar has the potential to become you'll think about how you spend it, you'll

think about how you use debt and and this This concerns me I'm hopeful that Joe is in the medical field going to come out and be extremely successful and we're going to be extinguish his debt through just abundance of success but just be use this as a tale of concern

um to to not get yourself in that much debt we still stand by the fact you should not leave college with more student loan debt than you're anticipating making in your first year salary that will keep you out of trouble

I'm Drowning in Debt. What Now??

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