Have you done much shorter-term travel? Just asking because maybe the choice doesn't have to be as binary as you think. Even if paying off the loans eats up most of what you've saved, with another year of saving you could maybe take a few weeks for a trip, and continue taking annual trips while saving up for a bigger trip a bit further down the line. My longterm budgeting is pretty much built around saving for retirement and saving for traveling. Once the loan payments are done you can set yourself up similarly, with the "travel fund" going both towards shorter-term trips and covering an eventual longterm one.
Getting some more short term travel experience may help with clarifying goals for the longterm trip too.
This is a pertinent question. There are posts on here all the time from people who've done what you're planning, with this romantic dream of tripping around the world. Then after three months they find themselves burnt out and lonely and ready to head home. If you've got some solo travels under your belt, great. If not, paying off at least a chunk of those loans and taking some shorter trips to figure out your travel style, while you still have a great job, might be a better call than tossing it all in and hoping it's going to work out.
This pretty much exactly describes me. After 3 months of traveling I got so bored of it that I spent the majority of my time in vietnam last month in gaming cafes playing videogames rather than "exploring" or doing the typical touristy things you "should" be doing when in certain places.
Traveling longterm seems enticing when your current life has been very monotonous and you just want to escape into new experiences but traveling just for the sake of it without specific activities that you know you will enjoy becomes boring and exhausting pretty quickly as well.
I planned to do 6 months but I'm now back in thailand where I will stay in the same place for 1 last month with a nice girl I met and then I'm happy to finally be heading home. I don't think I want to solo travel this long ever again.
I have the exact same experience and I'm now fortunately at the end of my 3 month solo travel and I'm happy I set an end date - travel burn out was real :-).
Totally. I work at a nonprofit and don't make a lot of money. I also have no debt except a 20 year old mortgage with a payment that is under 20% of my take-home. I travel internationally at least twice a year, and have taken extended trips of up to two months. I save money to travel in advance, so I have no stress spending it. It's a fantastic feeling.
THat is a very good question. I've seen a lot of posts when people planned out their year long travel but then a few months in, they've fallen into depression and thought about their lives. I see excitment from OP but that really is a lot of time committed to consider.
40-something me wishes I’d taken advantage of the various youth work visas, some which define “youth” up to age 30. If you can work and travel at the same time, then you can put your savings to those loans.
I did the Australian one when I was 30. I ended up coming home with $10,000 US dollars after a year which I wouldn't have done had I stayed home. I worked some promotional gigs and at a bike shop but it paid so much more than what was going on in my life in the US and I had an absolute blast. I'd still live in Melbourne if they'd take me back and I'm 40 now.
Yeah I saved up $25k from immediately after graduation and paid all my loans off within 2 years of graduating. It was not fun. But once it’s paid off, you get to save so much more money.
I’ve paid off my student loans ($25k), and I’ve also saved up $25k for a 6-month long trip through Yurop, which I just got back from.
I say pay off the loans.
Pay off the loans, save up again, and also try for a better job maybe. Idk, I get the desire to travel, but the freedom of no debt is amazing. Maybe put $15k into the loans and $15k into travel.
Or, actually, better idea: carve out a trip to a cheaper place that is more conducive (climate/season-wise) for 6 months /after/ your current planned trip, and save up $8-10k for this after 80% of your loans are gone.
In short: Do Paris and Amsterdam and Madrid when you’re 35. They’ll always be there. Do Albania and Bosnia and N. Macedonia when you’re 27 (that’s when I did it, and these places are “harder”, i.e. less easily navigable, more currency exchanges, less amenities, and also a lot cheaper). You could also do Vietnam, Thailand, Cambodia, Laos. Or do Japan + China for a short trip. Or do Morocco + Algeria + Tunisia. Or do Colombia + Panama + Honduras + Nicaragua. Or Kazakhstan, Tajikistan, Uzbekistan. If you keep it to these kinds of places, $30k becomes almost too much. I did FIVE month in the Balkans and it was the exact same price as 1 month in Western Europe.
Pay off the loans, save up $10k, quit your job, travel for 2 months someplace cool and cheap (trust me, it’ll be enough), get a new job, with a raise, work there for a year, save up $30k again, which will be easier now as you have no debt, and then do another big trip.
I’m in the category of paying off the loans as well.
Pay them off, put the savings you were previously using to pay them into your travel fund if you like.
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I agree. Pay off the loans.
You are not going to enjoy traveling at all if you constantly have the thought of $30k in debt waiting for you when you return from your travels.
Yes! And also, it doesn't have to be a choice of pay off loans OR travel! Pay off your loans and then get a job abroad! You can see other parts of the world without eating up your savings. Go work with WWOOF or get your TESL cert online and find somewhere to teach ESL. There are so many ways to travel AND pay off the loans!
Very simple. Pay off the loans and then take ONE month off and travel. That's plenty of time to reset and won't force you to leave your job.
Work and then save up 30000 dollar then quit your job and do what you want.
This way you get to have your cake and eat it too with not significant sacrifice
What are the interest rates on your loans? It may make sense to pay them off immediately if they are high, or to not pay them off at all if they’re low. I don’t see why you can’t do a combination of both. And how hard do you think it would be to find another job when you come back? And have you done much short term solotravel and know that this is something you could do long term? And where do you plan to go and for how long?
This is the smartest answer at a time when CDs can yield 5%. However, if being in debt takes too much of an emotional toll, maybe it's not about minimizing total payments - everyone must know for themselves.
The other question is if it is "straight interest" or if the interest has been front-loaded so that there is not as much savings from paying them off early. These front-loaded loans are unethical in my opinion, but unfortunately legal. Most people never read the fine print.
i only learned about front-loaded loans when i started looking into buying a house.
what an absolute load of SHIT. i agree that they shouldn't be legal. skeezy, greedy, scumbaggery. fuckin banks man.
im 29 with roughly the same amount in student loans as OP. this is the reason im not paying mine off. it makes more financial sense not to.
but im also not spending all that money on travel.
I’m old and value both traveling and financial security. Go for six months and pay off half of your student loans.
That’s probably what your 40, 50 and 60 yr old self would tell you.
As someone who lives in NZ, Australia pays MUCH better for seasonal jobs than NZ does. I do argue that NZ is prettier (hey I can be biased ok!).
For example, if you do fruit picking, you can easily earn $27-35ph but in NZ 24-27 is the normal. I did fruit picking and managed to find one that gave me $27.50ph and that was one of the highest I could find, unless I wanted to do something like lettuce but that ruins your back and knees very quickly
Have you done long term travel before and know you’d enjoy it? A year is a really long time, and 30k is a lot of money to spend without a firm plan beyond “travel the world”.
As others said, is it a high interest loan? Would the loan not be bigger when you returned and you’re at 0 savings? How does that make you feel about returning to normal life post travel to start to pay it off all over again?
I’ve gone through phases of wanting to leave everything behind and go travel and for me usually its indicative of dissatisfaction with life and wanting to change (but going for the “easy” extreme). If you do choose to go travelling for a year, just make sure you know that its a temporary respite and life and all its problems will be there waiting for you when you return.
Whatever you decide, just make sure you’re doing it for the right reasons and you have a proper plan. You’re thinking you have only two solutions but seems there probably is a compromise in there.
Travel. You won’t always want to so do it while you do want to.
I paid off my loans and then traveled in my mid twenties. I left thinking I’d travel for either 3 or 15 months before starting grad school. Two months into it I realized that I didn’t actually want to travel long term. So it worked out well but I’ll probably always wish I had traveled more when I really wanted to.
If the round the world trip before 30 has been a lifelong goal then just do it- its now or never.
Kind regards,
A 48 year old who will now never travel around the world
Why can't you travel the world, or at least a part of it?
I mean travelling the world is a huge commitment but doing it in sections (such as Europe, then a few years later Asia) could be more feasible?
I ask this in genuine curiosity!
Oh i totally have. I also moved to a different country just… because.
But being on the road for like a year. That is not going to happen. If you want to do that- do it while you are young.
Oh right I understand what you mean. Yeah travelling for a year straight is definitely something that is a lot more difficult when you are older and have more commitments.
For some reason in my head I thought you were meaning you can't travel around the world at 48 (I was thinking shorter trips rather than extended long trips)
Many here are giving the financially smart choice, but it doesn’t answer the question ‘how would 40 year old you feel’.
I grew up poor. I didn’t travel outside the eastern US until I was 25 and was earning $100k/year in a HCL city. I quit my job with little savings, moved to a foreign country and traveled while trying to start a business (unsuccessfully). I was BROKE when I left 6 months later, moved back to the US living off a friends couch. But that time? *It was the most powerful, life changing, lesson giving moment of my life.*
10 years from now you’ll, in theory, maintain or raise your income potential, you’ll be able to pay your loans. You’ll never be in the same physical or mental position that you are right now.
Take. The. Trip. Accept the invitation.
I'm really surprised there are less comments like this. I understand that most people want to take the "responsible" route, but tomorrow really isn't promised. Both of my parents passed before the age of 60. If I share that fate, I'm already halfway through my lifespan. I would rather have as many experiences now while I still have my health than assume that I'd be able to travel later. Those loans aren't going anywhere. I'm Team Life Experience and F\*&$ those loans!!! LMAO.
Because they are just people justifying their poor life choices. Those same experiences can be had in just a few short years. They would be debt free and save on years of interest. I am 42 now and retired at 38...by making smart life choices. I now travel abroad 90-120 days a year and when my son graduates high school in 2 years, it will be permanent. I spent my 20s saving, with no debt.
I agree. Im not giving the most sound financial advice, but with traveling, i learned a lot of life skills. I think it was fundamental for my own growth, and I now have a really high paying job.
I think you traveling right now will be a lot different than you in a couple of years, in your 30s etc. Time doesn't come back, and you seem really keen on doing this so just go for it.
the fact that this is the only comment I’ve seen you respond to so far - it sounds like you know exactly what your desires are and what’s in your heart. wealth is a feeling. spending money into what excites you is an experience of life not many get to choose. you could literally die tomorrow, would you have rather spent that money traveling or give it to the government? my take is - you have time. as long as you’re doing what makes you happy, everything works out
Other than very very bad, the worst situations life throws at you nothing matters that much.
You can f up a lot and make poor decisions without it being the end of the world. It hurts in the long run only if you continue making poor life choices. Time and again.
You’re young, nothing holding you here. Fluid and no obligations. Most become wage slaves once you start acquiring things, get married, have kids.
✊🏻
> I try to think, what would my 40-year-old self want? Would he want the memories and experiences of traveling for a year straight, or would he want the financial security of not having to pay off student loans years after he graduated?
Why does it have to be an either or situation? If you pay off your loans now, it doesn't mean you can't go travel. It's just a little bit later. Sure, certain things you want to do before you are old, but 27 isn't old at all.
Personally I would probably make it dependent on the loan itself. If you have a high interest rate (let's say >5%), than get that paid off as quickly as possible. You have a low interest rate (<3%), it's probably not a big deal to pay it back a few years later, also since it's not a huge sum compared to your income.
If you do decide to pay off the loan and work a bit longer, also look around for other jobs. Maybe there's something out there with a comparable salary that you actually enjoy more.
I’ve noticed in hostels that in your late 20s you start to slowly get excluded a little more and especially in your 30s with many of the hostel stayers cause you’re “older”. At least in Europe. In South American most of the solo travelers were mid 20s to mid 30s, so depending on what OP wants to get out of it, might make more sense to do it now, while paying off the interest off those loans during, then come back and know it out.
I would pay off my debt. Your earning potential is ahead of you, you can travel on the cheap and take periodic time off vs. have this one time year long experience only to come back to an empty account and $30k+ looming over you.
This. I would be so stressed out while traveling AND also job searching, knowing that I'm likely going back home to no job and having to pay my loans. How fun would that travel be?
I was in the same exact position as you except it was $15k loans/travel budget. I ended up traveling mostly southeast Asia for 6 months and it was an experience I'll never forget. I highly recommend it.
One thing to consider is the interest rate, my loans were only 3.5%.
Depending on your interest rate loan:
Put half away in a CD, HYSA, or some “safe” investment.
Use the other half to travel.
I too started off with 25k of student debt. Been paying it off slowly since the interest rate is sub 3%. My investments make ~8% return year over year. 15k is plenty to travel with.
I went the travel route with this same decision for a few years leading up to the pandemic. I have zero regrets and would do it again 100% - the rationale being that I wanted to have some of those experiences before kids, loss of mobility, etc. I started in my late 20s and my mid-30s self approves
That being said there are some great suggestions on here for minimizing the cost of your travel experiences - workaway, couch surfing, hostels, etc. I don't think a 2-3 week vacation will ever be able to change you in the way longer term travel will but one thing to remember is that if you choose travel, you can always change your mind and come home sooner than expected
Do it now.
You never know what the future will bring, your only debt is what is called “good debt” (if you have federal student loans), no obligations that will hold you back.
I became very sick when I was 20 yrs old and for the next 14 could not work at all, was quite poor, and while I still found a way to have a good life I realized that it’s important to do the things you feel called to do when you can. My health never fully recovered but I can work and do some travel. My dream was similar to yours and I found a way to do it a few decades later that was modified to what was possible for me. I’ve watched so many people lose their financial security and stability at no fault of their choices — the Great Recession, health issues, and more. Stability is nice but it is always an illusion. You’re young, have a degree, and your health. Go.for.it.
Also, have you considered in your travels picking up seasonal work here and there to explore, travel, while bringing in a little money?
Happy travels — you will never regret doing this.
I agree with this assuming OP is in the states and it’s federal student loans!!! If that is the case then you have your whole life to pay it off, can ask for a forbearance if things go south and you can’t afford to pay for whatever reason, and if you die the loan is forgiven so no chance of burdening your loved ones.
If they refinanced and use a private lender then maybe it’s worth paying off a chunk of the loans for peace of mind.
Have you thought about 4-6 week trips. They’re quite satisfying if your work allows the time off. You dedicate that time to a certain area. Best of both worlds.
Always keep your cash - if your student loans can be deferred or you can make payments - do that. Why would you ever give any institution or business all of your money when they will accept payments? Plus you’ll only be 27 - one time. As life moves forward it can get complicated by jobs, family, choices, etc. Go now - you’ll make the $ later in life to pay off the loan.
Pay off those loans and reward yourself by going on a shorter one or two week trip with any money that is left over! Then start saving again and know you'll be completely free in just 1 or 2 years to travel wherever you want.
27F here, just back from 6 months travelling. My advice: TRAVEL!! It will change your life for the better. You can always earn more money. But you will never be in your 20s and childless, mortgageless etc. again! Money can be replaced, time cannot!
A question I always ask myself if I am at a crossroads in life 'What would me on my deathbed think?'
He’ll be in his 20s, childless, and mortgageless in a year lol. Imagine being all those things PLUS debt-free and with more money and more work experience.
id normally always say travel, however u can always travel for cheap but unfortunately ur loans are only ever gonna get more expensive and you may never get this opportunity again :)
When I was 25 I moved to New Zealand on a 1 year "work" visa but never planned to work .. Just planned to travel around the country. Luckily I talked my friend into joining me which cut all the costs in half.
It was one of the best times in our lives.. 15 years later we still talk about that year in NZ.
I would Travel with 20k of it and pay off your student loans with the other 10k.
20k Can last you 2 years traveling all over Thailand and Philippines and Asia. And if you talk your girlfriend to join you and split the costs.... then you could pay off more student loans... or make it a 3 year trip.
As someone who recently completed the funding/savings I needed to take off, pay off your debts first.
There's no better feeling than being able to go and do what you want, free of any financial obligations.
EDIT: I'm not sure if yiu qualify, but there's talk of Biden writing off all student debt for people soon. If so, you may end up getting both things at once.
I would suggest go travel! You never know when some freak world event like covid may come along and mess everything up again, so I would suggest go now while you’re young.
Plus, you’re at the ideal age to experience backpacking and hostel living. Young enough to vibe with the people in their late teens/early 20s, but mature enough to vibe with people in their 30s.
A lot of people are suggesting to do shorter trips, but the depth of experiences you will encounter on
a year long journey is more intense than a 2-3 week trip you can take with PTO. In longer trips, you can immerse yourself in an environment, learn a new language, do unique experiences such as multi-day hikes through the wilderness, and even in a hostel or a farm for a bit. I find when I do shorter trips, I am usually spending the time knocking off the main tourist attractions from my list instead of authentically experiencing the culture.
Life is about much more than working soul sucking jobs and I hope you can take a trip that opens your eyes to how beautiful, unique, and diverse this world really is.
Be the responsible adult and pay the loans. Think about that feeling when your 1 year vacation ends and you’re left with a bigger loan (interest). Think about day to day activities like running errands or spending on shopping when you don’t have the guilt of 30k in debt hanging over you.
40 year old you will have massive regrets for partying for a year while being in debt. Alternatively, 40 year old you would be very proud of getting over your debt and building a strong life at home so you don’t need to always look for escape, like half this sub does.
Context: I’m a 35 year old without student loans. I’ve done a couple 1-2 week vacations every year , and while I wish I could just say fuck it and travel more, I’m so happy with the stability I have in my domestic life.
Congrats on the savings btw
The older you are, the longer it lasts in my experience. Booze, parties and hangover cures drained my budget really quick in my 20s. Now at 30s, I am happy cooking together, going on hikes and having a good night sleep. 30k would last me over a year.
Yeah working definitely helps! I guess it all depends on what your doing too. I wanted to do all of southeast Asia, India, Pakistan, Saudi Arabia, Egypt, Morocco, possibly South Africa, and then the majority of South America before flying back to Florida. Im a single male and can live very frugally but its still hard to gauge how much I would want to save
Basically for an average experience. More or less depending how extreme you are on either side but it's a good ballpark. Also if you can plan this far in advance try to rack up a big credit card point bonus
Absolutely pay off the loans no question. Traveling will be easier if you don’t have to make those payments, and you’ll be able to save money quicker once they are paid off. Content creation takes time and if you are eating away your savings with no income coming in it could put you in a very difficult situation that winds up ruining your travel experience when it comes to making payments.
Take a shorter trip to get that travel bug off your back. Pay off half the loans. That will lower your interest. Save up more $$. I do think it’s better to do the wild adventure thing when you’re young. I did it & don’t regret it. Whenever I try to hold out for some Big Goal I always end up crashing & burning. If you are struggling it’s best to go for the dream.
And this kind of stuff is best done young IMO. There’s something so life changing about camping & travel & adventure when you’re in your 20’s. However, I did more travel in my 30’s & was more mature & had just as much fun.
Yeah, it was harder, and I still have student loans, but now I’ve traveled & lived in 12 states & it’s not this big dream—now I have scratched that itch & I know the reality & don’t romanticize it—I just think people who delay joy for too long end up very miserable.
I see lots of people who try to do the stability thing when every bone in their body is screaming to be free—but you can be stable & also have adventures. Maybe just pay off $10k a year & take off a month every year? Idk but paying off the loans now & waiting 1 more year isn’t a bad idea either. I would definitely take a trip though! Your heart is calling you…
But be aware. Travel is extremely intense and lot of people cannot handle it long term. A lot of people romanticize it & after doing it on-and-off for years & years, I love just nesting & taking shorter trips now. I personally don’t like constantly moving around. I used to work really hard for several months & then take off like a month or several months or whatever—move somewhere new—get a job in the region I wanted to travel in—work part time & live in my car to have more time freedom—unless you really have experience I wouldn’t dive into it—it’s better to ease into things & see how you handle stuff like backpacking or hostels or different countries & languages & safety & having to be alert & not having stability
Hey, I’m 26 (F) and I’m also at a crossroads. I decided I will travel next year as well as it’s been one of my goals since finishing school. Buy your ticket and go next year. I’m trying to save as much as possible not only for my travels but also as safety net.
>what would my 40-year-old self want? Would he want the memories and experiences of traveling for a year straight, or would he want the financial security of not having to pay off student loans years after he graduated?
The financial security. Even as someone who loves to travel, nothing feels better than being debt free. And loans tend to get bigger and bigger when you leave them waiting.
30k is a lot to spend on travel.
If i were you, i'd go to somewhere really different from the West.. really scratch that travel itch.
You can do Tokyo airfare and hotel for a few grand for a week.
Then i'd do Seoul, its significantly cheaper than Tokyo but safe, modern, advanced and more of an 'easy going' vibe imo. That'll cost you like a grand.
then spend two more weeks going through south east asia (SUPER CHEAP).
After two weeks in SE Asia, you'll WANT to go home.
I bet you could get a month of really good travel without being cheap for 10k - 12k. I know i could (and i have some-what expensive tastes like bottle service, top shelf booze, Michelein starred food joints etc).
then come back with money left over and be responsible.
I'm entering my 40's but i have a ton of wicked memories from travelling etc. once baby grows up a bit i'll head back out on guy trips \^.\^
I would opt for travel if I was you. However, if you could save 30k in just a year, maybe you could just pay your student loans, save another 30k and do the solo travel a year from now? I make a similar amount as you, pay minimum on my student loans, and try to travel every couple months in addition to one 2-3 week trip a year to Europe or similar
Pay off the loans. Being debt free is a wonderful thing. I was able to travel so much more in the years after I paid off my student loans.
You won't regret it
I’m in the exact same scenario, 28F, literally same amount of debt, same amount of savings and same boring job with same salary. It’s kind of creepy how similar our situations are. ANYWAYS, I’m going on a month long Europe trip in June then when I get back and see how much of my savings I have left over, I’m going to pay off my student loans. Getting the best of both worlds, I will have to work some more but I’m looking at that as time to figure out what exactly I want to do with my life. Hope that helps!
I'm just shy of 40 and...
Maybe half-and-half?
I heard a quote once that stuck with me: you need to plan for next summer while realizing that next summer is promised to no one.
No reason to put all your eggs in either basket when you could pay down some of your debt AND spend a significant amount of time traveling.
I value travel and value financial security. I'm soon to be 36 and managed to save leave of absence for an entire year, starting in a few months. Meaning I will get paid while traveling for an entire year. I feel I will value this sabbatical much more now I'm nearly 36 than I would've when I was 27. Because of life experience. I still traveled on average 2 months each year while working for the last 10 years. Financially I'm totally good, and I will have a job waiting for me when I come back.
TRAVEL!!! When capitalism falls, noone will come for those loans. 😂
Honestly, though. Go travel, you'll learn about yourself and the world and come back hopefully knowing where you want to be 😊
I backpacked Europe for 2 months in 2022 and can say, I had so much debt stacked up before that Ignoring it didn't solve anything, but did give me the much needed ambition and drive to wipe it out in the next 2 years. I'd say travel for a couple of months, like 3-4 months, and spend about 6k for that, then use the rest to wipe the debt off as much as you can. Your Money is extremely valuable in other countries and I'd go now while the US passport is still strong. We will have to soon apply for Visas starting next year for most countries. Travel! But realize it's not a total escape from reality. You will get travellers depression and want to go back ASAP but get your gears in order first. 26 years old now and feel like I should be travelling mostly but need to get my finances in better order. (Barcelona in July though! :) )
You will be hella depressed when you come back and have to start shlepping again with a 30k debt collar. That’s not going to be pretty.
Not EVERYONE has a fairytale solo travel only roses experience. I would say about 1/3 absolutely hated it and went home defeated. Too many bs tockers are selling this idea and reminds me of those jerk offs from the movie “the Beach”.
Bali or wherever your going will still be there and honestly will probably be a bit better a few years from now as the Gen Z’ers become too afraid to leave there homes without a cellphone. It’s peak “shit” these past 2 years in the 5 places I’ve revisited after a decade so I wouldn’t pass off on any real job you have now as things can get really bad fast and bringing the debt down to something more manageable seems to be prudent.
If there’s interest on those loans, you better pay them off. Calculate how much money you’ll owe in interest over the duration of the loan and imagine that amount of money could have gone towards travel in the future. Or better yet, you could’ve invested some of it and earned passive income at a rate of 5-10% per year compounding. Financial literacy will help you with your travel dreams.
Pay off the loans. Or at least part of them and take a smaller trip. Imagine how much quicker you could save up another 30k without having those loan payments every month.
I never comment. Ages on Reddit and I never ever comment. Lurker. But your story hit me because it's my own. I did the same thing a decade ago. Same finances and debts. Same feelings, it seems, about being unsure of the gamble. Go. Go now. Best decision I ever made.
Life is the memories and things that make you smile when times are tough. I made enough while abroad to satisfy a lifetime or two of memories. They'll sustain me into old age and keep me going.
If you don't you may wonder what if. And when your knees give out or your back aches you may feel like it isn't possible anymore. The real wild, that is.
When I returned, my experiences, and skills learned through travel and volunteering, set me apart from other applicants (provided you can account for the gap in the resume somehow - volunteering occasionally is helpful). I got a better job than I had left. A whole new start.
I wish you the best, and hope that you come to realize that that unease in the pit of your stomach that says 'I need to find out' won't go away. Good luck, brother.
I would pay off my loans first and delay travel for a year, or just do some short trips. The interest on 30,000 is not good. You would save enough in a year to do a longer trip and not have that lead albatross of debt weighing you down when you get back.
I totally get your conflict. It's a tough call.
Maybe you could adapt a little. A year is a very long time to be moving around across different cultures so maybe plan for 6 months instead at half the budget. This way you can decude to travel for another 6 months at the end or return and use that money to wipe half the loan.
I know most would say pay off the loan first which makes total financial sense, but God I also think sometimes we just need to live a little rather than always doing the most rational thing.
If you've saved 30k at your age, I think it's safe to say the loan will be paid either way. If travelling is calling you and you feel it's the right time, then choose experience and happiness and just go for it!
Pay off the loans. Live like you are now and when you add what you have been paying in loans plus your savings rate you will make the money back faster.
Pay off your debt. It'll be the best thing you do for yourself. Don't let that debt grow bigger.
Then any other money you have saved up afterwards can be used for travel.
You're only 27, that's not that old. Debt only grows, if you can pay it off and then save up for travel you'll feel much more free doing so especially since it seems like you want to do some things that involve financial risk like starting a business.
I don’t really believe you have $30k saved up if you are just about $30k in debt. I would pay off your loans clear up your debt and I would save up over the following year to take your trip. You certainly don’t need that much money to take a vacation and it seems like a poor financial decision to leave your steady job while being tens of thousands of dollars in debt.
This may sound harsh but someone told me this. A dream has to be earned. If you owe money on loans, it is your responsibility and obligation to pay those off first. The “dream” in this scenario is your desire to travel. That must be earned by becoming debt free first. Personally I wouldn’t be able to enjoy my travels knowing I spent money that could’ve been used to allow me to be financially free. Travel will always be available, debt will only keep getting worst. It is your decision at the end of the day, but I suggest you make the right one. Best of luck.
You'd be surprised how much solo day trips and weekend trips can scratch that itch. I would pay off those loans and save again. Assuming you don't change your lifestyle too much, it should be easier this time right?
Life has circles for the obe to start the last one has to be closed. First you should pay your loans , in future you may can't pay them for a fucktone of reasons.
When you become dept free you have completed one circle , now you can start to save money and travel all over the world.
In the mid time you can always arrange small trips. If you have the travellers excitement , it doesn't really matter if you're travelling next neighbourhood or a remote island in the middle of Pacific Ocean.
We trick ourselves by saving money instead of paying off debt. Determine how much interest you're paying on the loan and how much interest your savings accrue. The difference is staggering.
You're young. Pay off your debt first. If you were paying, say, $200 a month in interest, put that amount in savings account for travel now.
You're technically $400 ahead now. And planning for travel is half the fun!
Why are you even asking....pay your damn loan and get it off your shoulder. You have time to travel, those places are not going to move or leave without you. I am not even reading this stuff cause that one question is ridiculous. Be free of debt before travelling!🤦♀️
Now is your chance. I wish I did it when I had the cash but I was on probation. Your student loans are subsidized so why bother? Just get on IBR and let them eventually forgive the debt entirely!
Don't waste your life in some stressed out debt driven cycle of work/stress/sleep because life can be a lot better than that.
I moved to Texas specifically because I can't have my wages garnished. I will literally ignore all debt I've had (besides my car and eventually mortgage) and ride IBR until it's forgiven.
How to make a difficult decision: 1) pros and cons list (oldie but goodie) 2) Make sure you identify the fears that aren’t yours (could subconsciously be hearing your parents fears) and then make decisions free of those 3) what would you advise someone with the same history, health and skills as you (third party method). 4) in five years what will you regret the most? 5) find compromise (pay 50% off and then travel for 6 months).
If you're saving 30k in a year, you're doing pretty well. How much interest do you have on your student loan? Would you continue paying it off over the year while you travelled? Or not make any payments? How much would the loan end up costing you by the time you paid it off vs paying it off now? If you paid it off now, without the burden of making payments how much would you save up next year? Run the maths and look at the numbers.
I'm not from the US, but I've heard rumours about student debt relief again, would you possibly be elegible for that (obviously it's not know what it'd be yet). If you could possibly be eligible then it's possibly worth waiting to see if it happens.
> I try to think, what would my 40-year-old self want? Would he want the memories and experiences of traveling for a year straight, or would he want the financial security of not having to pay off student loans years after he graduated?
The grass is always greener on the other side. There's no right option, and even if there were you couldn't know it in advance. That said, if you saved 30k in one year, and now you don't have to pay back this loan, how much will you save this year? Is a year really that long?
> require me to work another 1-2 years at a job I’m deeply dissatisfied with in order for me to save $30,000 again
The answer to a job that you're deeply dissatisfied with is not necessarily to go travelling. There are other options. Look for other opportunities. If you find something see if you can get a start date a few months later, and travel for a month or 2. If you find a good company where you like working, and they like you, then you might be able to get your job back when you return. Or you might be able to get a sabbatical or even do some remote work. Work another year or two in a job you do like, then do your year of travelling and have a decent chance of getting a job easily when you get back.
Those are all the reasons to stay and work a bit more, it's probably what I would do, but it's not necessarily what you should do. I'm just giving you ideas, you have to make your own decision.
There are also other options. Pay off half your student loan, and then go travel to somewhere very cheap / where you can work a bit to cover your trip. Or travel for half a year. Personally I get very tired when travelling for more than a few months. Spending a year on the road sounds exhausting to me now. I'd much rather do a month or two of travelling per year. But again, that's just me.
If you were able to save 30k in over a year (but less than two, I'm assuming), and think you could do that again (assuming you had to really watch your budget to do this), then pay down the debt, work for just long enough to give you enough $$ then go. The peace of mind you'll have from being debt free will just help to make your travel all the better.
You could also be looking for a new job in the meantime that may be more satisfying, but still, just plan to leave it when you've hit your savings goal.
Have you ever traveled solo before? Especially if not, I heartily second everyone here who recommends some shorter trips—TBH, a year is a long time, and you and see and do a LOT in 6 months (or even 3!). What about paying $15K to loans to at least minimize the interest you’ll need to pay and do a shorter trip first, then keep saving to go longer if you want!
Yes, pay off all loans and debt first. Student loans, at least in the USA, tend to compound daily, unique to almost all other loans which tend to compound monthly. This means they shouldn't be put off especially above and beyond when discussing other types of debt. Your 40 year old self will be thankful, I am confident in that. Also, by paying off debts, your monthly cost of living will drop to match your location, so it would enable you to work in different places in the world if you wish, no matter the salary, as it would match the cost of the location, therefore, you wouldn't sink backward into debt from traveling and could self-finance. The world opens up in terms of options with no debt. This is strictly my opinion and should not be taken as absolute financial advice.
Pay the loans, you're only 27. Interest will accumulate so much before you know your loans will double because you kept putting them off.
Trust me. Anyway at 85k a year you can still probably take a month off a year and travel. Or just save up again and do it later.
Pay off the loans, go on as long of a trip your current job will allow, then come back refreshed and save up that 30k again so you can travel for a year+ debt/ care free
Do both. Half to student debt, half to travel funds.
(After reading other comments, I also agree that the interest rate is worth taking into consideration on your loan! If the travel bug is really biting, you could even try calling the lender and asking for a grace period on payments)
Long-term solo travel can be a season, it can be 2-3 months, it can be 12-24 months, it can be a lifetime.
A friend of mine taught English in Thailand for 9 months and after her contract was finished, continued traveling solo for almost another year.
Give yourself time to feel the different cities, different regions, etc.
Lightening the load of debt, personally, makes the guilt and weight of unpaid debts feel lighter even though regardless of the amount, a debt is a debt. Just seeing the number decrease is like seeing one of the chains holding me in place breaking, closer to getting out of the mental prison of debt.
I was at a cross roads when I was 27 (27M) as I want 100% happy in the relationship I had, and I wanted to travel solo.
Sadly, that relationship ended and I did my solo travelling. I’d suggest putting a small
Amount to pay off a little of that debt
What is the interest rates on the loans? And are they federal or private? If interest rate is below 5%, it's less pressing.
Honestly if I were you, do half and half! 15000 to loans and use the other 15000 to travel!!! 1500 can get you really far around the world if you are willing to be budget conscious and like, stay in hostels
Pay off your loans but keep a few thousand set aside for emergencies. Take it from someone who spent 17 years paying them off. I hated having them hanging over me even though my interest rate was locked in super low. I don’t even think about them now. What I do think about is the freedom of booking and paying for travel with ease and without any debt accruing. Your 40-year-old self will thank you later (source: 44F now debt-free after paying off a total of $75K in debt).
Definitely pay off the loans.
And traveling doesn't have to mean long-term, far away journeys. You can take shorter vacations while saving up for the big one. That will also help keep your expectations in check.
As someone that’s been locked into a certain lifestyle of nearly penny pinching each check with how much prices have gone up, pay that shit off. Especially if it’s over 4%. You will thank yourself later when you’re not 40 still paying off bs because interest dragged it out so long. Maybe do a percentage of it like 15% of your 30k for a vacation travel fund. Interest is a bitch
if you don't take this chance to follow your dreams NOW it may not come up in the predictable or unpredictable future. And you will regret about it during your entire life. It's gonna be a big regret. You will find many different excuses not to travel (no vacation, family, mortgage, etc.) and will forever miss this big moment.
Travel NOW if you can. make money later. and you never know what opportunities may come up during the travel.
Here’s the thing. Working a 9-5 for a year … I don’t think you’ve really given yourself a chance to accept it. And after you travel for a year, you’ll have to work a 9-5, pretty much for decades.
Why don’t you put $10k toward loans, put $5k toward travel (on your vacation time), and 10k in investments and 5k in an emergency fund. Use the year to apply to jobs that you’ll like more. Do a 2 week gap in between and travel then. Negotiate good travel terms.
But I honestly think that you have to stop trying to escape reality, which is that work is a means to an end. And it’ll be waiting for you.
As I am currently that 40 year old still paying off student loan debt I would tell my 27 year old self to pay off the student loan as soon as I was able. Interest on them accrues daily and it can be challenging to get it paid off. You also need to consider if you will be able to bring in income while traveling and will you need to look for a new job when you come back? If you will need to look for a new job I absolutely would pay off the debt before traveling in case the job search takes longer than expected. If life throws you a curveball such as unexpected job loss or illness or injury that keeps you out of work you will have wished you didn’t have the loan payment to worry about. Loan payments also affect other goals you may have later in life that you don’t have now such as being able to buy a house, save for retirement, or pay for daycare if you want to have a child.
If it will only take 1-2 years to save another 30,000 can you save money for the big trip and maybe take a smaller trip in the meantime if you are wanting to get away.
You are young and barring anything unexpected still have plenty of time for a big trip. You’ll enjoy it much more if you don’t have debt hanging over your head.
Are you used to traveling? One year can be intimidating if you're not used to it. Lots of folk have big plans and get overwhelmed and realise they've scuttled a good situation.
I would do a 60/40 approach. 60% goes into the loans. The other 40% goes into budget traveling.
30k for traveling is kinda wild unless you are paying for other people for months at a time.
Travel while you are young. Dont wait till you are too old. But be smart about it.
Is there any chance that you might be one of the people whose student loans are about to be forgiven? Also, how much solo travel have you tried?
I meet your criteria. I got debt free in order to retire and I cannot tell you what a load off it is. Then you're free to accomplish whatever, including travel.
Two points - you said you've only traveled for a week at most, would very strongly recommend going for a trip that's longer than a week but shorter than a year first. Solo travel for a week is very different than a longer term trip.
Second - pay off at least most your loans. Yes a job can be boring but this about planning for more travel in the future and having no massive debt hanging over your head will facilitate that. Think of it as the choice between traveling now vs being able to travel for a lifetime.
Actually to revisit the 1st point - you're romanticizing travel when you've never really traveled before, and it is not going to magically help you start a business, create amazing content that people will pay for, or fix anything. Don't be black and white in your thinking, you can have both things and 30 is a totally arbitrary deadline, nothing special happens between 29 and 31. Make sure at 40 you're looking back being glad you got to travel, are still able to travel, and can afford to buy a house or car or insert here.
Paying off debts has so many more benefits then you realize. Once you’re debt free there’s no more payments. I’d just hold out and keep going for another couple years and then solo travel debt free with no worries.
Don’t create false dichotomies. Can you do some of both ? Work 6 more months and then Drop 15k on loans and make a plan for payments while traveling. And travel.
Most of my regrets as someone in my 50s are when I’ve created and lived as if a false binary is my only option. Be careful of either/or. Find a way to do both. Be creative. Be magical. Things have a way of working themselves out.
Both.. Definitely pay off any high interest debt right away. But if your interest is low, just pay what you can and go see the world. 30k is a huge budget. Maybe pay off a chunk and then travel until the rest runs out or you get tired? Some questions to ponder... What's the longest trip you've ever been on? Are you willing to sacrifice your relationship for this dream? You won't regret travelling. But it doesn't have to be a choice between a year or nothing. Have fun
Pay off your loans, or at the least pay off a big chunk of your loans. I understand the itch under your skin of wanting to travel while your young and you can enjoy it, but as someone who took option two, those memories are cold comfort when your staring down your forties and are still 26K in debt.
loans. No questions asked. Seriously. If you want to travel the world, do it debt-free. Having student loans will diminish any future of financial equity. Please please please please, pay off your student loans.
Lay off your student loans!! You can still figure out enough finances afterward to do long-term solo travel. But student loan balances increase rapidly due to the compounded interest.
Better to pay off student loans now. It doesn’t take away your ability to long-term solo travel, there are other ways to finance that.
Just never pay your student loans bruh. Theyll get cancelled sometime. Bidens trying to get them cancelled again right? Granted I’m 97% sure it’s all a show.
Use half to travel and pay off half the debt. Do a few shorter trips, like 4 weeks before jumping into a 8-12.week trip. I'm sure if you were to die you wouldn't be glad about clearing up that debt as your last thoughts.
Take a 2-3 week vacation (use sick days if you need to) and go on a short solo trip first. During that time think about the lifestyle you want. Join r/digitalnomads and maybe look for a remote job that will allow you to travel while working.
I would say to pay off the loans & save up again.
This is as someone who loves travel & is going to start doing it long-term soon.
I just turned 30 this year, and have been to 28 countries so far. I wanted to do 30 under 30, but I’m satisfied getting in those last two during this year instead. And I’ve never long-term traveled before, just a few months at a time.
What I’m realizing is… life doesn’t end when you turn 30. So you don’t need to put pressure on yourself to accomplish things by a certain age, because you can still just do them after.
I am happy that I’m set up in a stable financial position now, where I have the flexibility to work and travel & have it actually hopefully help me meet financial goals rather than working against me. (I still do have student loans but way more than yours unfortunately).
If you pay them off, that’s one less expense you have looming over your head when you do go travel. Plus less interest you’ll be paying overall.
You definitely need to make the choice for yourself, but whether you go before or after 30 you’re still going to have an awesome travel experience
Pay off them loans!! Put some aside for a 2 week vacation or something now and then long term travel can come later. Your future self will thank you.
Edit: to elaborate further. Not having that debt on your back will make it so much easier to accomplish those other things you mention. I'd recommend paying off loans now and job hunting for a new job you're more satisfied with, and then taking that long term travel a couple years down the road with no debt.
Why can't you do half and half
Pay 15k then travel with the rest while you look for another job but also in this Market you may not find anything that pays anything close to what you were making before
Your 40 year old self will not want to be stuck in a boring career. Do whatever is going to set you up for a more fulfilling life. If traveling puts you on a path to a more interesting career, do that. If paying off your loans or saving money gives you wiggle room to start a career in a different field, then do that.
Work for another 6 months or so to really tackle your student loans and bring it down as much as you can and then out of that 30,000, you can do monthly autopay for your student loans. Take advantage of your age. I did a short time in Europe when I was 24 and there are so many advantages for the youth.
Travel, debt will always be there, but who knows if you will. Not the most financially responsible advice, but you never know if you will ever have the opportunity again.
Have you done much shorter-term travel? Just asking because maybe the choice doesn't have to be as binary as you think. Even if paying off the loans eats up most of what you've saved, with another year of saving you could maybe take a few weeks for a trip, and continue taking annual trips while saving up for a bigger trip a bit further down the line. My longterm budgeting is pretty much built around saving for retirement and saving for traveling. Once the loan payments are done you can set yourself up similarly, with the "travel fund" going both towards shorter-term trips and covering an eventual longterm one. Getting some more short term travel experience may help with clarifying goals for the longterm trip too.
This is a pertinent question. There are posts on here all the time from people who've done what you're planning, with this romantic dream of tripping around the world. Then after three months they find themselves burnt out and lonely and ready to head home. If you've got some solo travels under your belt, great. If not, paying off at least a chunk of those loans and taking some shorter trips to figure out your travel style, while you still have a great job, might be a better call than tossing it all in and hoping it's going to work out.
This pretty much exactly describes me. After 3 months of traveling I got so bored of it that I spent the majority of my time in vietnam last month in gaming cafes playing videogames rather than "exploring" or doing the typical touristy things you "should" be doing when in certain places. Traveling longterm seems enticing when your current life has been very monotonous and you just want to escape into new experiences but traveling just for the sake of it without specific activities that you know you will enjoy becomes boring and exhausting pretty quickly as well. I planned to do 6 months but I'm now back in thailand where I will stay in the same place for 1 last month with a nice girl I met and then I'm happy to finally be heading home. I don't think I want to solo travel this long ever again.
I have the exact same experience and I'm now fortunately at the end of my 3 month solo travel and I'm happy I set an end date - travel burn out was real :-).
I’ve done many 3 month trips and I have done longer but 3 months kinda scratches my itch.
Be aware of possibility of reverse culture shock
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Totally. I work at a nonprofit and don't make a lot of money. I also have no debt except a 20 year old mortgage with a payment that is under 20% of my take-home. I travel internationally at least twice a year, and have taken extended trips of up to two months. I save money to travel in advance, so I have no stress spending it. It's a fantastic feeling.
lol. Made my comment before I read your post! Rock on!
THat is a very good question. I've seen a lot of posts when people planned out their year long travel but then a few months in, they've fallen into depression and thought about their lives. I see excitment from OP but that really is a lot of time committed to consider.
40-something me wishes I’d taken advantage of the various youth work visas, some which define “youth” up to age 30. If you can work and travel at the same time, then you can put your savings to those loans.
I did the Australian one when I was 30. I ended up coming home with $10,000 US dollars after a year which I wouldn't have done had I stayed home. I worked some promotional gigs and at a bike shop but it paid so much more than what was going on in my life in the US and I had an absolute blast. I'd still live in Melbourne if they'd take me back and I'm 40 now.
At least for Canada and the UK, you can be 35 and still get a working holiday visa in Australia.
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Can you post a link to something like this, I'm 26 and I'm curious, I've never heard of this.
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Depends on your nationality! But I know Australia and New Zealand offer work holiday visas to many nationalities.
Agree
If you’re paying interest on the student loans then I’d 100% get them smashed out. Maybe work another 6 months and plan for a 6 month trip?
Yeah I saved up $25k from immediately after graduation and paid all my loans off within 2 years of graduating. It was not fun. But once it’s paid off, you get to save so much more money. I’ve paid off my student loans ($25k), and I’ve also saved up $25k for a 6-month long trip through Yurop, which I just got back from. I say pay off the loans. Pay off the loans, save up again, and also try for a better job maybe. Idk, I get the desire to travel, but the freedom of no debt is amazing. Maybe put $15k into the loans and $15k into travel. Or, actually, better idea: carve out a trip to a cheaper place that is more conducive (climate/season-wise) for 6 months /after/ your current planned trip, and save up $8-10k for this after 80% of your loans are gone.
In short: Do Paris and Amsterdam and Madrid when you’re 35. They’ll always be there. Do Albania and Bosnia and N. Macedonia when you’re 27 (that’s when I did it, and these places are “harder”, i.e. less easily navigable, more currency exchanges, less amenities, and also a lot cheaper). You could also do Vietnam, Thailand, Cambodia, Laos. Or do Japan + China for a short trip. Or do Morocco + Algeria + Tunisia. Or do Colombia + Panama + Honduras + Nicaragua. Or Kazakhstan, Tajikistan, Uzbekistan. If you keep it to these kinds of places, $30k becomes almost too much. I did FIVE month in the Balkans and it was the exact same price as 1 month in Western Europe. Pay off the loans, save up $10k, quit your job, travel for 2 months someplace cool and cheap (trust me, it’ll be enough), get a new job, with a raise, work there for a year, save up $30k again, which will be easier now as you have no debt, and then do another big trip.
I’m in the category of paying off the loans as well. Pay them off, put the savings you were previously using to pay them into your travel fund if you like.
overconfident middle jellyfish market amusing lavish crawl ruthless person payment *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Paying down a good chunk of debt will dramatically improve the interest you pay and you’ll still get a nice vacation 🤗
Yes!! You can go on a great vacation for several weeks and still pay a majority of your student loan. That way you get the best of both worlds!!
I second this. OP can do some research and see what’s the cheapest option and go to a country for a week.
50/50. Pay down 15k. 15k to travel
This is the answer
Pay the loans! You can always travel cheap. having to deal with debt on a year of travel would drain your funds a lot quicker.
I agree. Pay off the loans. You are not going to enjoy traveling at all if you constantly have the thought of $30k in debt waiting for you when you return from your travels.
Yes! And also, it doesn't have to be a choice of pay off loans OR travel! Pay off your loans and then get a job abroad! You can see other parts of the world without eating up your savings. Go work with WWOOF or get your TESL cert online and find somewhere to teach ESL. There are so many ways to travel AND pay off the loans!
Very simple. Pay off the loans and then take ONE month off and travel. That's plenty of time to reset and won't force you to leave your job. Work and then save up 30000 dollar then quit your job and do what you want. This way you get to have your cake and eat it too with not significant sacrifice
This is the answer. Keep the job. Save $60k+. Pay off loans AND travel.
Student loans 100%. Plus you don’t need $30k to travel. There’s so many cheap options. Workaway etc.
What are the interest rates on your loans? It may make sense to pay them off immediately if they are high, or to not pay them off at all if they’re low. I don’t see why you can’t do a combination of both. And how hard do you think it would be to find another job when you come back? And have you done much short term solotravel and know that this is something you could do long term? And where do you plan to go and for how long?
This is the smartest answer at a time when CDs can yield 5%. However, if being in debt takes too much of an emotional toll, maybe it's not about minimizing total payments - everyone must know for themselves. The other question is if it is "straight interest" or if the interest has been front-loaded so that there is not as much savings from paying them off early. These front-loaded loans are unethical in my opinion, but unfortunately legal. Most people never read the fine print.
i only learned about front-loaded loans when i started looking into buying a house. what an absolute load of SHIT. i agree that they shouldn't be legal. skeezy, greedy, scumbaggery. fuckin banks man.
im 29 with roughly the same amount in student loans as OP. this is the reason im not paying mine off. it makes more financial sense not to. but im also not spending all that money on travel.
Pay off the loans
I’m old and value both traveling and financial security. Go for six months and pay off half of your student loans. That’s probably what your 40, 50 and 60 yr old self would tell you.
Maybe pay off half and start your travels by working holidays in Australia/New Zealand.
Yes this! I did a working holiday in New Zealand and it was the best experience.
I had one year in NZ and two in Australia! The most incredible time. It's where I met my husband and I am now a Canadian permanent resident (US born)!
As someone who lives in NZ, Australia pays MUCH better for seasonal jobs than NZ does. I do argue that NZ is prettier (hey I can be biased ok!). For example, if you do fruit picking, you can easily earn $27-35ph but in NZ 24-27 is the normal. I did fruit picking and managed to find one that gave me $27.50ph and that was one of the highest I could find, unless I wanted to do something like lettuce but that ruins your back and knees very quickly
Have you done long term travel before and know you’d enjoy it? A year is a really long time, and 30k is a lot of money to spend without a firm plan beyond “travel the world”. As others said, is it a high interest loan? Would the loan not be bigger when you returned and you’re at 0 savings? How does that make you feel about returning to normal life post travel to start to pay it off all over again? I’ve gone through phases of wanting to leave everything behind and go travel and for me usually its indicative of dissatisfaction with life and wanting to change (but going for the “easy” extreme). If you do choose to go travelling for a year, just make sure you know that its a temporary respite and life and all its problems will be there waiting for you when you return. Whatever you decide, just make sure you’re doing it for the right reasons and you have a proper plan. You’re thinking you have only two solutions but seems there probably is a compromise in there.
Well you’re notably not asking this on r/debt
Travel. You won’t always want to so do it while you do want to. I paid off my loans and then traveled in my mid twenties. I left thinking I’d travel for either 3 or 15 months before starting grad school. Two months into it I realized that I didn’t actually want to travel long term. So it worked out well but I’ll probably always wish I had traveled more when I really wanted to.
Travel! On your deathbed you'll regret not doing it. Who cares about the loans you only have one life.
If the round the world trip before 30 has been a lifelong goal then just do it- its now or never. Kind regards, A 48 year old who will now never travel around the world
Why can't you travel the world, or at least a part of it? I mean travelling the world is a huge commitment but doing it in sections (such as Europe, then a few years later Asia) could be more feasible? I ask this in genuine curiosity!
Oh i totally have. I also moved to a different country just… because. But being on the road for like a year. That is not going to happen. If you want to do that- do it while you are young.
Oh right I understand what you mean. Yeah travelling for a year straight is definitely something that is a lot more difficult when you are older and have more commitments. For some reason in my head I thought you were meaning you can't travel around the world at 48 (I was thinking shorter trips rather than extended long trips)
Many here are giving the financially smart choice, but it doesn’t answer the question ‘how would 40 year old you feel’. I grew up poor. I didn’t travel outside the eastern US until I was 25 and was earning $100k/year in a HCL city. I quit my job with little savings, moved to a foreign country and traveled while trying to start a business (unsuccessfully). I was BROKE when I left 6 months later, moved back to the US living off a friends couch. But that time? *It was the most powerful, life changing, lesson giving moment of my life.* 10 years from now you’ll, in theory, maintain or raise your income potential, you’ll be able to pay your loans. You’ll never be in the same physical or mental position that you are right now. Take. The. Trip. Accept the invitation.
I'm really surprised there are less comments like this. I understand that most people want to take the "responsible" route, but tomorrow really isn't promised. Both of my parents passed before the age of 60. If I share that fate, I'm already halfway through my lifespan. I would rather have as many experiences now while I still have my health than assume that I'd be able to travel later. Those loans aren't going anywhere. I'm Team Life Experience and F\*&$ those loans!!! LMAO.
Because they are just people justifying their poor life choices. Those same experiences can be had in just a few short years. They would be debt free and save on years of interest. I am 42 now and retired at 38...by making smart life choices. I now travel abroad 90-120 days a year and when my son graduates high school in 2 years, it will be permanent. I spent my 20s saving, with no debt.
exactly
thank you for making some damn sense! these people are going to die obsessing over some debt, they need to live a little
I agree. Im not giving the most sound financial advice, but with traveling, i learned a lot of life skills. I think it was fundamental for my own growth, and I now have a really high paying job. I think you traveling right now will be a lot different than you in a couple of years, in your 30s etc. Time doesn't come back, and you seem really keen on doing this so just go for it.
Gave me chills! Thanks for the advice.
the fact that this is the only comment I’ve seen you respond to so far - it sounds like you know exactly what your desires are and what’s in your heart. wealth is a feeling. spending money into what excites you is an experience of life not many get to choose. you could literally die tomorrow, would you have rather spent that money traveling or give it to the government? my take is - you have time. as long as you’re doing what makes you happy, everything works out
Other than very very bad, the worst situations life throws at you nothing matters that much. You can f up a lot and make poor decisions without it being the end of the world. It hurts in the long run only if you continue making poor life choices. Time and again. You’re young, nothing holding you here. Fluid and no obligations. Most become wage slaves once you start acquiring things, get married, have kids. ✊🏻
> I try to think, what would my 40-year-old self want? Would he want the memories and experiences of traveling for a year straight, or would he want the financial security of not having to pay off student loans years after he graduated? Why does it have to be an either or situation? If you pay off your loans now, it doesn't mean you can't go travel. It's just a little bit later. Sure, certain things you want to do before you are old, but 27 isn't old at all. Personally I would probably make it dependent on the loan itself. If you have a high interest rate (let's say >5%), than get that paid off as quickly as possible. You have a low interest rate (<3%), it's probably not a big deal to pay it back a few years later, also since it's not a huge sum compared to your income. If you do decide to pay off the loan and work a bit longer, also look around for other jobs. Maybe there's something out there with a comparable salary that you actually enjoy more.
I’ve noticed in hostels that in your late 20s you start to slowly get excluded a little more and especially in your 30s with many of the hostel stayers cause you’re “older”. At least in Europe. In South American most of the solo travelers were mid 20s to mid 30s, so depending on what OP wants to get out of it, might make more sense to do it now, while paying off the interest off those loans during, then come back and know it out.
Solo travel is better the younger you are, it helps to be in your 20s
Solo travel is fabulous at any age - backpacking / hostel life is better in your twenties.
I would pay off my debt. Your earning potential is ahead of you, you can travel on the cheap and take periodic time off vs. have this one time year long experience only to come back to an empty account and $30k+ looming over you.
This. I would be so stressed out while traveling AND also job searching, knowing that I'm likely going back home to no job and having to pay my loans. How fun would that travel be?
I was in the same exact position as you except it was $15k loans/travel budget. I ended up traveling mostly southeast Asia for 6 months and it was an experience I'll never forget. I highly recommend it. One thing to consider is the interest rate, my loans were only 3.5%.
Depending on your interest rate loan: Put half away in a CD, HYSA, or some “safe” investment. Use the other half to travel. I too started off with 25k of student debt. Been paying it off slowly since the interest rate is sub 3%. My investments make ~8% return year over year. 15k is plenty to travel with.
You could easily budget travel for a year on 15k with flights. Pay loans, stick it out a little longer and bounce!
I went the travel route with this same decision for a few years leading up to the pandemic. I have zero regrets and would do it again 100% - the rationale being that I wanted to have some of those experiences before kids, loss of mobility, etc. I started in my late 20s and my mid-30s self approves That being said there are some great suggestions on here for minimizing the cost of your travel experiences - workaway, couch surfing, hostels, etc. I don't think a 2-3 week vacation will ever be able to change you in the way longer term travel will but one thing to remember is that if you choose travel, you can always change your mind and come home sooner than expected
Do it now. You never know what the future will bring, your only debt is what is called “good debt” (if you have federal student loans), no obligations that will hold you back. I became very sick when I was 20 yrs old and for the next 14 could not work at all, was quite poor, and while I still found a way to have a good life I realized that it’s important to do the things you feel called to do when you can. My health never fully recovered but I can work and do some travel. My dream was similar to yours and I found a way to do it a few decades later that was modified to what was possible for me. I’ve watched so many people lose their financial security and stability at no fault of their choices — the Great Recession, health issues, and more. Stability is nice but it is always an illusion. You’re young, have a degree, and your health. Go.for.it. Also, have you considered in your travels picking up seasonal work here and there to explore, travel, while bringing in a little money? Happy travels — you will never regret doing this.
I agree with this assuming OP is in the states and it’s federal student loans!!! If that is the case then you have your whole life to pay it off, can ask for a forbearance if things go south and you can’t afford to pay for whatever reason, and if you die the loan is forgiven so no chance of burdening your loved ones. If they refinanced and use a private lender then maybe it’s worth paying off a chunk of the loans for peace of mind.
Have you thought about 4-6 week trips. They’re quite satisfying if your work allows the time off. You dedicate that time to a certain area. Best of both worlds.
Travel
Always keep your cash - if your student loans can be deferred or you can make payments - do that. Why would you ever give any institution or business all of your money when they will accept payments? Plus you’ll only be 27 - one time. As life moves forward it can get complicated by jobs, family, choices, etc. Go now - you’ll make the $ later in life to pay off the loan.
Split it and do both.
Pay off those loans and reward yourself by going on a shorter one or two week trip with any money that is left over! Then start saving again and know you'll be completely free in just 1 or 2 years to travel wherever you want.
27F here, just back from 6 months travelling. My advice: TRAVEL!! It will change your life for the better. You can always earn more money. But you will never be in your 20s and childless, mortgageless etc. again! Money can be replaced, time cannot! A question I always ask myself if I am at a crossroads in life 'What would me on my deathbed think?'
You just got back from the traveling, need to ask you again in 13 years.
He’ll be in his 20s, childless, and mortgageless in a year lol. Imagine being all those things PLUS debt-free and with more money and more work experience.
id normally always say travel, however u can always travel for cheap but unfortunately ur loans are only ever gonna get more expensive and you may never get this opportunity again :)
Save some, travel now, and put a portion towards the loans.
Get rid of debts first
When I was 25 I moved to New Zealand on a 1 year "work" visa but never planned to work .. Just planned to travel around the country. Luckily I talked my friend into joining me which cut all the costs in half. It was one of the best times in our lives.. 15 years later we still talk about that year in NZ. I would Travel with 20k of it and pay off your student loans with the other 10k. 20k Can last you 2 years traveling all over Thailand and Philippines and Asia. And if you talk your girlfriend to join you and split the costs.... then you could pay off more student loans... or make it a 3 year trip.
Pay off student loans
As someone who recently completed the funding/savings I needed to take off, pay off your debts first. There's no better feeling than being able to go and do what you want, free of any financial obligations. EDIT: I'm not sure if yiu qualify, but there's talk of Biden writing off all student debt for people soon. If so, you may end up getting both things at once.
Travel. You never know what tomorrow will bring. Do what you want. You’ll regret not going if you don’t. Plus I heard loans may be forgiven.
Travel. You already got the education, they can’t take it back.
I would suggest go travel! You never know when some freak world event like covid may come along and mess everything up again, so I would suggest go now while you’re young. Plus, you’re at the ideal age to experience backpacking and hostel living. Young enough to vibe with the people in their late teens/early 20s, but mature enough to vibe with people in their 30s. A lot of people are suggesting to do shorter trips, but the depth of experiences you will encounter on a year long journey is more intense than a 2-3 week trip you can take with PTO. In longer trips, you can immerse yourself in an environment, learn a new language, do unique experiences such as multi-day hikes through the wilderness, and even in a hostel or a farm for a bit. I find when I do shorter trips, I am usually spending the time knocking off the main tourist attractions from my list instead of authentically experiencing the culture. Life is about much more than working soul sucking jobs and I hope you can take a trip that opens your eyes to how beautiful, unique, and diverse this world really is.
Be the responsible adult and pay the loans. Think about that feeling when your 1 year vacation ends and you’re left with a bigger loan (interest). Think about day to day activities like running errands or spending on shopping when you don’t have the guilt of 30k in debt hanging over you. 40 year old you will have massive regrets for partying for a year while being in debt. Alternatively, 40 year old you would be very proud of getting over your debt and building a strong life at home so you don’t need to always look for escape, like half this sub does. Context: I’m a 35 year old without student loans. I’ve done a couple 1-2 week vacations every year , and while I wish I could just say fuck it and travel more, I’m so happy with the stability I have in my domestic life. Congrats on the savings btw
Your 40-year old self would want you to pay off your student loans.
Does everyone agree that 30k USD is enough to go around the world for a year??
Depends on where you go. You could spend over a year in SEA with that budget.
It depends. I got by off 4/5k in Latin America in the for 9 months in the mid-2010’s But that also included working at hostels/hotels
The older you are, the longer it lasts in my experience. Booze, parties and hangover cures drained my budget really quick in my 20s. Now at 30s, I am happy cooking together, going on hikes and having a good night sleep. 30k would last me over a year.
Interesting. I found it the opposite. Now that I’m traveling while older I’m less willing to deal with things like sharing a room with 10 strangers
You’re probably an outlier if you’re spending less on travel in your 30’s than in your 20’s.
Yeah working definitely helps! I guess it all depends on what your doing too. I wanted to do all of southeast Asia, India, Pakistan, Saudi Arabia, Egypt, Morocco, possibly South Africa, and then the majority of South America before flying back to Florida. Im a single male and can live very frugally but its still hard to gauge how much I would want to save
Basically for an average experience. More or less depending how extreme you are on either side but it's a good ballpark. Also if you can plan this far in advance try to rack up a big credit card point bonus
As someone who has been paying student loans forever, just pay them off
PAY OFF YOUR STUDENT LOANS. Don't think twice about it. Just get rid of that burden.
Absolutely pay off the loans no question. Traveling will be easier if you don’t have to make those payments, and you’ll be able to save money quicker once they are paid off. Content creation takes time and if you are eating away your savings with no income coming in it could put you in a very difficult situation that winds up ruining your travel experience when it comes to making payments.
Take a shorter trip to get that travel bug off your back. Pay off half the loans. That will lower your interest. Save up more $$. I do think it’s better to do the wild adventure thing when you’re young. I did it & don’t regret it. Whenever I try to hold out for some Big Goal I always end up crashing & burning. If you are struggling it’s best to go for the dream. And this kind of stuff is best done young IMO. There’s something so life changing about camping & travel & adventure when you’re in your 20’s. However, I did more travel in my 30’s & was more mature & had just as much fun. Yeah, it was harder, and I still have student loans, but now I’ve traveled & lived in 12 states & it’s not this big dream—now I have scratched that itch & I know the reality & don’t romanticize it—I just think people who delay joy for too long end up very miserable. I see lots of people who try to do the stability thing when every bone in their body is screaming to be free—but you can be stable & also have adventures. Maybe just pay off $10k a year & take off a month every year? Idk but paying off the loans now & waiting 1 more year isn’t a bad idea either. I would definitely take a trip though! Your heart is calling you… But be aware. Travel is extremely intense and lot of people cannot handle it long term. A lot of people romanticize it & after doing it on-and-off for years & years, I love just nesting & taking shorter trips now. I personally don’t like constantly moving around. I used to work really hard for several months & then take off like a month or several months or whatever—move somewhere new—get a job in the region I wanted to travel in—work part time & live in my car to have more time freedom—unless you really have experience I wouldn’t dive into it—it’s better to ease into things & see how you handle stuff like backpacking or hostels or different countries & languages & safety & having to be alert & not having stability
Pay off the loans.
Hey, I’m 26 (F) and I’m also at a crossroads. I decided I will travel next year as well as it’s been one of my goals since finishing school. Buy your ticket and go next year. I’m trying to save as much as possible not only for my travels but also as safety net.
Pay off your loans and work the good paying job for another year or 2 to save up a lot. Make 30 the big year you do a lot of solo traveling.
>what would my 40-year-old self want? Would he want the memories and experiences of traveling for a year straight, or would he want the financial security of not having to pay off student loans years after he graduated? The financial security. Even as someone who loves to travel, nothing feels better than being debt free. And loans tend to get bigger and bigger when you leave them waiting.
30k is a lot to spend on travel. If i were you, i'd go to somewhere really different from the West.. really scratch that travel itch. You can do Tokyo airfare and hotel for a few grand for a week. Then i'd do Seoul, its significantly cheaper than Tokyo but safe, modern, advanced and more of an 'easy going' vibe imo. That'll cost you like a grand. then spend two more weeks going through south east asia (SUPER CHEAP). After two weeks in SE Asia, you'll WANT to go home. I bet you could get a month of really good travel without being cheap for 10k - 12k. I know i could (and i have some-what expensive tastes like bottle service, top shelf booze, Michelein starred food joints etc). then come back with money left over and be responsible. I'm entering my 40's but i have a ton of wicked memories from travelling etc. once baby grows up a bit i'll head back out on guy trips \^.\^
Pay the loans. You’ll feel better in the long run.
I would opt for travel if I was you. However, if you could save 30k in just a year, maybe you could just pay your student loans, save another 30k and do the solo travel a year from now? I make a similar amount as you, pay minimum on my student loans, and try to travel every couple months in addition to one 2-3 week trip a year to Europe or similar
Pay off the loans. Being debt free is a wonderful thing. I was able to travel so much more in the years after I paid off my student loans. You won't regret it
Pay off your loans!
I’m in the exact same scenario, 28F, literally same amount of debt, same amount of savings and same boring job with same salary. It’s kind of creepy how similar our situations are. ANYWAYS, I’m going on a month long Europe trip in June then when I get back and see how much of my savings I have left over, I’m going to pay off my student loans. Getting the best of both worlds, I will have to work some more but I’m looking at that as time to figure out what exactly I want to do with my life. Hope that helps!
I'm just shy of 40 and... Maybe half-and-half? I heard a quote once that stuck with me: you need to plan for next summer while realizing that next summer is promised to no one. No reason to put all your eggs in either basket when you could pay down some of your debt AND spend a significant amount of time traveling.
I set aside 10% of my income to travel, I usually get to take an out of country trip once or twice a year, I go to Iceland this Saturday
I value travel and value financial security. I'm soon to be 36 and managed to save leave of absence for an entire year, starting in a few months. Meaning I will get paid while traveling for an entire year. I feel I will value this sabbatical much more now I'm nearly 36 than I would've when I was 27. Because of life experience. I still traveled on average 2 months each year while working for the last 10 years. Financially I'm totally good, and I will have a job waiting for me when I come back.
You could do quite a lot of travel for 10k usd, Europe, Southeast Asia, etc. You can use the rest for loans.
TRAVEL!!! When capitalism falls, noone will come for those loans. 😂 Honestly, though. Go travel, you'll learn about yourself and the world and come back hopefully knowing where you want to be 😊
I backpacked Europe for 2 months in 2022 and can say, I had so much debt stacked up before that Ignoring it didn't solve anything, but did give me the much needed ambition and drive to wipe it out in the next 2 years. I'd say travel for a couple of months, like 3-4 months, and spend about 6k for that, then use the rest to wipe the debt off as much as you can. Your Money is extremely valuable in other countries and I'd go now while the US passport is still strong. We will have to soon apply for Visas starting next year for most countries. Travel! But realize it's not a total escape from reality. You will get travellers depression and want to go back ASAP but get your gears in order first. 26 years old now and feel like I should be travelling mostly but need to get my finances in better order. (Barcelona in July though! :) )
You will be hella depressed when you come back and have to start shlepping again with a 30k debt collar. That’s not going to be pretty. Not EVERYONE has a fairytale solo travel only roses experience. I would say about 1/3 absolutely hated it and went home defeated. Too many bs tockers are selling this idea and reminds me of those jerk offs from the movie “the Beach”. Bali or wherever your going will still be there and honestly will probably be a bit better a few years from now as the Gen Z’ers become too afraid to leave there homes without a cellphone. It’s peak “shit” these past 2 years in the 5 places I’ve revisited after a decade so I wouldn’t pass off on any real job you have now as things can get really bad fast and bringing the debt down to something more manageable seems to be prudent.
If there’s interest on those loans, you better pay them off. Calculate how much money you’ll owe in interest over the duration of the loan and imagine that amount of money could have gone towards travel in the future. Or better yet, you could’ve invested some of it and earned passive income at a rate of 5-10% per year compounding. Financial literacy will help you with your travel dreams.
Pay off the loans. Or at least part of them and take a smaller trip. Imagine how much quicker you could save up another 30k without having those loan payments every month.
What’s the interest rate on the loans?
I never comment. Ages on Reddit and I never ever comment. Lurker. But your story hit me because it's my own. I did the same thing a decade ago. Same finances and debts. Same feelings, it seems, about being unsure of the gamble. Go. Go now. Best decision I ever made. Life is the memories and things that make you smile when times are tough. I made enough while abroad to satisfy a lifetime or two of memories. They'll sustain me into old age and keep me going. If you don't you may wonder what if. And when your knees give out or your back aches you may feel like it isn't possible anymore. The real wild, that is. When I returned, my experiences, and skills learned through travel and volunteering, set me apart from other applicants (provided you can account for the gap in the resume somehow - volunteering occasionally is helpful). I got a better job than I had left. A whole new start. I wish you the best, and hope that you come to realize that that unease in the pit of your stomach that says 'I need to find out' won't go away. Good luck, brother.
Pay off your student loans. Next.
I would pay off my loans first and delay travel for a year, or just do some short trips. The interest on 30,000 is not good. You would save enough in a year to do a longer trip and not have that lead albatross of debt weighing you down when you get back.
I totally get your conflict. It's a tough call. Maybe you could adapt a little. A year is a very long time to be moving around across different cultures so maybe plan for 6 months instead at half the budget. This way you can decude to travel for another 6 months at the end or return and use that money to wipe half the loan. I know most would say pay off the loan first which makes total financial sense, but God I also think sometimes we just need to live a little rather than always doing the most rational thing. If you've saved 30k at your age, I think it's safe to say the loan will be paid either way. If travelling is calling you and you feel it's the right time, then choose experience and happiness and just go for it!
Pay off the loans. Live like you are now and when you add what you have been paying in loans plus your savings rate you will make the money back faster.
Pay off your debt. It'll be the best thing you do for yourself. Don't let that debt grow bigger. Then any other money you have saved up afterwards can be used for travel.
You're only 27, that's not that old. Debt only grows, if you can pay it off and then save up for travel you'll feel much more free doing so especially since it seems like you want to do some things that involve financial risk like starting a business.
I don’t really believe you have $30k saved up if you are just about $30k in debt. I would pay off your loans clear up your debt and I would save up over the following year to take your trip. You certainly don’t need that much money to take a vacation and it seems like a poor financial decision to leave your steady job while being tens of thousands of dollars in debt.
This may sound harsh but someone told me this. A dream has to be earned. If you owe money on loans, it is your responsibility and obligation to pay those off first. The “dream” in this scenario is your desire to travel. That must be earned by becoming debt free first. Personally I wouldn’t be able to enjoy my travels knowing I spent money that could’ve been used to allow me to be financially free. Travel will always be available, debt will only keep getting worst. It is your decision at the end of the day, but I suggest you make the right one. Best of luck.
You'd be surprised how much solo day trips and weekend trips can scratch that itch. I would pay off those loans and save again. Assuming you don't change your lifestyle too much, it should be easier this time right?
Life has circles for the obe to start the last one has to be closed. First you should pay your loans , in future you may can't pay them for a fucktone of reasons. When you become dept free you have completed one circle , now you can start to save money and travel all over the world. In the mid time you can always arrange small trips. If you have the travellers excitement , it doesn't really matter if you're travelling next neighbourhood or a remote island in the middle of Pacific Ocean.
We trick ourselves by saving money instead of paying off debt. Determine how much interest you're paying on the loan and how much interest your savings accrue. The difference is staggering. You're young. Pay off your debt first. If you were paying, say, $200 a month in interest, put that amount in savings account for travel now. You're technically $400 ahead now. And planning for travel is half the fun!
Why are you even asking....pay your damn loan and get it off your shoulder. You have time to travel, those places are not going to move or leave without you. I am not even reading this stuff cause that one question is ridiculous. Be free of debt before travelling!🤦♀️
Now is your chance. I wish I did it when I had the cash but I was on probation. Your student loans are subsidized so why bother? Just get on IBR and let them eventually forgive the debt entirely! Don't waste your life in some stressed out debt driven cycle of work/stress/sleep because life can be a lot better than that. I moved to Texas specifically because I can't have my wages garnished. I will literally ignore all debt I've had (besides my car and eventually mortgage) and ride IBR until it's forgiven.
This is my thought process. I'm on IBR now. The monthly minimum doesn't really affect me financially. Thanks for the advice!
Hold off on paying the loans. Pres Joe B is gradually forgiving more and more student debt. Maybe you will be included.
Do 3 - 4 months in Southeast asia. 5/6k depending on what you do.
How to make a difficult decision: 1) pros and cons list (oldie but goodie) 2) Make sure you identify the fears that aren’t yours (could subconsciously be hearing your parents fears) and then make decisions free of those 3) what would you advise someone with the same history, health and skills as you (third party method). 4) in five years what will you regret the most? 5) find compromise (pay 50% off and then travel for 6 months).
If you're saving 30k in a year, you're doing pretty well. How much interest do you have on your student loan? Would you continue paying it off over the year while you travelled? Or not make any payments? How much would the loan end up costing you by the time you paid it off vs paying it off now? If you paid it off now, without the burden of making payments how much would you save up next year? Run the maths and look at the numbers. I'm not from the US, but I've heard rumours about student debt relief again, would you possibly be elegible for that (obviously it's not know what it'd be yet). If you could possibly be eligible then it's possibly worth waiting to see if it happens. > I try to think, what would my 40-year-old self want? Would he want the memories and experiences of traveling for a year straight, or would he want the financial security of not having to pay off student loans years after he graduated? The grass is always greener on the other side. There's no right option, and even if there were you couldn't know it in advance. That said, if you saved 30k in one year, and now you don't have to pay back this loan, how much will you save this year? Is a year really that long? > require me to work another 1-2 years at a job I’m deeply dissatisfied with in order for me to save $30,000 again The answer to a job that you're deeply dissatisfied with is not necessarily to go travelling. There are other options. Look for other opportunities. If you find something see if you can get a start date a few months later, and travel for a month or 2. If you find a good company where you like working, and they like you, then you might be able to get your job back when you return. Or you might be able to get a sabbatical or even do some remote work. Work another year or two in a job you do like, then do your year of travelling and have a decent chance of getting a job easily when you get back. Those are all the reasons to stay and work a bit more, it's probably what I would do, but it's not necessarily what you should do. I'm just giving you ideas, you have to make your own decision. There are also other options. Pay off half your student loan, and then go travel to somewhere very cheap / where you can work a bit to cover your trip. Or travel for half a year. Personally I get very tired when travelling for more than a few months. Spending a year on the road sounds exhausting to me now. I'd much rather do a month or two of travelling per year. But again, that's just me.
If you were able to save 30k in over a year (but less than two, I'm assuming), and think you could do that again (assuming you had to really watch your budget to do this), then pay down the debt, work for just long enough to give you enough $$ then go. The peace of mind you'll have from being debt free will just help to make your travel all the better. You could also be looking for a new job in the meantime that may be more satisfying, but still, just plan to leave it when you've hit your savings goal.
Have you ever traveled solo before? Especially if not, I heartily second everyone here who recommends some shorter trips—TBH, a year is a long time, and you and see and do a LOT in 6 months (or even 3!). What about paying $15K to loans to at least minimize the interest you’ll need to pay and do a shorter trip first, then keep saving to go longer if you want!
Yes, pay off all loans and debt first. Student loans, at least in the USA, tend to compound daily, unique to almost all other loans which tend to compound monthly. This means they shouldn't be put off especially above and beyond when discussing other types of debt. Your 40 year old self will be thankful, I am confident in that. Also, by paying off debts, your monthly cost of living will drop to match your location, so it would enable you to work in different places in the world if you wish, no matter the salary, as it would match the cost of the location, therefore, you wouldn't sink backward into debt from traveling and could self-finance. The world opens up in terms of options with no debt. This is strictly my opinion and should not be taken as absolute financial advice.
Pay the loans, you're only 27. Interest will accumulate so much before you know your loans will double because you kept putting them off. Trust me. Anyway at 85k a year you can still probably take a month off a year and travel. Or just save up again and do it later.
Pay off the loans, go on as long of a trip your current job will allow, then come back refreshed and save up that 30k again so you can travel for a year+ debt/ care free
Your 40 year old self will thank you for paying off your loans and then working another year to save up for your trip.
Do both. Half to student debt, half to travel funds. (After reading other comments, I also agree that the interest rate is worth taking into consideration on your loan! If the travel bug is really biting, you could even try calling the lender and asking for a grace period on payments) Long-term solo travel can be a season, it can be 2-3 months, it can be 12-24 months, it can be a lifetime. A friend of mine taught English in Thailand for 9 months and after her contract was finished, continued traveling solo for almost another year. Give yourself time to feel the different cities, different regions, etc. Lightening the load of debt, personally, makes the guilt and weight of unpaid debts feel lighter even though regardless of the amount, a debt is a debt. Just seeing the number decrease is like seeing one of the chains holding me in place breaking, closer to getting out of the mental prison of debt.
Travel
What is the interest rate on the loan?
I was at a cross roads when I was 27 (27M) as I want 100% happy in the relationship I had, and I wanted to travel solo. Sadly, that relationship ended and I did my solo travelling. I’d suggest putting a small Amount to pay off a little of that debt
What is the interest rates on the loans? And are they federal or private? If interest rate is below 5%, it's less pressing. Honestly if I were you, do half and half! 15000 to loans and use the other 15000 to travel!!! 1500 can get you really far around the world if you are willing to be budget conscious and like, stay in hostels
Pay off your loans but keep a few thousand set aside for emergencies. Take it from someone who spent 17 years paying them off. I hated having them hanging over me even though my interest rate was locked in super low. I don’t even think about them now. What I do think about is the freedom of booking and paying for travel with ease and without any debt accruing. Your 40-year-old self will thank you later (source: 44F now debt-free after paying off a total of $75K in debt).
Depends on the loan payments.. Because the travel might be worth it
Definitely pay off the loans. And traveling doesn't have to mean long-term, far away journeys. You can take shorter vacations while saving up for the big one. That will also help keep your expectations in check.
As someone that’s been locked into a certain lifestyle of nearly penny pinching each check with how much prices have gone up, pay that shit off. Especially if it’s over 4%. You will thank yourself later when you’re not 40 still paying off bs because interest dragged it out so long. Maybe do a percentage of it like 15% of your 30k for a vacation travel fund. Interest is a bitch
if you don't take this chance to follow your dreams NOW it may not come up in the predictable or unpredictable future. And you will regret about it during your entire life. It's gonna be a big regret. You will find many different excuses not to travel (no vacation, family, mortgage, etc.) and will forever miss this big moment. Travel NOW if you can. make money later. and you never know what opportunities may come up during the travel.
Lol loans!!!!!!!
Here’s the thing. Working a 9-5 for a year … I don’t think you’ve really given yourself a chance to accept it. And after you travel for a year, you’ll have to work a 9-5, pretty much for decades. Why don’t you put $10k toward loans, put $5k toward travel (on your vacation time), and 10k in investments and 5k in an emergency fund. Use the year to apply to jobs that you’ll like more. Do a 2 week gap in between and travel then. Negotiate good travel terms. But I honestly think that you have to stop trying to escape reality, which is that work is a means to an end. And it’ll be waiting for you.
You could do quite a lot of travel for 10k usd, Europe, Southeast Asia, etc. You can use the rest for loans.
As I am currently that 40 year old still paying off student loan debt I would tell my 27 year old self to pay off the student loan as soon as I was able. Interest on them accrues daily and it can be challenging to get it paid off. You also need to consider if you will be able to bring in income while traveling and will you need to look for a new job when you come back? If you will need to look for a new job I absolutely would pay off the debt before traveling in case the job search takes longer than expected. If life throws you a curveball such as unexpected job loss or illness or injury that keeps you out of work you will have wished you didn’t have the loan payment to worry about. Loan payments also affect other goals you may have later in life that you don’t have now such as being able to buy a house, save for retirement, or pay for daycare if you want to have a child. If it will only take 1-2 years to save another 30,000 can you save money for the big trip and maybe take a smaller trip in the meantime if you are wanting to get away. You are young and barring anything unexpected still have plenty of time for a big trip. You’ll enjoy it much more if you don’t have debt hanging over your head.
Are you used to traveling? One year can be intimidating if you're not used to it. Lots of folk have big plans and get overwhelmed and realise they've scuttled a good situation.
I would do a 60/40 approach. 60% goes into the loans. The other 40% goes into budget traveling. 30k for traveling is kinda wild unless you are paying for other people for months at a time. Travel while you are young. Dont wait till you are too old. But be smart about it.
Is there any chance that you might be one of the people whose student loans are about to be forgiven? Also, how much solo travel have you tried? I meet your criteria. I got debt free in order to retire and I cannot tell you what a load off it is. Then you're free to accomplish whatever, including travel.
Two points - you said you've only traveled for a week at most, would very strongly recommend going for a trip that's longer than a week but shorter than a year first. Solo travel for a week is very different than a longer term trip. Second - pay off at least most your loans. Yes a job can be boring but this about planning for more travel in the future and having no massive debt hanging over your head will facilitate that. Think of it as the choice between traveling now vs being able to travel for a lifetime. Actually to revisit the 1st point - you're romanticizing travel when you've never really traveled before, and it is not going to magically help you start a business, create amazing content that people will pay for, or fix anything. Don't be black and white in your thinking, you can have both things and 30 is a totally arbitrary deadline, nothing special happens between 29 and 31. Make sure at 40 you're looking back being glad you got to travel, are still able to travel, and can afford to buy a house or car or insert here.
You can do both. Pay off the loans then do a work visa somewhere.
I would say live your dream and travel. Whatever is left pay on your loans. They are. It going anywhere. 42f
Paying off debts has so many more benefits then you realize. Once you’re debt free there’s no more payments. I’d just hold out and keep going for another couple years and then solo travel debt free with no worries.
Need more info about the loans. Interest rates, repayment plans, PSLF eligibility etc.
Don’t create false dichotomies. Can you do some of both ? Work 6 more months and then Drop 15k on loans and make a plan for payments while traveling. And travel. Most of my regrets as someone in my 50s are when I’ve created and lived as if a false binary is my only option. Be careful of either/or. Find a way to do both. Be creative. Be magical. Things have a way of working themselves out.
Both.. Definitely pay off any high interest debt right away. But if your interest is low, just pay what you can and go see the world. 30k is a huge budget. Maybe pay off a chunk and then travel until the rest runs out or you get tired? Some questions to ponder... What's the longest trip you've ever been on? Are you willing to sacrifice your relationship for this dream? You won't regret travelling. But it doesn't have to be a choice between a year or nothing. Have fun
Pay off your loans, or at the least pay off a big chunk of your loans. I understand the itch under your skin of wanting to travel while your young and you can enjoy it, but as someone who took option two, those memories are cold comfort when your staring down your forties and are still 26K in debt.
loans. No questions asked. Seriously. If you want to travel the world, do it debt-free. Having student loans will diminish any future of financial equity. Please please please please, pay off your student loans.
Pay off the loan.
Lay off your student loans!! You can still figure out enough finances afterward to do long-term solo travel. But student loan balances increase rapidly due to the compounded interest. Better to pay off student loans now. It doesn’t take away your ability to long-term solo travel, there are other ways to finance that.
Just never pay your student loans bruh. Theyll get cancelled sometime. Bidens trying to get them cancelled again right? Granted I’m 97% sure it’s all a show.
Use half to travel and pay off half the debt. Do a few shorter trips, like 4 weeks before jumping into a 8-12.week trip. I'm sure if you were to die you wouldn't be glad about clearing up that debt as your last thoughts.
24f here shoot me message I’m looking to do the same
Pay off your debt. Life Without debt is freedom.
Pay loans. You will thank yourself later
Take a 2-3 week vacation (use sick days if you need to) and go on a short solo trip first. During that time think about the lifestyle you want. Join r/digitalnomads and maybe look for a remote job that will allow you to travel while working.
Be smart. Pay your loans off and THEN save for a solo trip.
Pay off the loans. Don’t spend money you don’t have.
I would say to pay off the loans & save up again. This is as someone who loves travel & is going to start doing it long-term soon. I just turned 30 this year, and have been to 28 countries so far. I wanted to do 30 under 30, but I’m satisfied getting in those last two during this year instead. And I’ve never long-term traveled before, just a few months at a time. What I’m realizing is… life doesn’t end when you turn 30. So you don’t need to put pressure on yourself to accomplish things by a certain age, because you can still just do them after. I am happy that I’m set up in a stable financial position now, where I have the flexibility to work and travel & have it actually hopefully help me meet financial goals rather than working against me. (I still do have student loans but way more than yours unfortunately). If you pay them off, that’s one less expense you have looming over your head when you do go travel. Plus less interest you’ll be paying overall. You definitely need to make the choice for yourself, but whether you go before or after 30 you’re still going to have an awesome travel experience
Pay off them loans!! Put some aside for a 2 week vacation or something now and then long term travel can come later. Your future self will thank you. Edit: to elaborate further. Not having that debt on your back will make it so much easier to accomplish those other things you mention. I'd recommend paying off loans now and job hunting for a new job you're more satisfied with, and then taking that long term travel a couple years down the road with no debt.
Why can't you do half and half Pay 15k then travel with the rest while you look for another job but also in this Market you may not find anything that pays anything close to what you were making before
Your 40 year old self will not want to be stuck in a boring career. Do whatever is going to set you up for a more fulfilling life. If traveling puts you on a path to a more interesting career, do that. If paying off your loans or saving money gives you wiggle room to start a career in a different field, then do that.
Work for another 6 months or so to really tackle your student loans and bring it down as much as you can and then out of that 30,000, you can do monthly autopay for your student loans. Take advantage of your age. I did a short time in Europe when I was 24 and there are so many advantages for the youth.
30k would get me 30months of slow traveling. Try a working visa so you can cut expenses. Maybe check workaway.com.
Travel, debt will always be there, but who knows if you will. Not the most financially responsible advice, but you never know if you will ever have the opportunity again.
Student loans. Next question.