American Financial Benefits Center on the Importance of Getting Fun Out of Paychecks
EMERYVILLE, Calif., April 5, 2018 (Newswire.com) - Everyone looks forward to their paycheck. While some individuals may immediately spend some of that hard-earned money on something they’ve had their eye on (a want), others may pay their student loan bill first (a need). While there is plenty of advice out there on how to use a paycheck, it’s important to not leave out fun when allocating those funds. American Financial Benefits Center (AFBC), a document preparation company that assists its clients in navigating and applying for federal repayment plans, reminds student loan borrowers that while they should stay current on their loans and other needs, they should also set some money aside for fun activities or purchases.
“Getting paid can be exciting until you remember the bills that check has to cover,” said Sara Molina, Manager at AFBC. “For some, student loan bills represent a big monthly expense, and seeing that much of a paycheck go toward it can be difficult.”
For some, student loan bills represent a big monthly expense, and seeing that much of a paycheck go toward it can be difficult.
Sara Molina, Manager at AFBC
Countless financial blogs suggest that the first piece of a paycheck should go toward retirement. The best way for many to do that is to enroll in a company-sponsored 401k plan that sets aside a percentage of each paycheck (ideally matched by the company) before the check is disbursed.
Once disbursed, some financial advice may be to split the paycheck between needs such as housing costs and other bills (50 percent), savings and debt payments (20 percent), and wants such as new clothes or furniture (30 percent). While individuals may need to modify the breakdown to suit their own needs, AFBC encourages borrowers to not forget the wants. Individuals needing help with their finances may decide to speak with a financial expert.
Financial stress is a powerful force and can affect physical and mental health. Fun activities, or want purchases, may help in reducing that financial stress. If borrowers feel that their student loan payments prevent them from considering fun activities, they may consider looking into income-driven repayment plans. Such plans calculate payments on income and family size, potentially reducing payments to as low as zero dollars for certain situations.
“Reducing financial stress is really important for daily life,” said Molina. “At AFBC, we hope our members who are in IDRs aren’t weighed down by such stress, and we hope that they feel able to spend some money on fun things that may help them relax.”
About American Financial Benefits Center
American Financial Benefits Center is a document preparation company that helps clients apply for federal student loan repayment plans that fit their personal financial and student loan situation. Through its strict customer service guidelines, the company strives for the highest levels of honesty and integrity.
AFBC is a member of the Association for Student Loan Relief (AFSLR), and each representative on the phone has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).
Contact
To learn more about American Financial Benefits Center, please contact:
American Financial Benefits Center
1900 Powell Street #600
Emeryville, CA 94608
1-800-488-1490
info@afbcenter.com
Source: American Financial Benefits Center