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How bad of an idea is it to take out a student loan to get me out of my situation?

Ask the Bitches: I Want to Move Out, but I Can’t Afford It. How Bad Would It Be to Take out Student Loans to Cover It?

We have a question today from a Tumblr follower. If you don’t follow us on Tumblr, you should! Piggy is one of the Tumblr Deep Ones. She’s been on the platform since its infancy, and she answers tons of reader questions.

Like this one!

I need to move out, but I don’t have any money actually saved up. I do have a job that can cover my monthly costs and still have some left over. So I was wondering just how bad of an idea it is to take out a student loan to get me out of my situation and then immediately work on paying it off.

Ah. A very relatable dilemma.

For most people (and families), housing is the largest item in their budget. Young people spend, on average, a quarter of their income on housing—more than any other age group. Which means that saving money on housing can have an enormous positive impact on your finances. Especially when you’re young.

But is it ever a good idea to strategically spend a lot more than you have to on housing? Spoiler alert: yes, it absolutely can be.

Let’s get into it!

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As broke as you are right now, ignoring a perfectly good retirement fund is a terrible idea.

If You Don’t Use Your 401k You’re Losing Money in 3 Different Ways

Too lazy to set up your 401k? Too afraid of the paperwork? Feel like you’d rather use that money on stuff right now? Well buck up, son, because I’m about to tell you why you can’t afford not to use your retirement plan.

A 401k (or 403b if you work for a nonprofit) is your basic retirement fund. You set it up with your employer so they can take money directly out of your paycheck and squirrel it safely away for you to use when you’re terrorizing orderlies in the nursing home. That way you can focus on maintaining your record as Wheelchair Drag Race Champion of Shady Hills Retirement Community and not get distracted by petty financial concerns.

Pictured here: retirement goals.

But the trick is you have to opt into your 401k. It’s not forced on you, and it doesn’t happen automatically. So against your best interest, you can actually choose to just not save for retirement. And as broke as you are right now, ignoring a perfectly good retirement fund is a terrible idea.

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