Budgeting as a student can involve a lot of hard work because you only have access to limited funds. However, things can become even more complicated when you leave university and enter the real world. There is often a period between getting your qualifications and finding employment in which many young people struggle. With that in mind, there are some tips and tricks below that should ensure you’re aware of all the options on the table. Consider each of them before working out which offers the most benefits for you.
Refinance your student loan
Lots of ex-students choose to refinance their loans from the moment they leave university. The boffins from firms like refinancestudent.loan say that is because you accepted the contract a few years ago, and some companies might offer better interest rates today. In most instances, the specialists concerned will pay the old debt and then provide you with a new payment plan with reduced installments. That concept could help some individuals to save up to $200 per month in some instances. It all depends on the size of the existing debt, and the state of the markets when you apply for refinancing. With a bit of luck, that suggestion should help to give you some breathing space while you petition for jobs.
Apply for a new overdraft
Most students have a significant balance on their overdrafts by the time they get their qualifications. However, that doesn’t mean that all borrowing channels are exhausted. In most situations, it’s possible to open a new account with a different bank and use its overdraft facility. If you think that’s a suitable move, use the money to keep your head above water until someone offers you a position at their company. The benefits of overdrafts compared to loans include:
- Not having to make monthly repayments
- Getting lower interest rates on the debt
- Having access to the money instantly
- No extra charges for withdrawing cash
Reduce your monthly outgoings
There are lots of other ways in which new graduates can limit their monthly outgoings and keep as much cash as possible in their bank accounts according to writers from thesimpledollar.com and different domains. Use some common sense to ensure you’re not wasting money on something that is not essential. Many people in that position will:
- Live with their parents for a while
- Cancel mobile phone contracts
- Get rid of that Netflix subscription
- Stop smoking cigarettes
You get the idea, right? Just take a look at your bank statements and then identify some of the ways you could reduce the money you pay out every month.
Now you know how to budget as an ex-student until you score a top job, nothing should stand in your way. Sure, individuals in that position might have to live below the poverty line for a few weeks. However, if you have the right qualifications and a drive to succeed, nothing should stand in your way. Use the tips from this article and then keep your eyes peeled for other strategies that could make your life easier. Onwards and upwards guys!