The article is by Jonathan Matthews, who is a qualified debt advisor in the United Kingdom.
Students tend to get overly excited when they receive their initial loan instalment. It is, after all, the biggest lump sum they have ever handled in their lives. Without any previous experience of budgeting, they tend to spend too much, too soon. Research has shown that most deplete their funds a month before the next instalment cycle which translates to some desperate times. There are even a few who lose everything on the first night after gambling it away. Fortunately, it’s never too late to seek help and there are plenty of ways to get it.
Qualified Debt Advisor for Students
Financial smart is required to get through university. It isn’t enough for students to master their lessons in class. They also have to learn important life lessons such as creating a sensible budget, spending within their means, and saving money for emergencies. These will prove extremely useful later on after they graduate. If they can develop self-control, then there will be no problems with having a lump sum on their hands. It would help if they could set up separate accounts for loan instalments and regular payments. Experts also agree that students should avoid credit cards as this increases their risk of getting trapped by a debt company.
When it comes to budgeting, students must list down their usual expenses every month. Essential items such as rent, utilities, food, travel, school fees and the like should be separately computed. Savings should be automatically deducted every month as well. This will serve as the emergency fund in case of instalment delays and unforeseen events. People should only indulge in non-essential items if there is money left after the aforementioned matters have been taken care of. The usual problem is that students tend to approach it the other way around, spending recklessly on the things they want without considering if they will be anything left for those they need.
Students are lucky in that a lot of establishments offer discounts just for them. Take transport services like trains, for example. Students can usually pay a lower rate if they show their ID. The savings can really add up especially if they tend to go back home on a weekly basis. Sometimes these discounts are not advertised so take the initiative to ask the relevant authorities. There are also plenty of coupons and codes on the Web that bargain hunters can take advantage of. These can lead to great deals on clothing, food and more.
Lastly, students must not solely rely on loan instalments. Having multiple sources of cash will protect them from disruptive events and provide additional funds for miscellaneous expenses. This can be accomplished by getting a job that can fit the class schedule. Private study and recreation time should also be factored in. Many students work as library assistants, tutors and other jobs that offer flexible shifts. Some use their entrepreneurial skills to start a business or engage in direct selling. It is all a matter of knowing what you can do and finding what personally works for you.
By: Jonathan Matthews
Jonathan Matthews has over ten years’ experience working as a senior debt advisor for some of the most prominent debt companies in Great Britain. He has helped many families get out of debt and now likes blogging his views and expertise to share the knowledge has gained over the years.
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