Let's talk finance. Money. Cold hard cash.
It can be an uncomfortable one, we know. But it's important nontheless.
If you're finding the transition from student to fresh graduate a little financially tricky, here are some top tips that could help you along the way:
Create a basic budget... And stick to it.
Make yourself a simple tracker. You could use google sheets for free, or just plain ol’ pen and paper.
Make sure you track all your income, and weight it up against all your expenses. And we don’t mean ‘treat yourself’ expenses. We’re talking rent, bills, transport, food.
Once you’ve done that, then you can see what you’ve got left to play with. But don’t just go blowing it all at once. Make sure you include putting some savings away in your expenses column.
A clear view of your cash flow will help prevent overspending and make your money go further.
Make sure you have an emergency fund
You know the saying - stuff happens.
Maybe your car suddenly breaks down, your boiler kicks it, or something somewhere is leaking.
Those savings you’ve budgeted in your tracker each month? That’s where they’ll come in.
Make sure you’ve got about £200-500 in your ‘emergency’ budget. The more the merrier. Keep it in a separate, easy-to-access savings account, and don’t touch it unless you need to.
It might just save your bacon one day.
Understand and manage any debt early
Student loans are one thing, but credit card debt, overdrafts, and payday loans can spiral - fast.
If you need to borrow any money, know the interest rates. A payday loan can come with an APR of 1,500%. Weigh it up - is it worth the cost?
If you’ve taken a loan, make more than the minimum payments where possible, so you can pay it off ASAP. Remember: these loans can affect your credit score, try not to get caught up in them.
Keep living like a student for a while
Just because you’ve got a job now doesn’t mean you have to eat at a different restaurant every night. Remember the days you could survive off a 40p pack of noodles and a dream?
We’re not saying you have to slum it, just don’t suddenly jump into splashing the cash now you have it. Some of those frugal traits you picked up were good!
Lifestyle creep is real, and once you take a step forward it can be hard to go back. Keep that in mind.
Start building good credit (responsibly)
Your credit score can affect your ability to rent, get a mortgage, or even when applying for certain jobs.
An easy way of building up your score is by opening a basic credit card, and using it for small, regular purchases, that you know you can afford. Pay it off in full each month to build yourself a positive credit history.
Avoid payday loans, and anything that’s buy-now-pay-later. You’ll always end up paying through the nose for it.
We hope you find these tips and tricks useful going forward.
If you’re struggling with debt, there are more places you can go for help. Visit gov.uk/debt-advice for more.