Irrespective of whether it’s your first freshers’ week or your third, there’s always a temptation to spend. Numerous things will tempt you to spend your dollars (which are either sent by your parents or earned through some part-time job). As it is, student loan debt has reached an alarming level due to which too many students are striving hard to get out of their debt burden. Unless you’re proactive enough and take your finances into your own hands, you will never learn how to take care of your money, even after you graduate from college.
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The lackluster habit of students with regards to their finances is not only a growing concern among the young generation but it is also leaving their parents in a state of constant worry. If you want to put an end to this in 2016, you should master the art of saving money and spending money. Here are some expert tips on money that you should take into account if you’re a student who’s just graduated from your college.
Tip #1: Negotiate the offer of your first job with your employer
Yes, it’s natural that you may feel uncomfortable while negotiating about your first job with the employer but you should also know at the same time that most employers expect the same from the candidates. More than 85% of the employers are willing or rather able to pay more than what they initially offer the students, as per research in 2015. Even though the employer may answer you in the negative, the gut that you took to ask such a question is admirable and praiseworthy enough.
Tip #2: Try to live on the budget of a college student for few more years
By now, you must have already mastered the art of living like a poor student. Hence why not live below your means for a few more years so that you can make a strong financial footing and then start spending? If you restrain yourself from expensive shopping and meals for a few years now, you can be sure of having enough money for building the financial foundation which you may need. It is only by saving money that you can build an emergency fund and also your retirement account.
Tip #3: Know the living expenses in the city you’ve moved to
If you’re moving to a new city, you should firstly utilize a cost of living calculator to check out the expenses which you can predict for housing, commutation, grocery shopping, and all the other things. Use those estimates to devise a realistic budget and make sure you consider that when you negotiate your salary.
Tip #4: Start understanding and researching on student loans
Would you be able to answer these questions on your student loan debt? What kinds of debt do you have, federal or private? Which is your loan servicing company? What are the rates that you’re paying on your student loans? Remember that your answers have an impact on the forgiveness programs and the repayment plans which you will be eligible for shortly. If your parents have been handling all these payments, make sure you take things into your own hands so that you don’t have to repent later.
Tip #5: Repay the student loan interest rate that you’ve already accrued
Most student loan servicing companies offer you a 6 month grace period between when you have to start making your payments and when you graduate from college. Unless you have federal Perkins loans, interest will have been accruing since you were in school. This interest will be added over to your balance after your grace period. Make sure you pay off the accrued interest before the due date of your first payment.
Students are the most vulnerable section of our society when it comes to making financial blunders. Hence they need to take control over their finances so that they don’t incur high-interest debt which spoils their credit score and mars their dreams of buying a new home or getting a good apartment shortly.