Being a student is perhaps one of the most financially pressing times in your life, but that doesn’t mean that things have to be all doom and gloom. Before beginning your educational journey, it is important to take some time to plan out your finances and ensure that once your time at university is over, you are not left in so much debt that your newfound career is simply a way of paying this back.
In this article, we are going to share some handy tips for staying on top of your finances during your time as a student and how using tools such as NowLoan.co.uk can be of huge benefit.
Stay On Top Of Your Credit Score
We have all been guilty, at one time or another of letting our credit score get away from us, but this can prove very detrimental to your finances. By staying aware of your credit score and everything on your credit report, no matter how bad it may be, you can work towards maintaining or improving it. If you bury your head in the sand when it comes to your credit rating, you will never be able to better it.
There are plenty of useful tools and even mobile phone apps for the student of 2020 meaning that monitoring your credit score has never been easier. All it takes is checking your report once a month and implementing any changes, you will soon see your score skyrocket and this will put you in an advantageous place once your studies are over.
Set A Monthly Budget
Most people are familiar with the image of the student eating noodles out of a tub with plastic cutlery because they don’t have enough money for a decent meal-but this certainly does not have to be the case. The problem is that a lot of students, who are just starting out in the adult world, find it difficult to manage their money and make it last. The addition of a simple budget can put you in full control of your money and give you the peace of mind that you will have enough to last each month.
Think about what things are essential for each month-food, utility bills, clothing, etc and make these a priority. It is wise to pay for these at the start of each month so that you know they are dealt with. Whatever money you have left can then be split and a certain amount allocated for each week to be spent on ‘luxuries’ such as nights out, cinema trips, etc.
Keep Track Of Your Spending
One great way of staying in a superior financial position is to keep track of EVERYTHING that you are spending, and this couldn’t be more important than in 2020. With easy access to internet shopping and the use of the contactless card, it is easier than ever to overspend without realising. This is why keeping a record of every penny you spend can help you to stay out of debt and in control.
You can use a system as simple as a notebook and pen, and write down, to the penny, what you have spent each day. This is not only great for avoiding overspending but is also excellent in helping you to assess what unnecessary items you are purchasing.
Save For A Rainy Day
In the case of most students, there isn’t a lot of room for huge savings but as the saying goes ‘every little bit of help.’ Putting away even the smallest amount of money each month can prove extremely useful if you ever find yourself in an emergency.
There are two great options for saving, you could put away a set amount each month and tie this in with your monthly budget, or you might simply put away your spare change. It may not sound a lot but over time, pocket change can build up into a substantial sum. The most important thing is to be disciplined and keep your savings somewhere that you do not have easy access to either a bank account for which you do not have the card for or a locked safe for which you do not have the key or code. Consolidate Debts
It’s not uncommon for students to find themselves in debt, besides student loans there might be credit cards, car finance, and payday loans. If you are struggling with a large number of outgoings each month, why not consider getting a loan to consolidate all your debts into one? You can find guaranteed loans, which are a great option for students, especially those with bad credit, over on the NowLoan website. This super handy tool can assist you in comparing loans to find the best option for your personal needs, putting you in a much healthier financial position, not to mention helping boost your credit rating.
Set A Long Term Financial Goal
At this moment in time, you are likely focusing on your education and enjoying your life, however, the future will come around sooner than you think. Coupled in with saving, a long term financial goal can give you a clearer idea of what you are aiming for. It doesn’t need to be over-ambitious like owning your own home with no mortgage (although there’s no reason not to reach for the stars) but it could be something as simple as “I will boost my credit score by 100 points in the next 12 months.) This will give you something to aim for and will motivate you to stick to your more short term goals.
If you are becoming a student in 2020, it is so important to enter into this phase of your life with a healthy attitude towards your finances. There are plenty of financial goals that you can set as a way of ensuring you keep on top of your cash-flow and stay out of debt. Whilst these short term goals such as the use of Nowloan to help with making an informed decision on the right loan or you or saving can be very beneficial, it is also important to think about your long term goals as well.