Is your bank account feeling a little unhealthy? Especially with all those hopeful summer plans ahead that, unfortunately, cost a lot. Well we’re here to help.
Here are seven things you NEED to know about money as a graduate.
1. Take the credit
Knowing your credit rating – and how to build it – is crucial to your financial future. Most people think that because you haven’t had any non-student debt in the past you don’t have to worry. Wrong.
Start by taking out a credit card and using it occasionally for purchases, but making sure you pay it off in full every month. This means you’ll be seen as a responsible borrower and more likely to get a mortgage or loan when the time comes.
2. It’s not just rent
Having your own place means you’re going to need a lot of money, a LOT. Maybe you expect to live a little more extravagantly now you’ve got your fancy new graduate job, but there’s more than just rent and bills to worry about now.
Council tax, rent up front and extra-heavy deposit charges will all hit you now you’re out on your own. So be choosy, and check out the agreement thoroughly first.
3. Taxes, taxes and more taxes
It’s important to know who, what and why somebody is taking a hefty chunk out of your paycheck each month. Read up on tax policy and how much you should be spending here.
4. Be a discount diva
So student discounts are still for students, but don’t let that stop you getting in on the cut price action. Use vouchers sites like Quidco.com and Save the Graduate‘s deals section to bag a load of great bargains that’ll put a little change back in your pocket.
5. How to manage your loan repayments like a pro
Student loans are the best deal you’ll ever get in your life – you only start paying back when you earn a decent amount (£21,000 if you started your studies after 2012, and £17,355 before), and you only pay a percentage on money over that threshold.
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So don’t pay it all off in one lump sum, and just let the gradual account leekage sink in, you’ll barely notice it! Here’s some more information that’s useful to know.
6. Budget bonanza
Just because you’ll have more money than when you were a student, it doesn’t mean you should lose all sanity and hit the shops like never before. No, it’s still important to budget, and more important than ever to put some money away for future expenses, like buying a house?
BillGuard is a great app that helps you decide how much you need to spend each month. It’s worth a download, and it’s free too!