We always complained to our parents when we were younger “don’t treat me like a child!” Now we are on our own, and the last thing you want to do is seek financial help from your parents. You value your independence, and that includes knowing how to stay out of debt and being financially secure. Below are some helpful tips to keep you on track.
Avoid Student Loan Debt
Starting out in the real world may involve going to college, and you might have to apply for student loans. One of the best tips is go to community college first and get a very high GPA. Then, you can use this GPA to get a transfer scholarship into the university of your choice. You can also get free grants for the undergraduate duration. Most schools offer student employment. This is a great way to earn extra money while remaining on campus. Also, the experience will look great on a resume!
Credit Card Debt
Avoiding credit card debt can be hard, especially when you’re right out of school. Credit card offers are very tempting, but the end result is usually disastrous. Don’t fall into the allure of applying for credit cards. Try your best to live within a tight budget. If you find yourself with no other option, then a credit card that is set with a low limit may be the best alternative. Request that the company only give you $500 credit limit. This will not be as difficult to pay off if you should max it out.
Do You Really Need a Car?
Having a car in most cities is a necessity. But with it comes the expense of maintenance, registration, insurance, etc. Large cities usually have reliable forms of public transportation, i.e. bus, subway, the metro. Take advantage of the savings of not owning a car or the added expense of a car loan.
Your Job Matters
Not everyone has the luxury of getting the job they want. This is especially true if you aren’t experienced, educated, or skilled in a particular area. However, many large chain companies offer employee discounts, and this may be a lifesaver for those who don’t have extra income to spare. For example, try applying at the grocery store for a big savings on food. Also, look for employers who offer benefits like health insurance. That is a valuable savings in not only premiums, but should you need medical treatment, you will have coverage.
It’s important to prioritize your needs and constantly look for ways to stay clear of debt. You may end up saving a lot of money if you can just stick to the plan throughout your life. However, when people start to earn a lot more money, they often forget how hard it was to stay out of debt in the first place, so it’s best to revisit you budget.
Andrew Greene is a freelance writer and blogs for debtmanagement.org.uk where you can get relief from debt through debt management.