Every college graduate is vulnerable to debt. This is because a majority of the students don’t have access to money. Borrowing money through credit cards and other types of loans seems like the only way out when students need money for buying personal stuff such as books, clothes and other things that are of great necessity. However, these debts come to haunt you later in life. The good thing is that there are things you can do to prevent debt from accumulating. Here are tips that can help you avoid debt when you are a college graduate.
1. Budget for Expenses
As a college graduate, you might feel like it’s too early to start monitoring how you spend money. In fact, failure to budget for expenses leads to overspending. What hurts most is that you have no way of knowing what you paid for or bought. When you have a budget, you can always use it when shopping to ensure that you don’t buy stuff that will end up hurting your finances. Research actually shows that most graduates borrow because they don’t know how to prioritize their needs. By the rule of thumb, your expenses should never exceed the money that’s already in hand. In other words, you should leave below your means. Nowadays there are apps that are designed to help you track every single cent that you spend.
2. Start Saving Early
Some graduates assume that they should start saving after securing a good job and working for several years. In fact, saving later in your life works against you. This is because you will not be able to utilize the power of compounding. It’s actually recommended you start saving as little as a dollar. That way, you will not have to borrow money when a rainy day comes your way. To succeed in saving, you need to sacrifice some things. For instance, you can watch movies at home instead of going to the cinema or share rides on Uber and Lyft.
3. Work as an Intern
Don’t wait until you graduate to start working. You can actually balance between studies and work. You can work during the day and then go for evening classes. Besides that, getting a job is not easy. Most companies and businesses don’t put interns in their payrolls. However, there are those that pay. You should, therefore, narrow down to those that are willing to give you at least a few bucks so that you can sustain yourself. The advantage is that you will have something to spare at the end of the week or month. However, make sure you record your conversations when agreeing on such a position so that your employer doesn’t jump ship when it comes to paying for work done. Fortunately, there are discrete recorders that are available at SpyCentre.com.
4. Apply for Scholarships and Grants
Successful companies, especially those that are not for profit, usually offer scholarships and grants every year as a way of giving back to society (popularly known as corporate social responsibility). There are actually some websites that list these grants and scholarships. As a graduate, it’s recommended you apply to as many as you can. Keep in mind that you may not qualify in all of them. The advantage is that you will not be required to pay for any grant or scholarship.
5. Cut Back on Expenses
People usually borrow because they don’t have enough money. Avoiding debt in the first place is better than paying it. You should, therefore, look for ways of reducing your expenses. You should commit to sharing rides on Uber and using coupon codes when shopping for stuff on online stores. You should also opt for used books because they are cheaper than new ones. And that’s not all. You can opt to cook your own meals or eat at the school pavilion because it’s more affordable than eating at a restaurant.
6. Ditch Credit Cards
Credit cards are very tempting. This is because they offer you the money that you already don’t have. However, paying credit card loan can be a pain in the neck when you are a graduate. In fact, even if you have a credit card, you should pay for services and products in cash. This helps in ensuring that you don’t have any accumulated debt at the onset of your career.
