Every college graduate is vulnerable to debt. This is because most students don’t have access to money. Borrowing money through credit cards and other loans seems like the only way out when students need cash to buy personal stuff such as books, clothes, and other necessities. 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 as 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 cannot know what you paid for or bought. When you have a budget, you can always use it when shopping to ensure you don’t buy stuff that will hurt your finances. Research 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 already in hand. In other words, you should leave below your means. Nowadays, some apps are designed to help you track every single cent that you spend.
2. Start Saving Early
Some graduates assume 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 need help 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 on their payrolls. However, some pay. You should, therefore, narrow down to those willing to give you at least a few bucks to sustain yourself. The advantage is that you will have something to spare at the end of the week or month. However, record your conversations when agreeing on such a position so that your employer doesn’t jump ship when 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 not for-profit, usually offer scholarships and grants yearly to give back to society (popularly known as corporate social responsibility). Some websites list these grants and scholarships. As a graduate, you should apply to as many as you can. Keep in mind that you may only qualify for some 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 in online stores. You should also opt for used books because they are cheaper than new ones. And that’s not all. You can cook meals or eat at the school pavilion because it’s more affordable than a restaurant.
6. Ditch Credit Cards
Credit cards are very tempting. This is because they offer you the money you already don’t have. However, paying credit card loans can be a pain in the neck when you graduate. In fact, even with a credit card, you should pay for services and products in cash. This helps ensure you don’t have any accumulated debt at the onset of your career.
