Tag Archives: future
Futureproofing Your Finances: A Graduate's Guide (Page 1 of 2)
With every passing year, employers place more and more importance on the ‘right’ degree, even for entry-level positions, so it is little wonder that more school leavers than ever before are choosing to continue with Higher Education.
Since the UK government abolished means-tested maintenance grants in 1998 and introduced tuition fees soon afterwards, the cost of getting a degree has increased exponentially, with an alarming proportion of new graduates leaving university tens of thousands of pounds in debt. The future looks bleak for the current generation of graduates. The ‘job for life’ has become the stuff of legend, and state pensions are at risk of being phased out.
It’s easy to put off getting your finances properly on track, especially if you’re working full-time and managing to keep your head above water, but those loans and overdrafts that were so easy to get when you were a fresh-faced eighteen-year-old need to be dealt with now if you want to enjoy a decent lifestyle by the time you are middle-aged.
We’ve identified some of the key things you can do to get on the road to financial freedom as soon as possible.
Make a plan
List your short-term and long term life goals. Do you want to be able to afford a new car or invest in property? Start a business? Get married or have children? Having a rough idea of the direction you want your future to take will provide the framework on which to base many important decisions.
Kill your debts
This one is vital! As long as you owe people money, you will feel like they own you. If you have outstanding student loans, bad credit cards, unpaid bills or similar debts, ignoring them will only make them grow bigger, and if all you can afford to pay is the minimum charge every month, all you will be doing is paying off interest without ever repaying the original loan. It’s important to break out of the cycle of debt, but it can also be a very daunting prospect, especially if you are being harassed by many creditors. If you can’t find enough hours in the day to organise repaying your debts properly, or simply feel you don’t know where to start, it’s worth finding a personal debt management firm to help you get back into the black. As long as you are in debt you will not be able to save any money, which brings us to:
Start Saving Now
We’re not saying that you shouldn’t spend money on consoles, new stereos and so on but at least make sure you put aside 10% of your salary in a savings account for use in future emergencies. We don’t want to sound fatalistic, but there will always be future emergencies!
Cut Day to Day Expenditure
The internet offers hundreds of ways to save on all manner of products and services. There are price comparison websites, sites that collect discount voucher codes that you can use when ordering all manner of things online, from new PCs to take-away pizza. If you find a voucher online that saves you some money, put that money into your savings fund as well. Sites like MoneySavingExpert are dedicated to helping consumers claw back as much money as possible from the corporations.
Financial Aid for Students (Page 1 of 2)
While navigating future dreams of career and success, students are often left bewildered and surprised by the costs of post-secondary education. While we all recognize that college and university degrees can offer opportunities we would otherwise miss, it can be daunting to imagine ourselves spending so much money on them.
Most students find that loans are a necessary reality when pursuing post-secondary attention. Although savings and scholarships will certainly contribute, loans can be a way to invest in the future even when you havent yet found ways to put money away for it. Student loans are competitive and you can find the best choice for you by considering several different options.
There are a few common loan types that you will want to investigate, including federal loans, personal loans, and consolidation loans. And as with any loan, you will need to consider the interest rate as well as loan limits and fees, and especially terms. By understanding terms you will know when it is time to start repaying, and avoid late or missed payments.
Typically interest rates are lower on federal student loans then on personal loans, which are awarded by banks and other lending institutions. Typically personal loans start incurring interest immediately and may require you to make loan repayments immediately, whereas federal loans often allow a term that includes at least the length of your post-secondary program, and perhaps several months after. With the longer term provided by federal loans, you can get some extra time to find a job after school.
Personal loans may also require a cosigner, such as your parent, and may not have the options for deferment and forgiveness that federal loans do. While private loans can be a life-saver when federal loans and other methods are not possible, it is in your best interest to try for federal loans first.
Consolidation loans are typically used when you want to refinance your student loans, either because the minimum payments are too high, or because you can save on interest rates. Keep in mind that consolidating to extend your repayment will create more costs in the end as the interest will continue to accrue. Any gain in interest may not be worthwhile, and for federal loans in particular, you are likely already getting the best rate. Finally, consolidating your federal loans can mean you lose options relating to deferments and forgiveness, so be sure if you go that route you can make your new payments on time, every time.
Dont Make This Mistake
Dont make the mistake of simply missing payments back on your student loans when the time comes. This is called a “default”, and has some severe penalties. If it occurs, your loans may be turned over to a collection agency which can incur court costs and attorney fees you may end up responsible for on top of your loans and interest. Your wages could be garnished, your tax refunds and other government benefits could be intercepted, you wont be eligible for other federal aid, and perhaps most importantly, your credit record will be damaged badly. A bad credit report can prevent you not only from obtaining auto loans, mortgages, and credit cards in the future, it could also result in job applications and rental applications being denied.