When it comes to money, there are a few situations that are easy to fall into. We’ve pulled together some of the most typical scenarios that can arise, and how best to avoid them.
1. Spending all your money on payday
When your student loan comes in, you might feel rich, but it’s easy to forget that all that money is meant to cover your rent, bills and living costs for the next three months. So before you buy all the clothes in Topshop and get generous with rounds at the pub, remember that you will still need to eat in six weeks’ time.
2. Doing without a budget
We know budgeting isn’t the most exciting of activities, but it really is the best way to make the most of your money. Read our post on creating a budget for all our tips, and then get geeky and set yourself up a spreadsheet. You can thank us later.
3. Applying for expensive credit
When times are tough, credit cards, store cards and payday loans can seem like the only way out. However, there is always a better way to deal with your finances – these options are expensive to pay back and repayment schedules can be inflexible. If you are feeling the pinch, come in and talk to us first – we are here to help.
4. Opening a second bank account
Student bank accounts often come with an overdraft, which is a great safety net. However, if you’ve used up your overdraft, it is not a great idea to open a second account, just to apply for another overdraft. All you are doing is building up more debt to pay off later. If you find yourself relying on your overdraft, come and have a chat with us so we can help.
N.B Many banks will not offer a second overdraft to students if they already have one with their first account
5. Running a car
For some students, a car is essential. But if you live near the University, and don’t have children to ferry about or placements to get to, you will save so much money by making do without. Not only are insurance and tax huge outlays, petrol and maintenance will continuously chip away at your money. Besides, the university offers a free or subsidized bus service between campuses, as well as the town centre, and walking is good for you!
Have you got any advice for avoiding sticky situations? Let us know and they might be featured on the blog.
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