Look where that 4 year rail card got me
I’m writing this message from the future. Don’t ask me how I got here, because I don’t know how. Student loans, hardship loans, a never ending temporary overdraft (four year rail card included) and a graduate loan fueled my ten year journey. My destination is possibly yours too.
This isn’t written from a ‘learn from my financial mistakes’ point of view – but it’s a brief tale of financial choices. Often going to university is not only the first time that we experience family freedom, but it’s the first time we have financial freedom.
Budgeting
Budgeting is the first financial smart choice. Make sure that you know when your university fees are due along with other big expenses (rent for example). Know when your loan payments will make it to your bank account to avoid cash flow errors and unnecessary fees that can add up. Make sure that you have a year long plan to account for these fluctuations in your bank balance. Your budget should include your weekly food allowance and don’t think because it’s a budget you can forget about clothing, haircuts and the cost of toothpaste and toilet paper – everything should be included along with reasonable entertainment expenses.
Reasonable Entertainment
The freedom that university gives is one that you will never see again in your lifetime. Maybe you will but from where I’m standing it doesn’t seem like it. I remember the ten pint challenges at our student halls bar and clubbing at least three times during the week and three times at the weekend! Happy days and fun times, but from where I stand now maybe I could have held back a little and stemmed the mounting debt that I accumulated. This mountain of credit card and loan debt seemed to come from nowhere and the bad habits that I developed lead to overspending in the years after college.
Get to work!
Not necessarily by having an evening or weekend job during university, but after you finish your course. Prepare yourself to start work shortly after your done so you can limit the hemorrhaging of money that can happen if you experience an extended period of unemployment after the reality hits that there are no more student loan installments. I travelled after and continued my spending habits. Hopped around cities in Europe. Then took a flight to Korea and taught ESL. Expensive experiences.
Reality
We all have to return to reality sometimes and that’s when we find ourselves 10 years from the day we started university, with a wife and child, three credit cards, two loans and the same overdraft that they enticed us to open with that rail card. The reality is a new journey.
The truth is that I wouldn’t change a thing. But remember that the freedom, fun and extras that you’re experiencing now will catch up with you and you’ll pay for it. Worthwhile? Possibly. But I’m still paying for it.
Choices
If you’re able to moderate your spending then you’ll be in great shape to move into the next stage of your life without it hitting you too hard. The smart financial choices you make now are significant. If you need help with debt management later then there are many services available like the Citizens Advice Bureau and also Debt Free Direct. These services can help you take control of your debt and payments.
Merry Christmas and don’t drink/spend too much this holiday season!
Category: Deals, Featured, Student News
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