How To Graduate Without Debt
It is no secret that college is normally synonymous with debt but here are simple tips on how to graduate without destroying your credit score:
- 1. Create a spending plan: Habits are hard to break, so even if your cash intake is minimal now, it’s important to figure out how you’re currently going to dispense it so you get into the habit of staying on course with a plan.
2. Save something: Even if it is only 50 cents to a dollar a day, change can add up. Set aside an amount daily that you can commit to so that you become accustomed to delegating a portion of your income to a savings account.
3. Establish an emergency fund: Mommy and daddy might not always be financially secure enough to economically help you out, should an emergency arise, or simply logistics might prevent them from getting you the money you need instantly. Set up the account now or as soon as possible so that your mind is at ease during that potentially very stressful moment.
4. Acquire a credit card: Bottom line is, eventually you will need a solid credit score to establish yourself come graduation. But ensure that you are only making a few purchases that you are able to pay off immediately or within the grace period as to avoid paying interest, while still being able to build credit.
5. Understand profitable debt and destructive debt: Getting into debt to invest in real estate or a business that tend to appreciate, along with student loans that potentially with ensure a higher paycheck will become returns on your investments. Debt on credit cards to buy trendy clothes to impress your boss, vacations to enjoy your college years, expensive meals because “eating is a necessity” are all just excuses to justify your destructive prioritizing.
6. Don’t always buy required textbooks: Borrowing or splitting books with friends, buying used textbooks, downloading copies for free offline, and asking other students who took the class previously are all ways to save on textbooks. These savings can add up to hundreds of dollars a year in your wallet.
7. Asking about student discounts: Asking and researching student discounts can also save you hundreds of dollars a year at some places like movie theatres, Broadway shows, restaurants, clothing, shoe and electronic retailers, that offer student discounts. Googling and typing “student discounts” into the search box of topics on Twitter are two easy ways to see some local and national specials.
8. Increase your income: Don’t forget to research freelance opportunities online and paid internships, just because your experience isn’t quite up to par doesn’t mean that companies will necessarily undervalue your contributions.
9. Friends don’t let friends get into debt: Surround yourself with friends and family that will support you in your smart prioritizing and not discourage you when you opt to skip the club for a night in order to save some money. In a couple years, only you will be held accountable for your financial decisions, so make sure that your company is sharing in your values and understanding of your financial planning.
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