6 Financial Tips for People Repaying Student Loans

| August 22, 2013
English: Day 3 of the protest Occupy Wall Stre...

English: Day 3 of the protest Occupy Wall Street in Manhattan’s Zuccotti Park. (Photo credit: Wikipedia)

With college behind you, it may feel like you’re ready to take on the world. However, without the right financial knowledge, you may find yourself in over your head when it comes to your finances. Here are six financial tips to help you become a financially independent student loan repayer.

Create a Budget

To prevent yourself from overspending, it is important that you create a monthly budget and stick to it. As part of your budget, you will need to list your total income and then list all of your monthly expenses. You need to account for any irregular expenses such as quarterly insurance premiums or vehicle maintenance costs. If you incur any extra expenses, you should update your budget to show the new changes.

Save for a Rainy Day

One common mistake made by new graduates is that they spend all the money they make. It is important to create an emergency fund to save for a rainy day. You should contribute to your savings account as part of your monthly budget.  Experts recommend that you save at least three to six months of living expenses. If you find yourself facing an unexpected financial emergency without enough savings, consider applying for a CashNetUSA online cash advance.

Establish Your Credit

In order to qualify for low-interest rates on future purchases such as a car or a house, you must have a good credit history. One way to establish credit history is to pay back your credit cards on time. If possible, you should pay the balance off in full each month. However, if you take on too much debt based on your income, it can actually hurt your credit score.

Start Paying on Your College Debt

Many college students try to defer paying on their student loans as long as they can. However, this can lead to paying more interest on their loans in the end. You should create a plan to pay off your student loans as soon as possible. You should also research loan forgiveness programs for certain jobs such as nursing, teaching, and public service.

Plan Ahead for Retirement and Investing

Although you are young, it is never too early to start thinking about investing in your retirement. If your workplace offers retirement plans, you should make sure that you take advantage of contributing to the plan. In addition to retirement, you should look into different investment products such as stocks to help you money grow.

Live Within Your Means

Since you now are making a salary, you may feel like you can buy anything that you want and pay for it later. However, you may find yourself deep into debt if you continue to think this way. It is important that you live within your means especially if you have accumulated student loans or credit card debt while in college. You should focus on paying off your debt and building your savings.

By using these six tips, you will be on your way to leading a finally successful life.

 

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Category: Debt, Family Finances

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