It can be easy to forget that there’s life beyond our uni years. For three years – longer, if students are sticking around for further study – it’s like living in a bubble where you’re balancing studies with having a social life.
Managing money for a lot of students involves planning how to make the student loan last through the semester and how to get the most out of any discounts that are up for grabs. And with the recent cost of living crisis making it even trickier to budget during the academic year, it’s likely that the last thing you’re thinking about is your finances after graduation. But it’s worth taking the time to make plans for what happens after you complete your undergrad.
One way to do this is looking at ways to set up a savings pot. While things might be tight, it is possible to save money when university’s over. Here are some tips to help you get started.
Why savings are important
Setting aside savings can be hugely beneficial. They can be a rainy day fund that exists solely to help you out if you need money quickly, for instance if your car breaks down suddenly and you need to get it fixed or replaced.
As well as being great for getting you out of an emergency, savings are great for something special, like travelling with friends after graduation. By taking the time to set aside some savings so that you can see the world, you’re getting to experience other countries and cultures, and this sets you up for your working life.
If a gap year’s not your thing, having money set aside can simply offer you peace of mind. Just knowing that there are funds there should you need them – even if you don’t touch the money for years – can be good for your financial and mental wellbeing. Money worries can negatively affect your mental health, so with money in a separate pot, you can feel secure.
Ways to save
So, how can you save up?
Where to live
If you’re lucky enough to be able to move back to your family home, you might be able to get a job in the field you’ve qualified in or perhaps get a part time role while you build up work experience in the industry that you’re interested in. If you can do this while living with parents, you could set aside the money you earn for savings.
However, it’s not always possible to move back. In that case, see if you can go into a house share, ideally with a few friends who can share the bills and rent with you. This will mean you don’t have to fork out for expensive rent on your own.
Alternatively, look for rooms to let as part of a house share – if possible with bills covered in the monthly rent. This is usually a cheap way of living and puts you in a good position to set aside money each month.
Pay off debts
Clearing debts frees up finances that can go in your savings fund. Student loans are classed as a so-called ‘good debt’. This is because it’s automatically taken out of your salary when it’s over the threshold, so you’re seen as a good debtor who pays off money you’ve borrowed.
However, any overdrafts and credit cards you have are not seen as good, which is why it’s important to look out for any 0% interest offers on credit cards and pay these off as soon as possible to reduce extra fees. By keeping up with repayments, you can build your credit history and credit score, which means you’re more likely to be seen as a good debtor later on.
Know your worth
It can be tempting to go for the first job offer you get or to have a sense of imposter syndrome when getting your first post-grad job, but it’s important to remember what you have to offer and build the confidence to know how to ask for more if you feel you’re being undersold.
Check on sites like Glassdoor to see what the starting salary is for the role you’re interviewing for. Once you’ve bagged the role with the financial compensation that you’re worthy of, you can start saving up.
Life after university is going to be different. By preparing now, you can ensure you’re managing your money in the best way possible.
