Downsize Your Living When Entering The Real World

by Broke Grad on March 6, 2012

People often say that one’s life in college exists in a bubble and is wholly dissimilar from the real world. This is certainly often the case as far as financial considerations are concerned. Most college students don’t have mortgages, insurance payments, and a family to feed. What they do have is a quality of life that encourages free spending.

If your parents are footing the college bill, you probably won’t think twice about eating every night in the expensive dining hall or paying a bit more for an off-campus apartment. If your parents aren’t helping out at all, you probably will consider a costly night of bar-hopping to be just a drop in the bucket when compared to all your student loans. Either way you likely won’t feel too compelled to reduce your expenses and live more frugally.

Graduation can change all that. Suddenly, you will realize that your spending needs to be accounted for and that your budget needs to find room for numerous real-world expenses. You’ll hopefully have a job and an income, but you probably won’t make as much as you’d like – and, don’t forget, you still need to pay off all your student loans. The transition is understandably a difficult one to make.

When money is tight and loans are high in the post-grad world, it’s important to get out of the “college bubble” mindset and learn to downsize your life so as to avoid irresponsible spending and greater debt loads in the future. Here are a few suggestions:

Live small. A benefit of being a college grad is that there are few things in your life that would require you to have a larger or more expensive living space. You don’t have substantial amounts of furniture or a family to shelter. You don’t have ties to a particular neighborhood or a mortgage on a house. With all this in mind, there’s no reason why you can’t sacrifice some space and save some money. And, if you do have a large number of possessions, you can probably get better rental rates at a self storage facility.

Minimize your spending outside the home. Graduates that can’t shed their college lifestyle have a habit of going out regularly, eating at restaurants and frequenting bars, and unsurprisingly spending a good deal of money in the process. You can avoid these expenses by thinking carefully before buying something that will not be used in your home.

Use cash. People who rack up credit card debit after graduation are often those who had a campus card or a university ID upon which they made food and book purchases as a student. The sense that you’re dealing with “fake money” while in college often persists into the real world as far as credit card use is concerned, on both conscious and unconscious levels. For this reason, going through the extra hassle of carrying cash instead of credit may be a smart decision for the first few post-college years.

Following these suggestions can help you shed the college mindset and start saving more money. While there are many ways to cut expenses, it is important that the recent graduate target those areas where unscrupulous spending was acceptable or even encouraged during his college life. The faster these areas see reduced spending, the faster you can find yourself on firmer financial footing and in greater control over your future.

This guest post is by Samantha Peters, a blogger who enjoys writing about ways for college and grad students to maximize their money by downsizing their life after graduating.

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The best part of college life is the ability to taste financial freedom. When you’re a student in college, it may seem that it is impossible to pay more than the minimum monthly payments on your credit cards. However, if you’re living on a fixed income where you’re earning through allowances or from a part-time job, you have to be careful so that you may save enough money and build a rainy day fund from which you can repay your credit card debts when you’re going through a credit crunch.

As the interest rates on the credit cards are outrageously high, you have to make sure that you pay more than minimum monthly payments in order get rid of debt as soon as possible. Despite taking all the efforts to get rid of debt, if you still incur revolving debt, you should get help from a credit card debt consolidation company.

How can you benefit by getting help from a credit card debt consolidation company?

The biggest issue that the college students face while repaying the debts is the fact that they have to split their payments among multiple credit card servicing companies. They have to remember multiple due dates, and this is probably the reason that they tend to forget the dates and start defaulting. Shortage of funds is certainly another reason of defaulting on the credit card payments. Consolidating credit card debt may take various forms but whichever option you choose, you’ll tend to benefit in some common ways.

  • The interest rates will be lowered on the credit card accounts.
  • The monthly payments are revised and the repayment term altered to assist the debtor to repay with ease.
  • You can waive off all the late fees and the penalties so that you can lower the monthly payments.

Choosing the best credit card debt consolidation company

There are many debt consolidation companies in the market that are waiting to offer their services to the student borrowers and unless you choose the best among them, you may not benefit in the best possible way.

  • Always check whether or not the company is registered with the BBB or the Better Business Bureau so that you may be able to know the authenticity of the company.
  • Go through the consumer complaints and the reviews so that you may know the quality of the services provided by the respective company.
  • The credit card debt consolidation company that you choose should offer you free debt counseling so that they can assess your basic financial state before offering you with any kind of help.

Therefore, when you’re someone who is still in college but has amassed a huge amount of credit card debt, you should get help from a credit card debt consolidation company so that you can repay your debts with ease and thereby lead a happy life. Stop using your credit cards further until you become free of debt.

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