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Managing Your Student Loan
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Managing Your Student Loan

Written by Sam | February 7, 2018

5 top tips for managing your student loan!

When you get a glimpse of that student loan when it hits your bank, most think, let’s go spend it! Mostly probably on going out! However, in order for it to make it last you need to put these rules in place so you don’t end up eating bare pasta while living in a cold home because you can’t afford the heating!

Budget Your Student Loan

You re going to have to budget for each event, shop, night out, a meal that you want to go to. It’s easier if you give yourself a maximum of what you can spend on the event and then it’s up to yourself to not go over it. If you go over it you are going to have to reduce another budget to make up for it. For example, say your maximum on a night out is £40, you spend £60. You will have to minus £20 from the next night out or event you do!

Plan Your Week & Expenses

If you plan your week, this will make it easier. If you plan what you are going to eat when you are going to shop (more in the reduced sections in the evenings), when you are going out and when you will do other things. By planning it cut out the extras that you would get if you didn’t, say if you went shopping without a list, then you buy all the food you fancy, whereas if you plan, then you know exactly what you need and can prepare accordingly. Also if you can only go out one night a week, then you can choose the nights you want to go out on.

Have Some Spare Cash

A float is where you have a minimum amount of cash that you don’t touch. This helps in emergency situations because you always have a backup of money in case anything goes wrong. This means you won’t have to drop into your overdraft to bail you out! The float can be £20 or £50, it also helps if you overspend one time you have a back up to stop you going into your overdraft!

Good Banking

Yes, you read it right. If you prefer to have a student account that allows you to go into your overdraft with fewer penalties then what you can do is, move your money to your main account and transfer a weekly amount into your student one which means that you keep control of what you spend! By doing this it removes the temptation to spend all that money in your account on things that you may not need, but only want! Try and stay away from the temptation of buying what you want ALL the time.

Check Your Account

Don’t be afraid to check your account, this way you will know where you stand! Don’t put it off until the next time you get your student loan or else it will spiral out of control! You will carry on spending and get into the mentality of ‘im already in my overdraft I might as well carry on’. STOP doesn’t get into that mentality because when you graduate you could be thousands into your overdraft and trying to progress with a career with that much debt is going to be hard!

We hope this helps you become financially stable and gives you the independence you want to live life to the full as a student!

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