Young people, especially those who are currently in their twenties, still have what could be called a “college/university finance mentality.” It’s this idea that you can just go into debt to get the things you want without really being productive or smart about how you go about getting money.
In the UK, university debt is financed by a government lending service, meaning that the interest rates on the loans are artificially low. What’s more, the money doesn’t even have to be paid back, unless you earn more than £22,000 per year. As a result, many young people spend like mad, not really thinking about what it is going to cost them in the long-run.
The problem is that not managing your money correctly and failing to take advantage of opportunities as they present themselves will take their toll on your finances eventually. Here’s what to do to escape the college/university mentality.
Take Control Of Your Financial Future
If you don’t manage your money, other people will step in and try to manage it for you. Some of the time, these people will have your best interests at heart. But often, they won’t, and they’ll try to send you up the creek without a paddle, so to speak. Mainly we’re talking about credit card companies, personal loan outfits and mortgage sellers who want to put you on a treacherous adjustable mortgage rate.
Rather than leaving your personal finances to the whims of others, take control of them yourself. Start off by tracking your bank account on a monthly basis to make sure that every transaction is accounted for. If you see that a company has jacked up a direct debit without telling you why, cancel it using your online banking or over the telephone and go to a different company.
Take Care Of Your Health
At college or university, you probably didn’t bother all that much with your health. Instead, you stayed up late, chowed down on whatever you wanted and spent all day sitting in the library, rather than moving around. At the time, this was all good fun, but as you’ve gotten older, you’ve started to realise that it’s a bad policy. Being unhealthy makes you less productive and ruins your professional life.
Taking steps to protect your health, however, can only go so far. Sometimes it’s necessary to go a step further and approach a personal injury law firm if you have been hurt. After all, you are your own most productive asset, and if you’re out of action, you can’t make any money. Take injuries seriously, and use them as an opportunity to improve your financial position.
Start An Emergency Fund
Right now, you might not think you’ve got an awful lot of spare cash lying around to pay into a savings account – what with student loan fees, credit card debt payments and rent going out every month. But putting something into an emergency fund every month is an excellent way to help yourself to feel more relaxed. Nothing affects your performance at work more than constant gnawing thoughts about what you’ll do if your next paycheck arrives a day late.
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