Fresh out of university – finding your financial feet

Written by Chelsea Potter on 18 July 2016

Most people will associate students with debt and financial struggles – with limited income and bills to pay; living away from the home for the first time can prove a challenge. But what about when university finishes, graduates are often overlooked but they face their own challenges when it comes to avoiding the possibility of debt. Straight out of university, graduates are often burdened with the task of finding a job, overdrafts and loans that all of a sudden are adding charges, and the dilemma of how to fund the commute/resources for a new job before they receive their first pay cheque.

It can be a difficult time for new graduates. Whereas students could rely on student loans and frozen interest rates, new graduates face a financial struggle while they try to find their feet. For today’s blog post we’ve put together some money tips that will help graduates stay out of debt and keep on top of their finances. 

  1. Move back home. This only has to be a short term plan but moving back home post university allows you to get your finances in order and save up for a rent deposit. It can be difficult to fund a house immediately after your studies finish if you haven’t previously been working. Moving back home will give you the time you need to find your feet.
  2. Get your deposit back from your landlord. Rent deposits can be a sizeable amount so make sure you don’t let yours go to waste. Pick up a cheap tin of paint from your local hardware store and touch up any issues in your student home. You’ll be glad to have a few pounds in the pocket and this deposit could be necessary if you need to find a new place immediately for work.
  3. Create a savings account. After struggling with limited income at university it can feel such a relief when you take home your first proper pay cheque. However while it might seem tempting to treat yourself and spend your hard earned funds, open a savings account and put aside a small percentage each month.
  4. Start repaying your overdraft. An overdraft might seem like free money as a student but once your bank account changes, charges start to accrue. Graduate accounts often help you to reduce your overdraft by temporarily delaying interest charges so make the most of this period and start to repay what you owe. Getting rid of your overdraft early will feel like a weight has been lifted.
  5. Create a budget. Put together a list of your expenditures so you know what outgoings you have to cater for and when. This will help you keep in control of your finances and avoid you falling short.
  6. Put yourself on the electoral register. Whenever anyone starts on their finance journey their lack of credit history can lower their credit score. One quick and easy thing you can do to build up your credit score is to register for the electoral roll.

Filed under Money Management

This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago.

2 thoughts on “Fresh out of university – finding your financial feet”

  • Tony

    October 25, 2018 at 3:15 pm

    Just had a letter from a firm after £12000 I had a personal loan over 12 year ago I’ve not made no payments or had any corresponding with anyone for last 12years and a letter comes through door today do I owe the money

    • Jane Clack

      October 29, 2018 at 11:46 am

      Yes, you owe the money. However, if you live in England or Wales and have not made a payment to this debt for 6 years since the last payment became due or acknowledged it in writing and the creditor has not gone for court action – which they can do by writing to the last address they held for you, then the debt is statute barred. This means they cannot chase you for it through the courts. If you have always been at the same address and never received a county court claim form there then they cannot have applied but if they have – even if it were for the last known address they had for you, then if there is a county court judgment, even if it has fallen off your credit report, they can go back to court to enforce it and explain they could not enforce it before as they did not have your current address.

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