Students Using Different Methods to Achieve Financial Independence After College
As summer comes to an end across the country, several recent graduate students enter the market in hopes of land their first jobs and finally becomes financially independent. Naturally, financial independence is far more than finding a job and balancing a check book, it is also about planning for the future and reflecting about one’s goals.
Students across the country seem to be realising this as well, which is why they have started adopting a few novel methods to finally achieve their financial independence.
1. Considering personal loans in order to achieve their most immediate goals: For many students, a personal loan can be a great way to get their dreams started, as it can provide a much needed initial push. However, several students seem to be jumping at the first offers for personal loans that come across them. This is not only a mistake, but a very risky move as well, since many students are harming their financial records since early on, making it a lot harder to recover along the way. That said, a well-chosen personal loan that is used appropriately will yield tremendously positive results along the way.
2. Personal loans as a way to get rid of debt and clean up their credit records: A great number of students incur in debt in order to be able to afford college. Then, upon finishing school they seek for one big personal loan in order to get rid of all the debts they may have. This allows them to not only clean their credit history, but also to organise their finances. What is even more, many students seek the help of their families when it comes to getting a personal loan, that way their financial record will be clean to the eyes of the world.
3. Planning and savings: Upon graduating, many students simply prefer to avoid any kind of loan and instead concentrate on saving money. This is a long term plan for most and requires great discipline, but if executed properly, the rewards in the long term will be substantial. The obvious advantage of own savings against personal loans is that the former implies no debt whatsoever. On the other hand, saving for big goals, like owning your own home or business can take several years.
4. Students have become better at measuring their financial performance: If student have learned anything from the financial crisis that took over the country a few years ago, is that being honest with oneself is the only sure way to measure and control their financial performance. Knowing this, less students have applied for credit cards now than in previous years. Their expenses have also contracted somewhat, although spending in general has become easier to control mainly due to the emergence of expense tracking software and websites that help users control their finances.
5. Use of direct deposit: Many students are increasingly choosing direct deposit as a way to increase their savings. They direct a fixed percentage of their salaries every pay period into a retirement fund, emergency savings or a simple savings account. The good positive aspect about this method is that it is painless for the student, who after a few months will get used to his lower salary. On the other hand, it can take many years to save up a considerable amount if the student is planning on making a big purchase like a home for example.