I’ve calculated all my outstanding debt and it stands at – £65,235. This amount is shocking for a 22 year old. I feel ashamed that it’s that high. How could my debt go off the rails so soon after leaving university? Where did it go wrong?
I think the answer is when you don’t have money you have to manage it as best you can but as soon as you get leave university, get your first job and start earning some decent money you get into bad spending habits.
After surviving on beans on toast your first payday feels like all the money in the world. Once you’re working you are flesh blood to the banks, it opens up access to more credit and finance products.
The last thing on your mind is paying it back. Part of the student experience is drinking, partying and letting your hair down. You want to go out partying, meeting girls and travelling on borrowed cash.
The problem is you can run but you can’t hide from your debts, therefore I have committed to becoming debt free. I’m fed up of robbing Peter to pay Paul. I’m tired of been skint, in loads of debt with my money in a mess.
When I discuss money with other people my age the main issue is debt and the inability to save and afford a house. We have to rent private or live back at home because we don’t have the funds and deposit required to take out a mortgage. Others options increase moving in with friends to cut rents or find a cheaper place to rent.
I don’t fancy moving back in with my parents or living with my friends 24/7. That must avoided at all costs. I’ve come to enjoy living alone and enjoy the freedom.
Homeownership for me is a distance dream and a far out nightmare. Even if I did have the money for a house deposit on the practical side it’s probably best to remain renting than buying my own home.
The home is only yours when it’s paid off and that’s at least another 25 years of debt I’d be chained to. I’m not ready to put down roots and get tied down to years of financial commitment. I have no choice but to stay put and keep renting.
Buying a house is one of the biggest purchases and commitments you’ll have to make. You have to be financially and emotionally prepared to purchase a house. It means growing up and been tied down.
When you’re a little kid money doesn’t seem to matter unless you want sweets, a new toy or a trip to the fair ground. When you head of to university you know the debt will build up but you don’t care because you can dream about becoming extremely successful in your career. No worries, you’ll land a cool job with mega pay become a lawyer, doctor, famous actor, scientist, airline pilot or run a multi-million dollar business.
You don’t worry about money or your personal finance at the time. Then reality kicks in and you enter the real world. Only then do you realise you’re not sure where the hell your time and money has gone and your personal finance are in a bad state with nothing really to show for it.
My parents warning me about this. There would tell me to be careful with money and “Save, Save, Save”. The thing is you tend not to listen, somehow thinking you know better and your finances will all workout fine.
When you are a kid you beg your parents for sweets or cry because they won’t buy you a new toy robot. Your loving caring parents explain that sweets rot your teeth and you can’t have them before your dinner. They explain that the toy you want is a waste of money because you hardly play with the last toy robot they bought you two months ago.
Your wise old parents have valid points and are trying to teach you healthy values and give you financial tips. At the time you don’t care or understand so you throw a tantrum.
I think the lessons they tried to teach me back then have finally penetrated my stupid skull.
From here I don’t want to suffer with money troubles and debt problems. Debt holds you back from living your life. What this means is you have to tackle the issue and learn a few personal finance lessons:
Top 7 Financial Tips:
- Teach yourself how to budget.
Create a simply budget and understand where your money is going.
- Don’t buy something you can’t afford.
If it doesn’t work within your current budget don’t buy it.
- Don’t buy something you don’t really need.
How much money do you waste on needless things and impulse buys.
- Long term debt has a cost.
Stop treating your credit card and overdraft as income and a means of monthly financial survival.
- Save more than you spend.
Stash away your cash and save as much of your income as you can.
- Have a back-up emergency fund.
Put some saving put aside for emergencies to avoid running up debt.
- Invest for the future.
Invest and save enough for your old age and retirement.
Take these financial tips seriously and you shouldn’t have too many money worries in your life. Stop scraping by every month and start being proactive will give you the confidence and momentum you need to turn your financial future around.
