How to Tackle Financial Problems as a New Graduate Entering a Job?

When starting your first job, spending freely on new clothes, gadgets, entertainment, and more is tempting. However, without budgeting, your spending can easily exceed earnings. Tracking every penny spent and allocating funds wisely prevents overspending. A £500 monthly budget for food, transport, and leisure is reasonable for a £2,000 income.

As a new earner, saving feels hard, but even £200 monthly can build security. Saving helps handle surprise costs like medical bills or car repairs. It also aids in achieving future goals like home down payments. Without savings, you may resort to high-interest payday loans when unexpected costs hit. Even saving £50 from each paycheck makes a difference. After one year, £1,200 is set aside for a rainy day.

If finances feel stretched as a young graduate, expensive loans seem tempting. However, loans from payday lenders or loan sharks can lead to debt spirals through huge interest rates. A £500 payday loan can soon become a £2,000 burden. However, you can get no guarantor loans from direct lenders that offer affordable repayment terms to those with low credit scores. Their low APR rates help responsibly bridge income gaps.

Make a Budget

A budget helps track where money comes and goes each month. This avoids overspending. Write down income, such as monthly salary or other money earned. Then list regular costs for rent, transport, food and more. Compare income and expenditures. If spending more than earned, reduce expenses.

1.  List Income

You can note all the pay from the main job, extra work and gifts. Example monthly income:

• Job = £1,800
• Tutoring = £150
• Birthday money = £100

2.  List Costs

Typical monthly costs:

• Rent + utilities = £500
• Transit pass = £80
• Groceries = £240
• Eating out = £100
• Mobile phone = £40

Find Any Job

Taking any job helps pay bills as a new grad. Work in retail, food service or manual labour provides steady pay. These jobs often pay at least minimum wage, such as £9.50 per hour. Working 30 hours weekly at £9.50 per hour pays about £1,200 monthly. This covers typical costs like £500 rent and £150 food. Any job brings valuable experience, too!

1.  Part-Time

Part-time work fits with university schedules or other duties. Jobs in childcare, tutoring, or elderly care offer part-time jobs that pay £10-15 hourly. Just 15 hours weekly at £12 per hour earns £180. This helps cover phone, transit and other bills. Skills also grow in fields like healthcare support.

2.  Internships

Internships don’t always pay but provide training and connections. Monthly costs need covering during unpaid intern stints. Seek government allowances like the jobseeker’s allowance, worth about £260 monthly. Or find weekend restaurant work paying £100 weekly. Savings also help replace lost earnings during beneficial but unpaid intern roles.

3.  Handle Student Loans

Reach out to the company that is providing the loan. You can ask questions to understand repayment options. A lender can explain payment amounts, timelines and interest rates. For example, Sally owes £15,000 in student loan debt at 5% interest. Her lender shares she’ll pay £150 monthly over a 10-year term.

Your loan companies can offer different payment arrangements. You can choose wisely to save money on interest fees. There are common options like standard, graduated and income-based plans. With income plans, earn more to repay faster. Graduating slowly increases payments. The standard plan keeps consistent payments.

Refinancing means getting a new loan to pay off old ones for better rates or timelines. Those with very bad credit can qualify for very bad credit loans with no guarantor and no broker up to £5,000,low interest and predictable payment schedules.

4.  Save on Living Costs

You can move back with your family after finishing university, which is a great way to save cash. There is no need to pay high monthly rent and bills. Extra money earned can pay off loans faster, too. Maybe give parents £100-£200 monthly to help with costs. But overall, this allows savings for more each month.

Another idea is getting roommates to share a flat. You can split rent 3 ways on a £1,500 monthly 3-bedroom, which makes it just £500 per person. It is more affordable and builds friendships. Plus, saving on rent leaves extra money to budget for goals like travel, a car, or a future home.

You can examine spending to cut unnecessary costs. For example, bring lunch to work instead of buying out to save £5 daily. That’s £100 every month. You can use extra to pay down debt or build emergency savings.

Also, limit impulse purchases. Before buying anything over your budget, wait one day to consider if it’s needed. Your small daily saving choices keep more cash in hand rather than overspending.

5.  Keep Learning

Lots of sites like FutureLearn and edX offer free online classes. Topics range from coding to psychology. You can spend an hour or two weekly working through materials to build knowledge. It looks great on CVs as well to show the drive. For example, take a 6-week beginner’s digital marketing course. You can use skills right away by helping charities boost web traffic.

See what capabilities employers want and work on those. For instance, data analysis and budgeting project management are critical. Take relevant skills courses or online tutorials to get certifications. Include these on LinkedIn and resumes. Maybe do basic Excel training and then analyse financial datasets. This experience can lead to finance roles.

You can attend local industry events to expand connections. Try to look for free seminars, talks and conferences to join. You can exchange contact info and take colleagues for coffee afterwards. You can even list on sites like LinkedIn introducing yourself.

Conclusion

You can focus on spending on essentials like housing, utilities, and groceries first. Try to create an emergency fund in a high-interest savings account for unexpected costs before purchasing wants. Build this to 3 months’ salary over time. Needs must be met before buying gadgets, clothes or holidays.

You can chart every pound, separating needs from wants, and increasing skills help graduates adapt financially after university. You can create realistic budgets, keep basic costs low and better career prospects. Building strong money habits from the start prevents future money stress.