Tips for law students to survive the credit crisis

Unless you have been in outer space previewing one of Richard Branson’s space voyages for the last 6 months you couldn’t have helped but hear about the credit crisis in the news and in magazines. It has reverberated around the world, from airlines going bust stranding thousands of passengers to the United States Presidential election being swung into chaos, with John McCain suspending his campaign to attend to the banking credit crisis. This has also coincided with staggering rises in oil, gas and food prices making the economic climate one of the most difficult in decades. In short, world events have shown that the credit crisis affects everyone and law students are no exception. Even in the best of times it’s difficult enough to get by as a law student with fees, textbooks, travel and accommodation to pay never mind the odd night out! However, it is possible to follow some simple tips and plan to avoid becoming a victim of the credit crisis by making the most out of the cash you have available.

Textbooks

Ignorance is cheap, and saving money by not buying recommended textbooks is not a good idea. However that does not mean that you have to spend a fortune on textbooks for every one of your courses. No doubt, the credit crisis has brought about tough times, but things will only get worse in the long term if you scrimp on reading materials. The best tip for saving money in this regard is to get a hold of the handouts for your courses as soon as possible and speak to your lecturers about which textbooks are the most important. Often handouts will list four or five textbooks, some of which will be added ‘luxuries’ with only one being essential. Once you find out which one’s are essential do not rush down to the nearest bookshop and buy it! Save that eagerness for chatting in the library. Instead, have a look on the internet, as chances are a law student from the previous year will have listed their old textbooks on amazon at a fraction of the price. It is also a good tip to take any of your own old textbooks and list them. Although it is nice to build up a collection of law books, to one day exhibit in your office as a big shot lawyer, don’t forget that they date very quickly as the law is changing all the time.

Shopping and Accommodation

Unless you are a first year law student going into halls you will probably be looking to rent accommodation. This is one area where the current credit crisis may actually give you an advantage and get you more bang for your buck. The recent fall in house prices has resulted in a stagnant housing market with more properties being put on the market to rent rather than to be sold. This means that there may be more rental properties in your area to choose from at hopefully better prices. It is important to think about the location of your accommodation and whether it is worth pitching in with friends to get a bigger place and share bills. Ideally you want to be as close to university as possible to give which will save on bus or train fares and give you the greatest chance of making 9am lectures. If you do decide to move in with friends choose them wisely and make sure your expectations are compatible. The last thing you want to do is have a fight with a housemate and have to move out and lose your deposit.

It is also important to plan a weekly shopping budget and in doing so be prepared to downgrade and shop around. The days of shopping for the heavily advertised branded food items are difficult to justify when there are so many cheaper equivalents in budget brand supermarkets. This doesn’t mean that all of your favourite brands have to go but it may be worth considering buying unbranded bread, cereal and other items in order to reduce your shopping bill. This will probably involve downgrading the brands that you grew up being accustomed to in mum and dad’s house but now you are a serious law student and needs must, after all, you can always indulge yourself back at your parents’ house in the holidays.

Nightlife & Clothes

It’s a law student’s prerogative to go out any, if not every, night of the week to party and take advantage of not having a boss to report to at work the next morning. Needless to say it can be especially tempting after receiving your student loan or access to a large overdraft to go out and blow it all with your new found uni friends. Tempting, indeed, but not very wise. The good news is that the credit crisis has not caused banks to close up shop on generous interest free overdraft facilities or reasonable career development loans however in these uncertain times it is worth drawing up a budget. The best thing to do is pay out your big costs like rent and textbooks first and then budget for nights out and clothes. It may be quite boring to contemplate but with all the stress that comes with exams it is worth spending five minutes to plan a budget. The even better news is that student nights are still alive and well with a variety of offers and deals to cater for the most miserly budget so take advantage of them!

Part time work

It is a great idea to get a part time job at a local law firm that is willing to pay for your services. This will provide a little extra cash to play with, give you an insight into the legal profession and hopefully give you an understanding employer who will give you time off when exams come around. It will also be an added bonus on your CV when you graduate and come to look for a job.

And Finally….

By following some of these simple tips you will be able to survive the credit crisis. It is difficult to survive at best of times as a law student on the small grants, student loans and minimum wage part time jobs so with the credit crisis things just got more difficult. But don’t despair because with a little bit of planning you can save a lot of money and leave yourself in a far better financial position after you graduate when you have to pay back student loans!