Smart money management advice for college students
Your college is the time when you are exposed to a wide social set, so it’s natural for your spending habits and saving habits to draw a lot from your peers. However, the smartest individuals are those who grasp information about basics of savings, smart financial management principles, and golden rules of money management when there’s time on their side. And the perfect time for you to learn all this is when you are in your higher education, managing with monthly pocket money, or earning small amounts from part time works, competition prize moneys, freelancing, etc.
Here is some money management that will serve you well
• Limit repetitive expenses – Rather than trying hard to find one time discounts, research hard to limit expenses on things that stay for long term. For instance, go for a mobile network plan that’s the best value for money, choose a budget rental accommodation, find the most affordable commutation option, etc.
• Stay away from credit – It’s natural to fall prey to the option of buying now and paying later, but that’s unhealthy for your financial position. Only use credit for purchases that can help you build skills, create an asset, etc. Do not spend excessively on expensive clothes and expensive dinners unless you have saved the required amount for the expenses. It’s never the best start when you begin earning from your job having to pay off credit card bills.
• Build and follow short term financial goals – When you’re in college, it’s important to develop the habit of setting short term goals, such as saving Rs. 5000 in 3 months, paying your last semester’s college fees yourself, etc. This teaches you how to stay focused and meet your goal by smart financial planning.
Adopt these proven effective savings tips
• Open a bank account at the earliest – When a bank visits your college and offers to open a bank account for you, take the opportunity. A bank account is what you need for all the important saving choices you make when you join your job after college.
• Record your expenses – You can’t control what you don’t know. So, keep a record of all your expenses for a month, and then analyze as to where you are spending the most and can limit expenses.
• Read about money management – Get a basic starter’s guide for money management and read in your free time as it will broaden your perspective of how financial management works. Red mwww.collegeraja.com/articles