Published by FrankNez Team.
Students are the second category of people, after retirees, who have the hardest time getting and managing money effectively. At the same time, young people have many more tools and opportunities to improve their financial situation.
After mastering those tools and gaining the right knowledge you will learn to prioritize smartly.
For example, it’s a better idea to buy college paper and spend saved time on something that will bring you much more financial value like working on your startup, having a work shift, having a financial course, learning to invest, etc.
The main argument of students as to why it makes no sense for them to plan their personal finances is that they have no finances at all.
In this article, we want to talk about what financial habits you should instill in yourself from the very beginning of your independent life, even if you don’t have much money yet.
Quite often the phrase “poor student” is used during conversations about money. How to avoid the stereotypical stigma and live a life of well-being even during the difficult years of higher education – further in the material.
After leaving the parental home, many students try to adapt financial behavior and habits from childhood to the realities of an adult and independent life.
This is often a misguided strategy, as most adults, unfortunately, do not even talk to their children about finances.
Despite low income or even complete monetary dependence on parents, a student can still learn how to manage money effectively.
The main thing along the way is to understand and tweak your financial habits somewhat.
Keep records of expenses and income
According to the best writing services, building financial well-being begins with this important habit.
You must make it a habit to keep track of your expenses.
This will teach you to count money, and money likes counting!
Learn to control impulse purchases, plan your budget… all in all, a really useful skill!
Write down all your expenses: for food, snacks, outings – it doesn’t matter!
As long as you are young, there are no burdens or obligations – it’s time to focus on building your financial well-being.
Strive for financial independence
Many students combine college with work in the evenings or on the weekend.
This is the right approach on the way to full financial independence. But don’t take the first available part-time job and underestimate your abilities.
Attend seminars, view webinars, and participate in training – develop your skills not only within the walls of the university but also outside of it.
This will allow you to find a better-paying job during your college years.
Focus on your career
In today’s world, college life isn’t just about new friends, loud parties, and preparing for a session.
Young people have the opportunity to make useful business contacts and develop in the practical aspects of their future profession.
Even during your first semester, try to find a job in your major.
It may not be a very well-paid job as an assistant or handyman, but you will learn all the nuances of the business from the inside and gain experience that you can effectively apply in the future.
Open a bank account and put aside at least a small percentage of your income.
Later, when you accumulate at least a few hundred dollars, put them on deposit or invest them in other low-risk instruments.
This will help you build a so-called “financial safety cushion” or take care of your long-term financial goals in the future.
Save 20% of ANY income
This habit should be acquired as an unconditional instinct.
When you get money, you immediately set aside 20 percent of your income.
And it doesn’t matter what source the money comes from!
Scholarship, part-time jobs, help from parents, a randomly found cash bill…
Of any small amount – immediately subtract 20 percent and save money for a deposit.
Then by the age of 30, when all your peers are just beginning to get to this truth and learn the basics of financial literacy, you will have formed habits and … a weighty stable fund.
If you are short of money at some point, it is not a crime to use a credit card.
However, paying back your debt quickly should be a priority for you.
This will at least help you avoid a bad credit rating, which can be very important in the future for starting your own business, buying a home, and more.
Ensure a positive credit history
In general, as we mentioned before, from the very beginning of your independent financial life, protect yourself from loans.
The exceptions are large and targeted loans: mortgages and car loans.
All other consumer loans are completely unnecessary in life.
You should teach yourself to live within your means.
However, to take out a mortgage or a car loan in the future without any problems, you must have a positive credit history.
It can be formed quite easily: by taking 2-3 very small loans and repaying them, carefully observing all terms and conditions.
In closing, we want to remind students once again: Your financial well-being tomorrow begins today!
Everything will work out if you act systematically and progressively.