If you are studying in a college or learning some courses. Obviously you are most likely to be your own in charge for financial affairs. Especially when you don’t live at home and not a reliant on your parents’ economic universe.
Certainly you are free to decide where to and how to spend money. Reasons may vary, maybe you live many miles away from your Mom and Dad.
But certainly, that freedom comes along with disguised responsibilities within you. Such as spending money wisely and maintaining your financial consummation.
Here it is the turning point of your life from a silly child to a mature person. You can decide and you can also get to experience both good and bad results of your choices.
Check Out the video about 5 Amazing Financial Tips for Students
So, here are 7 financial technics for students those may help you stand strong financially
1. Read Books About Finance
If you are eager beaver with your finances, but not certain how to start and where to start. You should seek financial wisdom from the interviews and books written by financial experts.
There are numerous books to get uplifted your finances from how to get out of debt to how to build an investment portfolio. Books provide a great way to change your approach to managing money.
If you want to boost your savings and financial position, buy used or second-hand financial books, borrow them for free at your local library or read them online. That will reduce your expenses on books as well. Consider audiobooks if you would like rather receiving the advice by ear.
Dealing with the changes you can provide book services as well. Most of the colleges have work-study programs that allow you to create a work schedule around your college. The payment is usually not that good, but still not laborious as other hard work. You may begin stacking books in the library. It will also help you in reading more wonderful books.
2. Take Control And Be Responsible.
Certainly, it can be too obvious to avoid your finances when there are so many other challenges to meet with. You may have to make many adjustments regarding college life. But simply it’s tough to begin your adulthood with bad money habits. And believe me, college is an excellent place for you to decide to be responsible with your money and to take charge of your personal economy.
Even though your parents continue to pay many of your bills. They can be tuition fee, room rents, food bills, and some other obligatory bills. For example — you should work on a plan out with them for shifting your other expenses under your control. You just need to have a solid, well-thought financial strategy and a firm will. Just place them from Day One because tomorrow never comes.
3. Avoid Student Loans
Student loans these days can cause a huge amount of stress and can be very overwhelming. Considering the heavy prices of tuition, it can be the only option for many students who want to earn a degree but can’t afford to pay for it.
The fact about student loans is that they have seemed like a good idea at the time you sign up. They allow you to choose the university you want. You can be able to live comfortably and can have the freedom to study full time. But later they can create a huge mess in your easy-going life. It turns tough to be paid back with interests. You can overcome or avoid this by following these steps-
Start working and start saving as well. Obtain as best you can in high school to be eligible for university scholarships. Budget your spendings and try to find ways to be cost-effective. Employer tuition reimbursement.
4. Try To Spend Less
The major part of it is played by student scholarships. You can be bona fide either from your university or any government schemes. If you are liable to have them then just get avail yourself of them immediately. You can also take advantage of any student discounts from local businesses.
- There are various special schemes and discounts available for students provided by the government or other organizations.
- Do check online for student deals on books, food, travel, clothing, entertainment, and many more.
- Clip coupons before a shopping trip and buy generic whenever possible.
- Never spend extra money on food to show off, especially fast food.
- Wait for the next blockbuster to go to DVD. You can borrow it from the library. Sooner or later, all movies become free.
- Don’t overspend on your phone data plans — use Skype to call home. Should maintain a budget
It is mandatory. You should determine the amount of money flowing your way from all sources like by parents, student loans, financial aids and scholarships, and possible income from your own employment.
Then you have to estimate your overall expenses like books, toiletries, travel, outings, entertainment, etc. Try to make everything balance by putting all of the categories and numbers into a spreadsheet. Also mention leaving little over for unexpected emergencies and savings. There are online tools to help you with all these data interpretation.
Now you need to be committed to sticking to your budget. Getting sidetracked from your financial blueprint will defeat its purpose and risks will push you into debt. So go back and check the budget when you feel the urge to spend impulsively, particularly on anything that you don’t really need.
5. Have a Student Bank Account
It’s very obvious that as a student, you must have unique banking requirements. With a minimum account balance of only $8, to meet your special needs, you must maintain a student account by ensuring your maximum convenience.
A Student Account is a Non-Resident External, NRE Savings Account which is specially created for students. So, you can manage your finances with convenience and ease, when you are studying out of India.
Either you can manage your account PPF Account. Public Provident Fund, a tax saving investment option, initiated by the government of India.
PPF is also called a Savings Cum Tax Saving Instrument. It enables individual to create a financial base in the long-term while saving on annual taxes. Currently, the interest rate is 7.9% which is compounded annually.
ROI (Return on Investment) is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments made by you.
ROI= Cost of Investment\ Current Value of Investment−Cost of Investment
Maintain a routine for yourself that for regular accounting of your finances. Be careful about keeping the records of what you’ve spent out and what you is left behind in your account. That may help to cover the remainder of your monthly expenditures. You will have a clear cut picture of your financial situation.
This financial self-knowledge is the key to keep yourself on the right track. It’s not about that you have to be updated with every single detail, but should have a good idea of when you can hit the ATM precisely by some spare bucks.
6. Use Credit Card Wisely
If you are not lucky enough to have a credit card from your Mom and Dad with a generous spending limit or you haven’t made the acquaintance of a credit card till now. This may be the right time to start understanding the responsibilities and the benefits of credit.
First of all, you should know how a credit card actually functions. Be sure that a credit card is a loan, not free money. It means that if you run up any balance from it, has to be repaid. If you are not able to pay your bill on time.
You can be penalized with interest charges on the principal amount for late payments. So, be cautious with the use of credit cards or the paying bills.
You can start with an account having a low limit and use it cautiously at first. But remember to pay it off monthly in full. By doing this, you can establish a solid credit history that will continue throughout college life and beyond. It will definitely benefit you when you are looking for a new car, gadgets, events, or your first house.
7. Improve Your Job Skills and Get A Job
Ensuring that you have the required skills you need to beat the competition in the workplace. For this, you can take extra certifications or get training through your current employer or educator. It should be your priority to have a graduate degree that qualifies you for a more stable profession.
Yes, there is a lot of work in college days. You must have a full load of courses, term papers to write, and lots of studies to do. And obviously you also deserve free time to get socialized and indulge in extracurricular activities like sports and internal politics.
It builds a tough task to focus and give time to other things. But the money that you can earn from working part-time while you are in college can actually supply a great portion of your requirements.
You can look for off-campus restaurants, tutoring, or retail jobs with part-time hours.
8. Abstain From Buying New
It is not mandatory to purchase a new textbook. Go for a used one for a much-reduced price. If you need to buy a new one, don’t forget that campus or retailer prices are almost higher than online retailers like Amazon and Flipkart. Ordering e-books are too common these days for an e-reader or laptop. The ONLY difference between them is the virtual and actual text.
The same formula can be applied to the other things, like, if you’re moving into a new hostel room, someone else must move out. There is a possibility to get a used refrigerator or coffee pot from someone on campus. Reducing, reusing and recycling helps the environment and saves money.
9. Be Particular
Be particular and cautious when it comes to your money. Don’t leave cash lying around or in unlocked bags. It would sound harsh but abstain from those friends, classmates, and others who want to borrow money.
Be precise about how you should spend or invest your money. Be cautious about identity theft, especially when you are shopping or banking online. Think about forwarding a copy of your financial mail to your parents.
Life is unpredictable, so, expect the unexpected by keeping an amount of cash in a safe place for emergencies.
10. Entertain on a Budget
Yes, life can be boring without some entertainment or outing. There can be lots of ways to have a good time in college without having a bunk. Moreover, in many college activities are free to students because a general student activity fee has already been added into your tuition payments.
Set limits on your spendings for night outs, dinners, movies, and dates. Never get into an illusion by believing that you need to prove anything by the amount of money you shower on your friends. Having fun and chill is good, but don’t forget why you are in college. So, maintain your financial fitness.
Recommended: How to be Financially Independent by 25
Good money habits you begin to practice in college will serve you well during your years there and beyond that. Learning how to use money intelligently, is a part of your better brighter future.
But don’t endanger your college career by creating a hole that you can’t dig out of.