We Got Some Wise Money Management Tips For College Students Out There
Once you step into college life, you’re officially an adult. While some may argue that they’re still on their way to becoming one, it’s a good idea to start practicing wise money management. If you plan to work while studying, it may be even more helpful for you to start making smart financial decisions as soon as you start. Luckily, we’re here to help you with these tips on how to manage your money wisely.
1. Stay Away from Student Loans (If Possible)
It’s true that student loans can be very helpful. However, it can be difficult to repay. Most students tend to take more loans than they actually need. According to CNN Money, in 2013, the average amount of student loan debt was $32,500. When they interviewed students, majority of them explained that their loans took about 9 years to pay back!
It’s not always possible to avoid student loans, but, as much as possible, try to take up only a minimal amount. It would also be a good idea to calculate your ROI .
2. Don’t Spend More Than You Earn
This is the most effective way to avoid over-spending. It may seem obvious, but the truth is, some people need to be reminded of this once in a while. Even millionaires are careful not to spend more than what they earn.
Instead, try investing in your future and avoid debts by practicing self-control in buying expensive things.
3. Come Up With a Budget
Living on a budget doesn’t always mean that you can’t have fun. It means that you can enjoy without the guilt and regret of losing all your money! Isn’t that better?
With a carefully planned and realistic budget, you can keep track of your spendings, monitor your expenses, and calculate how much you need to get by.
4. Deal With Debt
If you do end up with debts, whether from credit card, personal loans, or student loans, you need to learn how to deal with your situation. Instead of sulking around to face bankruptcy, it’s better to take action and find a way to pay it off. You shouldn’t panic. Instead, do the best you can and stay motivated to keep earning. That way, you can finally shake off your debts.
5. Make A Habit of Paying Yourself First
Paying yourself first means to settle your investment and savings account. It’s important to make this a habit. It’s also important to take note that this should be the first thing you do once you receive your paycheck.
Remember that it doesn’t have to be a big amount. When it comes to saving, a little goes a long way, but try to increase the amount as you progress.
6. Take It Easy on the Credit Cards
Hold your horses, pal! We know that credit cards are really useful these days. It makes it so easy to pay items! But they can also be dangerous, if not used wisely. Don’t open too many credit card accounts and always be mindful of your balance.
7. Start investing
Contrary to what most people think, investing is actually quite easy. It’s also very important. The sooner you start, the more time you have to build interest. You can start a small investment account and deposit each month.
8. Emergency Funds
We can’t predict the future. That’s why emergency funds are important. You can start with $1,000 and work your way with a bigger amount as you start earning more money.
9. Know Your Insurance
Getting insurance is also important, and so is knowing what type of insurance you need. You may not need life insurance yet, but it’s a good idea to get health insurance, renters or homeowners insurance, and auto insurance!
10. Savings Goals
Carefully plan your savings goals. If you have an effective budget plan, you can use that as a reference. If you plan on buying a car of home in the future, start saving up for them now.
Based on Materials from The College Investor
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