The earlier you start learning about how to handle your money matters, the more wisdom you gain. It is always good to be money-wise to avoid future crisis. And if a debt is accumulated, you will know that you need to jump in quickly and take rectifying actions in order not to let matters escalate out of hand.
Students should aim to clear their student loans before graduation because graduation might seem to be the end, but it is the beginning of every graduate’s chapter. Equip your minds with these insightful financial concepts and lessons before you enter the workforce. Ask a loan advisor.
#1 Save And Fund
Saving is not only for people with stable jobs; it can also be for students who receive allowances and work in different part-time jobs. No matter how big or small your daily savings is; it is still part of the whole that you will have later on.
The emergency fund is a reserve amount that can only be used during a crisis. So, you do not need to borrow any amount from other people, especially your parents. On the plus side, it does not have any interest because it is your own fund.
Students who initiate to save and freelance, are more likely to earn and sustain even during an emergency like economy downturn or unemployment.
#2 Discounts Is For The Wise
Department stores and big malls flash a lot of sales promotions featuring discounted items that entice students like you to spend. You wouldn’t appreciate a newly discounted wine, when you don’t even know its value in regular price. You end up buying the bulk of soaps and detergent and store them somewhere in the house when you have a surplus.
Therefore, a discount is only for good if you really need the item. Do not get fascinated by sales; otherwise, you’ll end up wasting money on non-beneficial products.
#3 Invest In Small Business As Starter
Money should be profitable and not stagnant. To earn and let your money grow, try investing in small business or deposit your money in a bank with high interest for it to grow. You can also invest something on your passion and enhance it to be gainful. This is not an assurance of a big income, but it is perfect for a start.
#4 Think Ahead About Future Expenses And Income
As a student, it is normal to think about projects, deadlines, exams, and grades. But, when you step forward to the real working world, those problems you have right now will be in the past.
To prepare yourself for the future professional life, it is better to start listing and calculating possible expenses that you need to prepare yourself. It can be a new wardrobe, car and others. Bear in mind that you will try to conquer the workforce without incurring new debts.
#5 Do Not Spend More Than What You Gain
Outside the four walls of the classroom is the real world with delightful and tempting materials. The branded clothes, latest gadgets, trending cosmetics are only a few of those things you might want to have as soon as you land in your first stable job. Keep in mind to spend lesser than what you have earned to avoid financial difficulties.
With these 5 lessons in mind, always be aware of your expenditure and there are always apps that you can make use of to track your spending. Give yourself an awesome first step into the real world!
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