Five Tips To Master Personal Finance As A College Student
The mistakes you commit during your college career can have a significant impact on your future life, including running away from personal finance.
College is a time to find your passion, plot your career path, and party (of course). Learning and planning personal finance is one of the last things on a student’s agenda. But, that’s not a thing to be proud of. The mistakes you commit during your college career can have a significant impact on your future life, including running away from personal finance.
According to an Education Data report, student debts in 2020 amount to $1.71 trillion in the United States. That’s a terrifying statistic to be looking at. If you, as a student, don’t want to positively contribute to this, it’s high time to start focusing on personal finance. Luckily, there is no need to undergo a diploma for the same. Just brush up on the below-listed pointers to master the craft of money management.
Keep a tab on loans
Education is not free, at least in several countries. Students who wish to attend colleges have to pay out their fees. And there are three ways to do so- scholarship, dad’s wallet, and loan. Those who don’t have the first two options, opt for loans. At the time, they may not pose trouble, but if ignored can be your utmost nightmare. Loans come with an interest rate, which can increase if the amount is not paid on time. What’s the solution? Just prepare a consistent plan to timely pay off the loan amount and stick to it.
Follow the budget
As a student, it’s easy to go off track. Spending thousands of rupees at Starbucks and buying expensive things (just so you can have them) generally speaks a student’s mind. The best way to control such emotions is to have a budget. It doesn’t have to be fancy or too detailed. Rather, it should relate to your lifestyle and match your goals. This will help you to control your spending and save enough money for your future endeavours.
Once you have your budget ready, it’s time to think about insurance. Today, you can find many insurance products like health, motor, life, and more. The advantage of having insurance is quite profitable. For instance, if you have health insurance and need surgery, its cost will be borne by your insurer and not your wallet.
Start investing now
Savings are important, but investments hold a higher purpose. Just think about it. Having INR 10,000 in your wallet in 2021 will not hold the same value in 2024, as the value of money decreases over time. However, if you invest INR 10,000 in different portfolios of bonds and shares for 3 years, the amount will increase by a significant number. That’s the magic of investing. Students need to understand this and make use of it.
Instant microloans apps
Today, microloans apps are on the rise. They allow people to avail of instant loans with minimal documentation. When credible platforms (like banks) show you the door, students can turn to such apps and conduct the transactions. It is, however, important to steer clear of fraudulent microloan apps that take the illegal route to loan you the amount. So, if you do decide to trust microloans apps, just make sure to partner with a reliable one that is registered with the RBI.
Managing your finances prudently could be the difference between starting your post-student professional life on a sound footing or not. To make that happen, just stick to the above pointers and you'll find yourself to be more financially stable.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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