There is a special type of relationship between money and a college student. As a rule, college students are limited in means, as most of them pay for their education on their own, and devotes their free time to work.
The culture of funding ones college expenses by self is very rewarding. Even before people get into the profession, they are actually stepping into the shoes of an adult.
The thought process which calls for an university student to invent ways to generate pocket money is a very rewarding mental exercise.
Considering that an university student is open for all kinds of work, starting from delivering newspapers, working like a bartender, writing essays, etc, their first step into financial independence starts early.
And those university students who combine study and work should remember the following important things about finance.
Stash Your Money
Despite all our numerous insurances, no one is immune to real life surprises. You need to be prepared for anything, and a certain amount of money in reserve will give you more confidence.
This is what is called as building emergency expenses in real life. It has been observed that all successful people has a habit of maintaining 10 times bigger emergency fund than other normal people.
Reject Credits Forever
If you want the money not to flow out of your pocket in an unknown direction, forget about credits and loans forever. This perhaps the most important thing one should know about finance bi-heart.
It is always easier to take than to return back. The psychology of a human is such that a person is very lighthearted about other people’s money. They do not seem to exist in reality.
We acquire a thing in debt and immediately forget about it, but the debt itself does not disappear from it. One day fell in a credit pit; people spend almost their entire lives devoting themselves to paying the loan and interest.
The best advice is not to sell yourself into credit slavery. You will have what you want, but you will be free from an obligatory payment when achieving your goal.
You Need to Plan Your Budget
Student finance planner is the basis for a reasonable disposition of funds. You should clearly realize what amount you need monthly for household needs and compare this figure with your income.
Needless to say that revenues should exceed spending otherwise it is unreasonable to expect student finance money stability.
These days there are excellent budgeting apps available on smart phones which will help in creations and maintenance of a smooth budget.
You Will Not Receive Money for Nothing
Yes, there are a lot of stories about how someone became rich almost in one day thanks to a string of accidents. We all saw how people won incredible sums in the lottery. But they were spent as quickly as they were received.
The main rule is that, money does not come to us from anywhere. They are earned by zealous daily work, perseverance and the pursuit of our goal.
It is better to accept this fact as a reality now when you are a student than to face illusions already in real adulthood.
Invest in Yourself
Only your knowledge and skills will help you to get opportunities related to money.
Investments in yourself pay off best, and if you realize how to make money with your brain, you will necessarily earn them.
Student Finance Right Approach
Money is a means of subsistence. You should respect every dollar earned by your labor and dispose of it competently. It’s not an end in itself; it’s a way to take your life to a new level.
You Need to Find a Way of Passive Fees
You can work as much as you want in your free time, but only passive earnings can give you confidence in the future.
Passive income means the possibility of receiving money from outside while you are busy with other things. Try to find this opportunity now.
The possibility to earn more and more passive income is something that can make one rich.
Do Not Seat at One Place
We were all young and ambitious university students and thought that we have a whole life. Nevertheless, you need to live here and now.
It is quite normal that you want to spend an honestly earned amount. And the best way to do this is to go on a trip.
This solution is beneficial due to two factors. (a) By traveling, we expand our horizons; we grow above ourselves, we go beyond the usual way of life, see new countries, cities, people and even adopt certain values. (b) Traveling is self-actualization in its pure form.
Moreover, most tourist programs offer favorable conditions for college students, season tickets to visit major attractions, visa discounts, and inexpensive flights. Therefore, do not be afraid to travel. Life goes on every day, and you need to see what’s beyond the horizon of your world.
This statement does not imply counting each cent, although this is also useful.
Reasonable economy means buying only those things that are really needed. For example, if you need a mobile phone, you do not need to buy the latest model of the most fashionable brand at the expense of several thousand dollars.
It is quite possible to do with the usual gadget with a basic set of functions.
You need to understand exactly why you need a certain amount of money and how you will dispose of it. It is unreasonable to work only in order to work; you need to understand your motivation.
Final words: If you are a student, you have already known about finance from this blog post. Let’s discover more things on your personal finance you haven’t thought about.
Disclaimer: All blog posts of getmoneyrich.com are for information only. No blog posts should be considered as an investment advice or as a recommendation. The user must self-analyse all securities before investing in one.