The time to make new friends, gain life experience, and ultimately figure out what path you want to go down.
While college is a mixture of fun and hard work, it’s also a time to be thinking about the future. And like it or not, a big part of your future is going to have to do with money.
When you get your personal finances in order and set yourself up for financial success, your money worries will be slim to none. Go in the opposite direction and you’ll be setting yourself up for a life filled with struggle, stress, and regret.
Let’s look at a few things every college student should know about the finances.
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.
“BUDGET” IS NOT A BAD WORD: Your budget is your best friend as far as personal finances go. The great thing about the budget is that you get to make them yourself. You determine how you want to spend your money according to your own set of morals and priorities.
A well laid out budget will allow you to live your life the way you want to while also working towards your financial goals.
MAKING LIFE LONG SACRIFICES NECESSARY: College can teach you a lot of important financial decisions. Life outside college is all about sacrifices too. You are not going to get your degree, land your dream job, and be able to afford a lavish lifestyle.
Instead, you’ll get your salary and then have to choose between paying the rent and buying new clothes. Making the right choices while making sacrifices is the utmost key to be on the right path.
AVOID CONSUMER DEBT: Consumer Debt is the arch-enemy of your personal finances. It drains you of your financial resources and adds unnecessary stress to your life. While you might want to take the debt out on a mortgage or even investment properties, you should not take out consumer debt. And just in case, you’re wondering some examples of consumers of consumer debt would be credit card debt, furniture loans, car loans, and any type of non-essential debt.
INVEST IN YOURSELF: Only your knowledge and skills will help you get opportunities related to money.
Investment in yourself, pay off best, and if you realize how to make money with your brain, you will necessarily earn them.
REASONABLE SAVINGS: The statement does not imply counting each cent, although this is also useful. Reasonable economy means buying only those things that are really needed. These savings if done at the right time will hold up to your future with a lot of safety for you and your family.
