School life was not that financially demanding, but in college you all of a sudden get confronted with hell lot of expenses that was out of your imagination! Yes, yes, I can understand… after all this is the story of every college-going teenage no matter which time and era they have lived in.
But don’t worry, the internet has it all. Well, nowadays the internet strangely appears to be the ultimate savior for all the students in the world in terms of studies. So why not taking any useful tips on how to make a good financial plan for college students? Here are some right from the heart of the savior-
1. Detect your expenses and work on it
It is a fact that students especially almost all the young people are very bad in dealing with money. Stepping into college is that time when students actually start earning money by doing some kind of part time job or the other. But, only earning money is not all, you need to understand the value of it and know how to manage your finances. It is not only important for the reason that you are in college you need to support your daily expenses, but it is also important because after your graduation you will get into your job life or go for further studies, and that time it will be really helpful for you.
Know what your expenses are and try to maintain daily records of that. Cut off the extra and unnecessary costs and save money for your future use.
2. Try to balance your potential earning and likely expenses
Spending more than you earn or more than what you get as pocket money is the first thing that you have to give up. Try to maintain a balance between these two. If you spend more than what your budget is you eventually end up having debts to your friends or family. This is always a very negative thing because having debt will demand a lot of money from you in order to fulfill that. So be on the safe side and don’t be a wastrel. You can always find those of your friends who succeed in saving money from their monthly budget and victoriously buying those things that you also wanted to buy, but couldn’t because you have already spent all your money on something useless.
3. Keep pace with your credit
Whatever you do please don’t fall prey of credit card debt. Now that is a serious financial crisis that you can meet head-on with. Try to build up your credit card scores and thoroughly check your credit report every month. Use your credit cards to build credit, this will be really helpful in the long run when you will apply for a student loan or rental agreements.
Apart from these three most important factors there are other ways too, by which you can make your strong college finance niche. Those are-
- Use prepaid phone cards instead of the postpaid
- Find out alternative sources for funding
- Plan to enter in the workforce quickly
- Know different bank policies and terminology
- Take professional advice or expert advice from your elders
- Take advance initiatives and plan for auto repair
- That’s it! Follow these simple steps and be the coolest dude in college by being a finance management guru to your friends.
Lionel Smith is a financial consultant for major teleservices company. He keeps wide range of information on the government rules that comes out against the debts, mortgage, insurance. He shares them through his article to let readers know about the present economic environment and thus plan their budget accordingly.