Important Finance Tips For College Students To Save Money

If you are a student who is looking to save money. But you are not able to do it because you spend a lot more than save it. You need to learn how to spend your money more wisely. Tracking your payments is very important so that you can get an idea of where you’re spending a lot of the money. As a student, I made sure to not use my credit card too much. I kept the rule of not spending more than what I could afford. This slowly becomes a habit and people could save a lot more with these tips.

Put a limit to how much you spend

Students normally get an allowance from their parents or relatives. That amount can be small or large based on your financial stability. But always try to make sure that you don’t spend the whole amount. Even though you are interested in binge spending. Try to Limit only 30% of your budget to Lifestyle spending. This includes your enjoyment such as shopping, Eating Out, going to the movies, etc.

Rent in the right place

Even though your friends might have a beautiful large mansion where they live. There is nothing wrong with renting out a small space while you study in college. If you commit to a big place. You would have to bear the large rental costs and managing. This would be a large burden on you. So it’s better to keep your rent cost low while you are still studying.

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Cook your food

During your college days, when you don’t have much income. It’s better to cook your food rather than eat out each day. Because the cost of eating out would be 3 to 4 times higher than the same food at home. Create a habit where you should only go out once a week. Cook your food in the remaining days to save money. You would be able to use that in a better place.

Take the right loan

When you go to college, there is a high chance that you will need to take a loan. Unless you are rich, it won’t be possible without a loan from the bank. Make sure you go with a reputable bank company rather than the shady ones. When you apply, make sure you read all the fine script before signing. It’s better to go with the company your friends already use. So that you would have trust and a better interest rate.

Try to work part-time

While you are studying in college, if possible try to work part time. You would be able to earn some pocket money for your daily expenses. Many of the master’s degree colleges teach for only 2 to 3 days a week. You could work part time as a delivery boy or a research assistant at the same college you study.

Save some amount towards investment

Whether it’s the stocks cryptocurrency, or mutual funds. Try to invest some part of your monthly money that is given to you by your parents. That could be very valuable to you in the future. Instead of spending it on car payments and other enjoyments, the place where you invest could grow and become a passive income for you in the future.

Understand your net worth

Your friend might have rich parents, so they would be able to spend a lot more money compared to you. But it’s not the same for everyone. If you don’t have a strong financial background. Try not to go into debt over simple things. Because that will burden you for the rest of your life.

Travel by bicycle or public transport

Don’t buy a car or motorcycle right when you’re starting college. It looks fancy in front of your friends but you would need to pay it off until you get a job. So it’s better to use public transport or just ride a bike to school. You would also save money on gas.

Keep Emergency cash

Always make sure you have some cash saved up for emergencies. Because you never know when you might need it. Even if you have health insurance, you might need to space some amount when you get sick. So it’s better to keep those ones rather than ask your friends for them.

Buy Generic and used stuff

If you are having trouble paying your student loans, you don’t need the latest iPhone right now. You could just buy a used phone from a couple of years ago. It will work well and you will also save a lot of money. And don’t buy the expensive so that you like. Just get the generic one which is up to three times cheaper. Doing all these will help you save up more money to clear your loan or any debt.

Try to find discounts

You can always find discounts wherever you go. You just have to search for it. Buy on Amazon only during the sale. And go to thrift stores to buy your clothes. All these may same awkward, but it will help you a lot. Try to find coupons in newspapers. You can use those during the checkout from your local market.

Doing all the small things will add up and save you a lot of money. You need to grow it into a habit. But start small, don’t try to save everything in a single day. Because that won’t be possible. And it will also make your life miserable. Just don’t overspend wherever you go.

Track all the spending that you do and make a chart of it. Then you will be able to know where you spend most of it. And try to decrease that amount each month. You would only need to do this until you get a good job. After that, you can start spending a bit more.

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