Student life is a mixture of insanity and responsibility. Students have to solve many problems with the study, work and plan their income and expenses on their own. Writing services for college students can greatly help with studying. In turn, this article can help with revenue and expense planning.
Generally
Financial literacy is not something fantastic, it is simply knowledge of some principles. They are not a secret and in many subject books, you can find some excellent tips. However, one cannot do without an integrated approach, because half measures are not capable of producing the desired result.
How to Learn to Manage Money?
Step 1. Start Keeping a Budget
This is the basis. A budget is not only an account of income and expenses but also a plan for saving money and investing.
Many financial experts believe that the budget should be maintained on the principle of 60/30/10:
- 60% of the income should go to your needs;
- 30% of the income should go to your desires;
- 10% of income must be deferred.
However, if you want to become financially independent, you need to put yourself in more difficult conditions. For example, a budget can take the form 50/10/40 and even 50/5/45. It all depends on your living conditions, on income, and expenses.
Step 2. Don’t Follow Emotions
Acting like others, we feel safe. That is why we buy securities that are expensive, in the hope of further growth, and sell shares when they begin to fall, subject to fear. We can hold the shares of the employer because we are loyal, or sell securities because it is … funny. This behavior is more like a game of chance. This is exciting, but it is unlikely that you yourself would advise anyone to play in a casino in order to save money for the future.
Investing is not entertainment. It should always be consistent with your goals and principles, and not based on feelings about what will happen. Do not play in the stock market especially during your student years.
Step 3. Take Loans with Caution
Often a person wants to get the thing they like instantly. If these are the next shoes, then you should wait for the salary, but if it is a technique that will bring income, then you do not need to wait. Bank loans help to resolve this issue.
You can take loans but within reasonable limits. The advantage of a credit card is that it allows you to make a one-time large purchase, the value of which you can return within 2-3 months (depending on the conditions of your program), transferring money from the salary in parts.
Step 4. Look for new Sources of Income
An additional source of income will give you confidence in tomorrow. A person will be less dependent on the basic salary. In this case, the main desire. So the source of additional income can be the ability to knit hats. There is always a demand for them, and if you do it efficiently and creatively, then income will increase.
It is worth selling all unnecessary things. There is no need to stand in the market and spend time on it, just use the Internet. Having studied the financial literature, you can invest in banks. If you have unclaimed property, it must be leased.
Step 5. Minimize your Monthly Expenses
This should be a habit. Once a week, think about what costs can be reduced. In this case, it is important to be in a good mood and not assume that you are making sacrifices. Turn the process into a game.
Here are three key questions to help you stick to this rule:
- Do I really need this?
- Can I do without it?
- What are my options?
Step 6. Think Sparingly
Whenever we hear that a person is economical, then we immediately begin to consider him/her a miser. Sometimes this is true, so try to clearly define: what does frugality mean to you?
For example, frugal people tend to:
- Cook at home instead of ordering food or dining at restaurants.
- Use free apps instead of paid ones.
- Go in for sports on the street instead of buying expensive gym memberships. Some people even think in the spirit: “If I buy a subscription, I’ll definitely go to the gym so that it’s not so offensive.”
- Buy good and at the same time not expensive clothes (and there is one).
- Take books in the library, not buy them.
Summing up
Money does not tolerate waste, they must be managed carefully and judiciously. In your student years, you are still not rich enough and do not have such a stable income that you can spend money uncontrollably, so save. If you learn to control small amounts, then soon you will manage to manage large savings.