July 26, 2023
- Olsen Breet
- October 18, 2021
Having a sorted financial foresight is always beneficial regardless of the profession. Many people do not have futuristic thinking in terms of finances and lack the art of financial management.
Especially for students, it is very important to manage their finances well. Students should save a good amount for the emergency phase so that it can ease off their worries.
The student financial life
Every student should follow the concept of a monthly budget to cater to all their expenses. Many students do not worry about their finances, but saving some money is essential to have a secure future.
Financial mistakes by students
Unlimited spending
Many of the students make the mistake of overspending and do not even realize it. It is a very common mistake among students. Most of them may purchase high-end brands clothes or may spend on expensive restaurants.
To save a significant amount of money, students can substitute their luxurious choices with affordable ones. If you control the urge to shop for expensive brands, it can save a lot of money for you.
No planning for emergency fund
Generally, college students are not in the habit of keeping an emergency fund. They go through the financial crisis most of the time because of the lack of effective financial management.
Most of the students spend as if there is no tomorrow. Instead, there should be an emergency fund to cater to emergency situations in future.
No monthly budgets
One of the biggest mistakes of students is not to keep a monthly budget. You should work on your monthly budget to cut down on your spending and move towards saving.
You can follow many practical ways such as keeping limited money in your wallet, making a list of your grocery requirements, using your credit card with restrictions etc.
Not tracking your spending
Whenever you are spending, you should always keep track of your spending. You can either write it manually or take the help of an application that will help you track your expenses.
You can use a simple application or any tracker to simplify things. This will ensure you m move towards controlled spending and not overspending every time.
Misusing instant loan applications
Nowadays, loans are available very quickly. You just need to click a button, and a loan is available to you. With the proper knowledge, you can have access to various loans available in the market.
Many students borrow loans without realizing the debt burden. They end up buying huge loans and are unable to pay them back. These days, some lenders offer lucrative offers on loans that attract many borrowers.
Students being new to loan borrowing get easily attracted and plan to borrow loans to fund their expenses. In fact, many students take an instant decision for bad credit loans. These loans require no brokers and are easy to borrow.
Once they borrow the loan, they get stuck in this debt cycle as it becomes difficult for them to repay on time because of effective financial management. Hence proper loan research and knowledge is required before accessing these loan applications.
If you borrow loans with proper planning, it will help you manage your expenses and keep you financially stable throughout.
Spending more on wants
Most of the young lot fails to understand the fundamental difference between wants and needs. Many students confuse their wants with needs and spend unnecessarily on their luxurious wants.
With most of the spending on wants, they fail to save money for their basic needs. Hence, it is essential to understand the difference and the fine line between wants and needs.
Missing free opportunities
Many college students do not opt for the free opportunities available, especially for them. There are many stores and outlets that offer freebies and concessions, especially for students.
You have to stay aware of all the discounts, coupons, and concessions so that you can take benefit out of it and save you money for all your necessities as a student.
Making unsound investments
Investing is an essential part of financial management, and many students are unaware of this aspect. Investing in stocks and shares requires proper understanding and discussion. If you do not understand the investment, you can save a lot of money.
Many of the students make misguided investments. It is essential to educate yourself and make yourself aware of the right investment tools and techniques. Proper research is required before investing in any stocks or bonds, or shares.
Not making basic savings
Some of the students may end up spending extra on their basic necessities. You should realize that you do not need to make extravagant spending on your basics.
For example, if you stay in a rented apartment, you do not take a very high rent. You can rent affordable accommodation for yourself, or you can share the rent with your colleagues.
Conclusion
As a student, you may not be aware of the right saving techniques. It is essential to be aware and understand the importance of saving techniques. These will help you to save more in your day-to-day life and keep you financially secure in future.
Once you have learnt the art of saving, you can easily manage your finances and move towards a financially secure future.
Olsen Breet is our in-house Financial Expert at EasyPolicyLoans, with more than a decade of writing for various finance companies in the UK. He has got this knack for turning even the trickiest money matters into something we can get our heads around. Before he started sharing his wisdom here, Olsen was playing with big numbers and advising on loans at a bank. He graduated from University of Glasgow, grabbing a finance degree before jumping into the deep end of the financial pool. Olsen’s our go-to guy for making sense of market trends and is always ahead of the curve.
