Students are the most vulnerable generation that becomes the scapegoat when it comes to the financial deals and offers. The credit card companies are sure about striking a deal with the students in lieu of some gifts and offers. Most students fall prey to bad credit card deals as they tend to accept most of the offers in order to grab the deals and this is the reason behind the students getting trapped in the vicious cycle of debt.
Managing your finances during your college life is very important as it will enhance the possibilities of grabbing a job after you complete your graduation. Most employers check your credit score before hiring you within their organization and therefore it is necessary for you to take good care of your money.
Here are some personal finance Tips for a student to follow :
Stay within your means
Being a student, it is most likely that you’re living on a fixed income that might be through some allowances or a part-time job. During such a time, if you commit the mistake of leading a life that is way above your means, it is most obvious that you’ll incur debt. Therefore, check your income and make sure your monthly expenses are lesser than your monthly income and in case it’s more than your income, you should immediately trim down your expenses.
Follow a budget
A budget helps you keep track of your income and expenses and lets you know where your pennies are going. Craft a frugal budget that eliminates all your unnecessary expenses and helps you lead a life within a budget. Don’t outstretch your budget as this will lead to serious consequences in the long run.
Save money
Whatever may be your income, you should save at least 10% of it in a high yield savings account so that you can make your money work for you. There are many who save money but they store them under their mattress and this is nothing but financial ignorance. Be acquainted with a bank and let your money make more money for you.
Stop using your credit cards
Yes, the most important step that you have to take is to stop using your credit cards as this is the reason behind all the financial discomfort that you’re in. Use cash instead of credit so that you don’t fall in debt and require getting professional help.
So, when you’re on the brink of giving up, consider restoring your financial state by following the above mentioned Tips.
Submitted by : This article is submitted by Rick, who is a financial author associated with All Financial Forms.
