As they don’t know how to manage their finances well due to lack of prior experience, keeping expenses under control is a challenge for the students moving out of their family for the first time to pursue higher studies in big cities.
“College life is very exciting and daunting at the same time. Living alone will be difficult for students but can be made easy. There are some financial tips that will make your experience of living alone a good one,” said Prashant Sawant, Co- founder, Catalyst Wealth.
So, along with studies, they need to learn how to keep their expenses well within the amount sent by their families.
Sawant lists the following steps to learn how to manage the finances well:
Learning the importance of money
The pandemic has taught us that the future is unpredictable and financial planning is very important especially for a rainy day. Understand your spending pattern and accordingly manage your money around it.
Creating your own budget
Plan your budget in such a manner that you keep aside funds for your rent, utilities, electricity, food and other necessities. Budgeting your expenses will help you to determine how much money you have to cut down on other expenses. It is important to pay off your debts and maintain a good credit score as this will come in handy later in life when you are planning to scale up your business.
Working while studying
If you are facing financial trouble the best way to solve them while studying is to get yourself a part time gig. You’ll get an extra buck and your free time will be used constructively.
From the money that you have after paying for essential things, you should save some money. Try your best to save at least 10 per cent of it.
Invest the money saved
If you are planning to invest your savings into the market. It is very crucial for young adults to be in touch with a financial advisor. They will give you advice on taxes, high interest saving’s bank accounts and how to invest in the market.