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3 Ways For Students To Take Control of Their Finances

Thinking about money from a young person’s perspective can be a challenge for us ‘grown ups’ with a different set of challenges and aspirations. That is why this guest post from Sangita who is a student is such a refreshing read. Take a look and please feel free to ask a question or leave a comment below.

Being a young adult myself, I understand the real struggle that many people my age have with managing their money. At this age, it is the first time in our lives where we are posed with the important task of managing our own financial lives and saying that it is overwhelming is an understatement. Therefore, many people take the easy way out by shoving their money issues as far away from their minds until they absolutely have to deal with them. They ignore the problem, procrastinating it to the future.

But, this is not a very wise solution because someday in the future you will have to deal with a bigger mountain of money problems that you have created over the years and you will have no one to blame but yourself. I believe that it is important for young people to take control of their financial situations and empower themselves with the tools and knowledge to properly manage their money. Here are 3 simple steps that may help.

1. Saving money

This is one of the most widely recognised and talked about way of empowering yourself financially and it really is that simple! In university, it is so easy to blow your student loan the minute it comes in on anything and everything. Some of the spending habits of university students are very peculiar it is almost as if they are unaware that someday, they will have to replay this loan! Even more importantly, the loan you get termly needs to tide you over the term and spending it all before its time will only make you scrape through and suffer during the end. If you want to take control of your finances, you need to firstly ensure that the money you have will last throughout the term it is meant for.

Furthermore, when you graduate and start earning it is important to realise that you have a debt from your student loan and you need to prioritise saving over spending to pay your debt off. Even after all your debts have been settled, continue saving your money because only good can come from it! Make saving a habit of yours, so that you will never have to worry over finances over trying times or if you find yourself in a pickle.

2. Realise your power to make more money

Sure, saving money is a very wise and sensible option. However, another very important factor is to constantly look to earn more money and increase your income, especially while you are young and able. Money may or may not buy happiness, it all comes down to a persons outlook on life; however, there is no running from the fact that money does make the world go round. There is no free lunch waiting around. Therefore, always being on the lookout to increase your income should be a priority.

If you are already working, look for promotion opportunities or do some part time work or freelancing on the side, should you have the time and flexibility. If you are at university, having a part time job will not only make your university life more comfortable, it will also teach you some very important life lessons such as, time management and prioritising.

3. Living a Balanced Life

Having stating the two factors above, I think it is important for young people to learn how to live a balanced life. Yes, having money is important, it is essential. However, making sure that your money habits are in alignment with your core values is very important to maintain a happy and balanced life.

If maintaining good and proactive relationships with you loved ones, family and friends are amongst the things you value, take time of from work to spend some quality time with them. This will not only make you a happier person but it is essential in maintaining a healthy work ethic and de-stressing from time to time.