5 Financial Tips for College Students

Financial tips for college students

Ready to embark upon your college life?

It’s time to learn some surefire financial tips for college students that will serve you well when you enter a new phase of adulthood and independence.   

College is a time of exploration, freedom, and growth. One of the most important things you can learn during this time is how to spend money wisely.

Top 5 Financial Tips for College Students

Here’s how you can lay the foundation for a financially prosperous future.

1. Start Building Credit

Your credit score will be one of the most important things in your life after graduation. If you end up with a bad credit score, it’ll be difficult for you to get a lot of things in life, including a job and housing. Moreover, loan companies may ask you to pay more or deny your request altogether if you have a bad credit score.   

Hence, you must start building credit in college. Get yourself a credit card or become an authorized user of your parents’ card. The earlier you get yourself in the game, the better.  

2. Avoid Credit Card Debt

It’s not uncommon for college students to graduate with student loan debt. In 2021, it has topped $1.7 trillion!

Unfortunately, it may be difficult to avoid student loan debt if you want to go to a good college. However, credit card debt is a different thing. You can easily stay away from that.

Considering the high interest rates, credit card debt can hold you back financially for years!

So, make sure you spend less than you earn in your college days so you can easily pay off your monthly credit card bill.

3. Follow a Budget

Budgeting is a critical skill that will come in handy all your life. To create a budget, you should calculate the amount of money that comes in every month and then estimate your expenses. It’s best to create different categories for your spending.

As the month progresses, track how well you’re following the budget. Any money that’s left at the end of the month can go into savings.

4. Savings, Savings, Savings

The uncertainty of life calls for savings or an emergency fund for rainy days. When you’re in college, these emergencies will be minor. However, your savings will prevent these extra charges from going on your credit card. This will help you maintain your position of financial safety.  

5. Learn How to Invest

While saving money in your college days makes you worthy of a pat on your back, you should learn how to invest it in order to grow wealth.

If you have a job, you should consider getting Roth IRAs. These tax-free retirement accounts take post-tax money. While it’s great to explore more options, try to leave anything complex for after graduation.  

These simple financial tips for college students will ensure you enjoy your college days without having to worry about money. The best thing is that these habits will make your life after graduation easier too!

3 Things Money-Saving Experts Believe Are Worth Splurging On

Things worth splurging on

Saving money doesn’t require you to live a life of deprivation or becoming a stingy spender, thinking a million times even before spending on essentials. What’s the point of earning money when you can’t live a comfortable life?

Financially sound people are smart spenders. They know where to become thrifty and what things are worth splurging on. To help you learn the art of smart spending, here we’re highlighting some of the things that even money-saving experts believe deserve to be splurged on:

1. Things That Can Improve Work Performance

Whether it’s something as simple as a planner or as extensive as a good laptop, career counseling, or courses to improve or learn new skills, experts believe that anything that can help improve your performance at work is worth spending on. For people who work from home, this could also mean investing in high-quality home office furniture and a reliable and efficient internet connection.

2. Services That Help Save Time

In today’s fast-paced world, most of us struggle with hectic schedules. In such a scenario, it’s worth paying for services that you may not consider necessary to make sure you invest your time and effort where it’s needed the most. These may include getting groceries delivered to your home, sending your clothes for laundry, or hiring a house cleaner.

3. Good Experiences

No material possessions can give you the pleasure that comes with good experiences. Invest in experiences that make you feel happy, relaxed, and help improve your health and well-being. These may include traveling, going to a spa, joining a club where you get to spend time with like-minded people, or getting a gym or sports club membership. In today’s highly stressful life, it’s worth splurging on experiences that make you feel alive, happy, and relaxed.

Whether you’re a thrifty spender or on a savings spree, don’t hold back from spending on things that can improve your health, well-being, and quality of life and help make it a little less stressful. Consider them investments rather than expenses and splurge on them if and when required.  

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 Photo by Karolina Grabowska from Pexels

5 Ways to Practice Self-Control With Finances

person holding dollar bills

Money can provide relief, but it can also be a source of stress. If you find yourself struggling when it comes to practicing financial self-control, here are some helpful tips.

Resist Temptation

Start by cutting yourself off at the source. Yes, we’re talking about fewer trips to the mall and anywhere else you may find yourself at the mercy of impulsive tendencies.

Another effective strategy is to leave home without your debit and credit cards. That way, even if you’ve got your eyes on something, you simply won’t be able to buy it.

Unsubscribe

Once retailers get their hands on your email, they keep those discounts, special offers, and end-of-season sales coming. We know how tough these can be to resist, so do what we did. Simply unsubscribe from those dreaded email lists.

Don’t Save Your Autofill Info

Saving your information after a purchase sounds convenient, but this is actually a marketing strategy. The option to automatically fill out those boxes favors retailers more than it benefits you. When you have to type in your information each time you shop, you may second-guess your purchases. This is the biggest fear retailers have.

We’re pretty sure you can do without that floral scarf; your summer will be perfect without it.

Keep Tabs on How Much You Spend

This tip should really be filed under Financial Self-Control 101. Even someone who’s not actively trying to save will tell you just how important it is to track your expenditures. Maintain a budget sheet; looking at those numbers alone should help curb your spending.

Monthly Deductions

When you get your paycheck each month, immediately set an amount aside as savings. Refer to it as the ‘touch-me-not’ pile. You can even automate this process by setting up a separate bank account for the purpose.

Conclusion

Just like any other habit, financial self-control will become second nature once you start applying these tips. Trust us, it will pay off in the long run…literally and otherwise.

4 Budgeting Tips You Need to Follow

Budgeting tips for beginners

Do you hate budgeting because you think it robs you of your freedom to spend your money?

Well, you’re not alone. But it doesn’t mean you’re right.

By making you create a spending plan for the month, budgeting actually ensures that you’ll always have enough money to spend on things you want. It is the best way to stay out of debt or pay off what’s due on you.    

Here are some practical budgeting tips to help you get started.

1. Start from Zero

If you want to stay on top of your personal finances, creating a zero-based budget is the way to go. This means you should get a big fat zero when you subtract your expenses from your income. Simply put, you must assign each dollar to something before the month even starts.

Start by calculating your monthly expenses and subtract the amount from your income. If you get a negative value, bring your costs down. You can start a side hustle or sell some items if you need extra money. In case you have a few dollars left, they can go into savings.

2. Set Your Priorities Straight!

No month is the same as the last, which means you’ll have to figure out a spending plan for each month. Some months you’ll be spending on home and car maintenance and other routine expenses, and other months, you may be saving for special occasions or vacations.

When you set priorities for a month, giving and saving should always come first. Then come food, shelter, utilities, clothing, and transportation. Once these categories are sorted, move on to others.   

3. Pay Your Debt

One of the most important budgeting tips is to set aside your debt amount first. Pay off what’s due as fast as you can so that you can have complete control over your money.   

4. Create a Plan and Stick to It

To eliminate stress from the equation, pick specific dates for your expenses. Follow the plan religiously and track your progress. If you’re afraid of overspending, try the envelope technique and use cash for each category.

Budgeting doesn’t mean you can’t spend as you will. With these budgeting tips, get ready to manage your money in a smarter, more efficient manner!  

5 Tips and Tricks to Save Money on Groceries Every Month

Tips to save on groceries

For most of us, groceries take up a major chunk of monthly expenditures and often exceed the dedicated food budget. We may put the blame solely on the increasing food prices. However, the truth of the matter is that we are also almost equally responsible for high grocery bills. If you also struggle to stay within your food budget limit, here are some simple yet effective tips and tricks to save money on groceries each month:

1. Compare Prices Online

Browse the websites of different grocery stores and compare prices for various items to find out which store is offering the best prices before visiting. You can also download price comparison apps to find the cheapest grocery store in town.

2. Plan Your Meals and Prepare List Accordingly

The best way to ensure that you only buy things you will use is to plan your meals for the week and prepare the list of items that you need accordingly. This will not only help reduce the grocery bill but will also avoid food waste.

3. Check Your Pantry

We often buy things at grocery stores making assumptions that we have run out of them. But, our guesses do not always turn out to be true. Often, we find things lying at the back of the pantry, hidden from your view. Therefore, it’s important to always check your pantry before going for grocery shopping.

4. Buy in Bulk

If you have a big family, buying in bulk can help you save a good amount of money, especially online. However, be careful when bulk buying and make sure to only buy things that you are certain of consuming, such as flour, rice, or meat.

5. Scan the Aisles before Buying

Before you grab a product from the center racks of aisles, always scan them from top to bottom. You will likely find better-priced items, most probably on the bottom shelves. Grocery stores have the strategy of placing renowned, pricier brands at eye level, in aisles, to increase their sales.

These tips and tricks may sound too simple, but they’re tried and tested. Use these tips to reduce your grocery bill without compromising on your needs.

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Photo by Oleg Magni from Pexels

3 Ways to Save Money in Everyday Life

Tips to save money

Do you struggle to save money? Then you’ve come to the right place.

The idea is to not make a big deal out of it. Practice these money-saving hacks on a day-to-day basis, and before you know it, you will have saved more than you could ever have with your piggy banks.

1. Always Make a List

Are you a shopaholic who seems to impulse buy a lot? Or do you find a use of everything you set your eyes on? Here’s a trick, as old as time, and has always worked. A list!

Every time you realize you have run out of something, add it to the list. Before leaving the house, make sure everything you need is there and then stick to it. The same goes for everything you are enthusiastic about, such as books, makeup, snacks, etc.

2. Stick to Cash

At the beginning of every month, take out cash that you are budgeted to spend and leave the savings alone. If possible, hide your credit card in the deep recess of your wallets only for emergencies.

Paying with cash limits and helps you stick to the budget.

3. Change a Few Small Habits

Your little habits can save you tons of cash in the long term. Do you eat out twice every week? Change it to one. Do you buy water bottles frequently, which end up adding to a small amount? Start carrying your water bottle everywhere, ride a bike, shop on sales, turn off the switch, keep your thermostat in check and rely on windows, fresh breeze, warm sweaters, and a heavy blanket.

With these little hacks, not only will you end up saving money, but you’d also end up improving your quality of life.

Image Credits

Photo by Andre Taissin on Unsplash

Make Sound Money Moves In Older Age – Investment Ideas for Seniors

Make Sound Money Moves In Older Age – Investment Ideas for Seniors

Retirement life has its own sets of perks and downsides. While you get to spend more time with your loved ones and enjoy life, in general, there is also a constant fear of running out of money. Ideally, everyone should start saving money for their retirement life in their 20s. However, it doesn’t always happen. Several surveys and research reports show that a large number of Americans are not saving enough to fund a comfortable retirement life.

If you belong to this group, your best bet to achieve financial security is to create a passive income stream. Following are some investment ideas for retirees and those close to retirement that do not involve many risks but will provide a decent return:

1. Fixed Income Investments

Fixed income investments do not provide great returns. But, they are considered safe investments because there is zero to very low risk of loss involved. Some of the most common fixed income investments include certificates of deposits, treasury bonds, municipal and corporate bonds, and government and agency bonds. Many companies also offer mutual funds, annuities, and other insurance products specifically tailored for seniors.

2. Dividend-Paying Stocks

These are basically well-established companies that disburse a part of their earnings among their shareholders. Since these are stocks, there is a bit of risk involved. However, returns on them are higher than fixed income investments. They also generally perform better in bear markets than growth stocks.

3. Real Estate Investment Trusts

As evident from the name, real estate investment trusts (REITs) are groups that invest in the real estate market, in mortgages or equity positions, and pay regular dividends to the investors. REITs are considered good investments because they are low-risk and provide good returns, higher than dividend stocks and fixed income investments.

These are three good low-risk investment ideas for seniors. While you can choose to invest in any one of them, it would be wise not to put all your eggs in one basket. A smart approach would be to divide your finances among multiple schemes.  

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Photo by Andrea Piacquadio from Pexels

4 Personal Finance Tips for Young Adults

Finance tips for young adults

As a young adult, most of us earn only enough to get by with day-to-day expenses. Any thought of saving doesn’t even cross our minds because of the sheer impossibility of it.

However, if we play our cards rights, even little savings can make a world of difference in the long run. Here are some foolproof tips for young adults to manage their finances:  

1. Invest in Your Education

If there’s one expense you want to splurge in, make sure it is your education. Calling it an expense is illogical. Investing in your education can help you earn a lifetime of income. At this point in your age, think of specialized courses that will increase your worth as an employee and open doors of opportunities for you.

2. Start a Saving Fund

In our finances, we often forget to pay ourselves. Paying for the house rent, transport, college debts, necessities do not count as paying yourself. Every month, take any amount that you can spare and piggy bank it away.

This saving fund will feel like an absolute blessing when you’ll find yourself in an unexpected situation in the future.

3. Think Every Purchase Through

This is one of the best tips to follow when you are saving money for a better future. Every time you are going to buy something, ask yourself, ‘do I need it?’

4. Gift Yourself

To young folks, material possessions appear extra appealing. To dissuade yourself from impulsive buying, allow yourself to purchase just one thing within a budget each month. This way, you’d think long and hard before making a purchase.  

Saving money doesn’t mean you can’t have fun; it just doesn’t necessarily have to involve spending money. You can always read books at the library, try amazing new recipes at home, and enjoy the outdoors. Look out for free or low-cost fun activities and follow these saving tips to build a financially secured future for yourself.

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Photo by Alexander Mils on Unsplash