Unfortunately, most secondary schools, polytechnics and JCs do not require students to study personal finance. Many young individuals are unaware of how to handle their money, obtain a credit, and stay out of debt due to a lack of fundamental financial education. Don’t worry, here are some of the most important things you should always remember to be financially free.
Keep Track Of Your Spending
Budgeting is the most effective approach to do this. When you see how much your daily bubble tea costs over the course of a month, you’ll understand that little, reasonable changes in your daily expenditure may have just as much of an impact on your savings as a raise in salary or pocket money. We recommend that you use a spending tracker like the app Wally which will help you visualize how much you are actually spending on food, clothing and outings.
Furthermore, keeping your typical monthly costs as minimal as possible will save you a lot of money in the long run. Even if you can now afford the newest computer with all the bells and whistles, choosing something more basic may allow you to buy a condo or house sooner than you would otherwise be able to.
Credit Cards And Self Control (Above 18)
If you’re lucky, your parents taught you this the hard way when you were a child. If not, remember that the sooner you master the discipline of deferring gratification, the easier it will be to manage your money. A student credit card can make it easier for someone to spend money since you are actually spending “future” money, and this makes it harder to have self-control. If you have a practice of placing all of your purchases on credit cards even if you can’t pay in full at the end of the month, you may still be paying for those products in ten years.
Consider using just a debit card which is just as convenient as it deducts funds from your checking account. The motivation you gain to save and earn more will heighten drastically as you watch the numbers in your bank account get lower and lower each day. Better yet, have at least 2 bank accounts from different banks, one for savings and one for daily spending so that you can better manage your finances while saving for rainy days.
Learn About Interest And The Power Of Investments
Few people ever become wealthy only because of their monthly salary. Long-term prosperity is based on long-term savings and investments. A savings account with a bank offers you interest, while it is not high, the money is liquid and safe, allowing you to use it quickly to pay for short-term needs. Investments (stocks, bonds) have the potential to provide larger returns over time, but their value can fluctuate significantly. For example, if you have a few before graduating from university and don’t need your money to be liquid, you may invest in stocks and bonds. It may generate 4% to 6% annualized returns, rather than placing all of your money in a savings account, which pays less than 1% interest.
We are not financial advisors here so we can’t exactly recommend what to invest in but you might want to look into mutual funds for starters. If you feel like it’s better to invest in a companies you are fond of you, can create a account on tiger brokers, an online and mobile brokerage.
Student ID Discounts
Did you know that using your student ID may save you up to 20% at Levis and up to 10% at Apple. Consider how much money you could save if you bought your, phone, jeans and even streaming subscription at a discount. Although most establishments have this policy, remember that some places may not provide student discounts, but you may always ask!
Remember that you don’t need a fancy degree or experience to become an expert in financial management. To prepare your road to a financially free future, all you have to do is follow these easy steps and carry out your own research.