Want to know how to manage student finance to be successful?
First, read this article that can help you manage your finances during college. Happy reading!
Learn how to manage student finance
How do I manage student finances and needs each month? Even if you’re not yet working, as a student getting older you need to be more mature when it comes to managing finances, right?
Yes, you MUST know how to manage your finances daily.
Have you ever imagined how difficult it would be for your parents to help you pay off your college tuition next semester? What will you do if it turns out you have no savings because you are not managing your finances well?
Here you must learn to handle finances well because there are many things that we will not know about tomorrow.
Here are some tips for you students in managing your finances.
Saving must have been taught to us by our parents from childhood. This advice is often boring, but very useful for our future. Always prioritize our savings when receiving money, whether from our parents or when other relatives give us pocket money. Savings that we prioritize will be very useful to us in the future. The savings we make regularly can be used for small investments, like mutual funds, or for financial goals you want to achieve. For example, buying a laptop or printer that you need for your college work.
#2 Identify different sources of income
As a student, there are usually parents who still provide support for tuition and snacks. Use this source of income, in addition, you need to start learning how to do business, or work on the side to help parents. Help your parents allocate funds to other items such as B. to help your sister who is still in school and so on. Try to find a part-time job that doesn’t take up your studies and your study time. There are many freelance and part-time jobs that you can search for over the internet. If you are an outstanding student, you can apply to be a part-time faculty member or the administrative assistant at your campus.
#3 Define different types of expenses
After you have recorded all of your revenue streams, you now need to record all of the expenses that you will have to spend in a month. Mandatory things should be prioritized, such as B. Payment for meals, phone credit, transportation, tuition, daily meals, and money to buy books, photocopies, and stationery.
#4 Create a financial budget plan
Next, you need to create a financial plan. Arrange it well so it’s not “big pins than sticks”, aka too big a cost. If your expenses are larger, see if you can cut back or if there are expenses that aren’t a need but a need. Of course, if it’s still not enough, you need to increase your income stream. If the financial plan is well designed, stick to it because if not, the financial plan is just a plan and will not be implemented. Make this financial budget plan a guideline in the implementation of a consistent and disciplined daily handling of money.
#5 Make a reserve fund contribution
What is the difference between a savings account and a reserve fund item? The difference lies in its function and purpose. The savings are earmarked for several predetermined purposes, e.g. B. buying a laptop or printer from the savings.
Reserve funds are only for meeting or covering all kinds of urgent needs. For example, if your motorcycle breaks down and needs to be repaired in a workshop. Car damage doesn’t always happen, of course, and it doesn’t necessarily cost that much, does it?
This reserve fund is also known as the emergency fund. The amount of the reserve fund increases with the number of your family members.
Single = 6x monthly expenses
Married = 9x monthly expenses
Having children = 12x monthly expenses
Keep reserve funds in a safe place, e.g. B. at a bank, which can be easily withdrawn at any time.
#6 Learn to invest
If you have a plan for the future, you need to develop funds as early as possible. By developing funds, the interest from the performed development of funds can be used for other purposes. However, to get the best results from developing these funds, one thing you must do is learn to invest. Did you know that Warren Buffett, the third richest person in the world, started investing with his meager savings at age 11? At what age will you make your first investment then? You can start with a small risk, e.g. B. Deposits or mutual funds.
#7 Regulating Desires (Self-Control)
This is quite a difficult thing because the biggest enemy is ourselves.
When the budget has been established and determined to be in line with the budget, there are sometimes many temptations such as being invited to a coffee shop by friends and having snacks almost every day. Or when we walk in the mall, we are tempted to buy things that are just wishes.
Take control of your thoughts by focusing on your savings and investment goals. Discipline the budget so we don’t follow our passions.
From now, when again? Start managing finances regularly early on and stick to the established budget.
If not from now, then when? Make this financial management a habit in your life to become a more organized person.