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Money Tips College Freshmen Should Know

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Money Tips College Freshmen Should Know

Take note of some of these tips, as some of them will serve you well later in life too. Money tips are needed in college because students have severely limited funds, but many of the tips can also be used as you get older.

Share car journeys, especially to the store

This is a tip that will save you money in the long run. When your student friends are going to the grocery store, share a car ride, with each person chipping in for gas. The more people that go, then the more economical the journey becomes—meaning that all of the students save money.

Keep your money in the bank

Money is safer in a bank than in your shared housing or dorm. Theft is a problem everywhere, and not just in colleges and in dorms. Criminal sorts are attracted to colleges and college dorms, where trusting or drunk students are ripe for the robbing. They will take anything from your car keys and laptop, to the loose change you threw on your desk. If you live with other students or share a dorm, then your housemates/roommate’s next lover may be a criminal on the job.

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Having money means not spending

How rich a person becomes has less to do with how much they earn and more to do with how much they save. The reasoning behind this could fill a best UK essay. Suffice it to say that the money rich people have is through the money they have not spent, and yet your mind has been conditioned to spend, spend, spend. Test yourself and your friends to see how conditioned they are. Ask them, if you won $20,000 tomorrow, what would you do with it? If they do not say, “save it” or “put it in the bank”, then they are conditioned to spend.

As soon as most people get any money, they instantly start deciding how to get rid of it (spend it). And, the chances are that most of your friends would start listing off the ways they would get rid of their money as quickly as they got it.

Snack if you must, but snack cheaply

Convenience food is the enemy of the student. If you want to save money, then get into the habit of having three meals per day and no more. Make sure that they are substantial meals that fill you up so you won’t be tempted to snack during the day, which is going to cost you money.

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Don’t sell anything

This tip is short because it needs to be remembered. Students will often sell their items to fellow students on eBay and Amazon, and they think that they are being shrewd, in fact they do not realize they are losing money.

If you were to write an essay on economics, you may first take note of assets. Each item you own is an asset and has its place in saving you money. You may think that selling twenty of your DVDs may bring in some quick cash, however over the next year you are going to become bored. And, one of those DVDs may have helped stop you running out and buying other DVDs, or console games, or may have provided you and your partner with a cheap night in, instead of an expensive night out.

Only sell items if you are sure you can make a lot more than they are worth, and then repurchase them cheaply so that you may keep the profit.

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Keep your car well maintained

A lack of oil is the difference between yearly maintenance and having to buy a new car. The air in your tire will dictate how much fuel your car uses. Having your boot or car filled with items you do not need will cost you money in fuel. In Britain, a study proved that simply having a moustache will cost you $15 per year (based on the extra weight, and adjusted for current fuel prices).

Learn how to swap and borrow

Do it with people that you trust. The worst thing you can do is lend to a person who purposefully, or accidentally, forgets you have leant them something. Swapping console games and DVDs is a great way of saving money. As is lending and borrowing things such as video camera, professional cameras, cars and even space in a freezer.

Energy creation devices are too expensive

A solar-powered mobile phone battery charger may seem like a wise investment, but it is not. The cheap Chinese-made ones are only trickle chargers to keep the battery topped up (read the small print on the instructions). Any device that will charge your phone battery from dead, and then stop charging when it is full, is going to cost you a lot of money. Similar devices are equally as ineffective, such as phone and laptop chargers that use kinetic energy.

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Gather in groups

You will find that you do not need the pubs, cinemas, or other entertainment facilities if you gather in groups of friends. Many happy hours may be spent on the grass watching your team or just having a chat with friends. Many groups of happy teens have spent hours having a Jackass movie marathon and maybe having a drink every time the little fella comes on screen (he is the only reason those movies are watchable).

I hope these tips will be useful for you and you’ll be able to save some cash and learn how to spend your money and time wisely.

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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