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Personal Finance Tips for Students

By MicaR | Online Venture | 17 Apr 2024


There is a thin line that can separate something as genuine and something as a scam. You can the entire educational system can be a scam. You spend a lot of money to go through school, college, and university, you spend many years collecting degrees, and a huge student debt piles up, yet there is no guarantee that you will actually get a job. Doesn’t this sound like a scam?

Education has become very expensive, and for people who cannot afford to pay for education, student loans come in very handy. Student loans offer a lot of benefits, for example, flexible repayment terms, low-interest rates, and tax advantages. Student loans are also the reason why students are having financial difficulties in life

How to Make a Budget for Students

The first priority of a student is to focus on completing education. Sadly, a lot of students get involved in a lot of things from partying to spending money on useless things.

No matter what subjects students are studying, they should be working hard to improve their finances, which they can d by creating a budget.

When students start creating a budget, they will also be managing debt, cutting expenses, saving money, and investing money.

As a student, you need to understand that making a budget early in your life, helps you learn cash flow management, and build savings and investments that will ensure financial security in the future.

It is understandable that students are overwhelmed to spend money and enjoy life. However, any bad financial decision you make in your life can cost you the rest of your life.

A budget will help students to make decisions for personal needs and long-term financial goals, and at the same time stay within their financial means.

The primary purpose of making a budget is to manage your cash flow. Managing cash flow means making notes of your income and tracking your expenses so that you have spare money to save and invest. Just like everyone, students should also start making a budget so that they can start paying for their student loan debt, planning finances, start saving and investing, etc.

This post will help students to create their monthly budgets. The post covers all the basics, in addition, to saving more, making extra money, and saving on bills.

Make a list of your income, including allowances you receive from your parents, the money you make by working part-time, or any other possible income.

Note down your expenses, and categorize your expenses into three categories, very important, less important, and unimportant. Very important includes your essential expenses such as rent, food, loan repayment, etc. Less important expenses include spending on soda, coffee, etc. Unimportant expenses are all those spendings that are useless. 

Now start creating your budget. In your budget, cut out your unimportant expenses and include saving instead. You need to try to keep 20 percent of your income in your savings accounts. If you can’t save 20 percent, any amount can be helpful.

Getting a Student Loan: Is it Really Good?

Even though student loans come with a lot of advantages, they also have a lot of disadvantages. Therefore, if you are thinking about getting a student loan, you need to know the disadvantages.

Due to recession and inflation, the interest rates have gone up and the repayment terms have also become strict

You will have to pay your loan whether you complete your degree o not, whether you become employed or not. You will have to pay fees if you want to change your repayment terms.  

On the bright side, student loans help individuals to go to college and universities to get a better degree so that they can get a better paying job.

Sadly, student loans are not debts that can be written off in bankruptcy.

There is no guarantee that you will get a job after you complete your education. Even if you get a job, you might not get a good-paying job to pay back your loan. Therefore, getting a student loan comes as a great disadvantage for a lot of people.

 

How to Pay Your Student Debt

Student loans are the loans that students can obtain so that they can pay college and university fees. Student loans are not grants, therefore, these loans need to be paid. Student loans, just like other loans accrue interest, and if repayment is missed, they also accrue fines and penalties, which can add up quickly, therefore, it's important to pay these loans as soon as you can.

Education is very important for two reasons, one, to build your knowledge and widen your perspective, and two, to get a job. Therefore, going to college and university is an investment. Sadly, this is an investment a lot of students cannot afford to make. Therefore, they end up getting a student loan. The payable interest rate for student loans varies from institution to institution (normally it is lower than other loans) and is based on students’ income brackets. It’s normally interest-free until the student can start repaying it.

In order to pay your loan, you need income. Therefore, the first requirement for paying student loans is to start working. As a student you don’t have a lot of time to work, therefore, you need to choose work that requires less time but earns you more. 

In order to pay your loan, you also need savings. You can save if you cut your spending. You can start cutting your expenses, only when you know which one is essential spending and which one is unnecessary spending.

If you want to enjoy your life, pay your student loan first.

If you have a student loan, you can do the following things to pay your debt:

Start working in your spare time. Instead of wasting your time in cafes and pubs, try to work and make money.

Start saving money. Cut all unnecessary spending, cut your expenses even on essentials, and save as much as you can.

Start repaying your loan as early as you can. When you are making money, and if you are saving your money, it is not very difficult to begin your loan repayment.

Start investing. Saving money is important for loan repayment. Equally important is to invest money. You don’t need a lot of money to start investing. You can start small and make investment your regular habit.

Three Ways to Build Income for Students

If you are a student and if you want to make money without hampering your education, you should do something that does not require a lot of time and effort. Students have limited time, therefore, they should not spend a lot of time making little money. Choose something that you are passionate about, and choose something that can make you a lot of money. It does not matter whether you have skills or not because there is nothing that cannot be learned, therefore, even when you don't have skills you can spend 4-6 weeks learning and mastering that skill to start working. What actually matters is your chosen method is something you are very interested in and something that can make a good amount of money. If you are interested in videos try youtube or tiktok, if you are interested in selling old items, try eBay, if you are interested in selling digital items, try Etsy.

A student should take care of a lot of things while starting a business. For example, the business should have a low start-up cost (students are in lack of big funds) and the business should not require a lot of time to manage (students also need to study and prepare for their exams)

If you are still in school or college, and you want to make money, here are a couple of ideas for you. Interestingly, these are free platforms and you don’t have to be highly skilled

Redbubble: This is a print-on-demand platform where you can design different kinds of products and put them on sale. You can easily make a 20 percent sales commission. Let’s say you design a cool T-shirt, and ask your friends to check your product. If they like your t-shirt they will start buying. Or, let's say you start some kind of campaign at college and you create a cap with the campaign logo and slogan and put it on sale on redbubble, you ask the participants to get the cap from redbubble and you make money.

Amazon: Amazon allows you to make money in multiple ways, as a student, you can publish your notes as an ebook on Amazon and start promoting your ebook to your friends. If you are a good student, people will buy your notes. You can also start promoting amazon affiliate products.

Fiverr/Upwork: If you have skills like writing, video making, podcasting, etc. you can use Fiverr or upwork to sell your services and make money.

Bonus: You can also start making money by becoming a video content creator.

 

 

 

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MicaR
MicaR

Web Designer and Content Creator


Online Venture
Online Venture

A blog on Business, Finance, and Making Money Online. The blog offers useful and interesting articles on how to start and run a business and how to make money online.

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