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Personal Finance Tips for Students

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Written by   179
2 months ago

Why Students Need to Start Budgeting

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.

How to Pay Student Loan Fast

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.

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.

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.

Generating an Income as a Student

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)

 

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Comments

True, when you go to college, especially when you're not well-off financial is always been an issue. Sometimes you get stressed out thinking if your tuition will be paid when your parents doesn't have a stable job, plus the fees in school. It is really important to budget, but what if you don't have enough money to budget? Right? So right now, I just go with the flow despite adversities I encounter.. They say money can't buy happiness, but in reality without money you can be fully happy as you would get stressed out thinking for a way to pay your obligations.

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