You don’t need to have a well-paid job before you are able to take charge and improve your personal finances. Many students postpone saving till when they get a job, while others are looking forward to a better paid job before they ever think of saving. You shouldn’t wait for that long. You can always start from the little cash you have even as a student. Better money management entails reducing spending, improving the ability to invest and save, and achieving financial goals. To get started, here are 10 tips for students and professionals;
1. Create a Financial Calendar
Whether you are trying get your debts under control or just looking for a better way to keep track of your spending and bills, a financial calendar could be a great source of help. This will help you to set financial goals and save for huge projects. Often, people make to-do lists and daily plans but rarely will they plan for their finances on a daily basis. Having a financial calendar makes you proactive and you will be reminded about your bills.
2. Track your Net Worth
Your net worth is the value of what you own less everything you owe. It’s actually a snapshot of your financial situation. Knowing your net worth will best define your assets and liabilities. This will help you to cut down on your liabilities. It also shows you where you stand, what to focus on and where you’ll like to be. This is so motivational and encouraging to continue with a financial plan.
3. Prepare a Budget
A budget is a summary of income and expenses for a given period of time, which can be daily, weekly, monthly or yearly. This will keep you organized and gives you more confidence in any financial decision you make. Planning and monitoring your budget will help you to identify unnecessary expenditures. Some key steps involved in creating a budget are:
- Define your goals
- Identify your income and expenses
- Have a spending plan
- Take action on your plan
- Monitor and evaluate your plan periodically
4. Meditate daily on your finances for a minute
According to ROBERT PALMER’s show on ‘’ Saving thousands’’ setting a minute each day to think about your finances is very important as it enables you to identify problems immediately. With that you will remain conscious of your goals and daily spending. It is important to take this time each day especially if you are struggling with your finances. You can think of ways to improve your financial situation. This can save you millions. By the way, here are 10 things you could stop wasting money on.
5. Draft a Financial Vision board
Most people need motivation before adopting better money habits and having a vision board helps you to stay on track with your financial goals. A vision board gives you the actual picture of what you want your finances to look like. Watch this video to learn how to create a vision board for your finances.
6. Set Specific Goals
Setting short-term, mid-term, and long-term financial goals is an important step toward becoming financially secure. Set SMART goals with respect to your money. These specific money goals can be how much you want to save and by what date. How much debt do you want to pay off and when? It could also be saving for retirement.
7. Banish Toxic money talks.
Having positive phrases will bring you to a self–fulfilling prophecy. Meaning you won before you even started. This is motivational to keep you focused on your financial goals. Avoid making statements such as “I don’t have money”, “I can’t afford it” or “money doesn’t grow on trees”. Rather ask questions such as: “How can I afford it?”, or “How can I increase my earnings?”, to motivate you to improve your finances.
8. Get a Money Buddy
According to a study, those with similar traits can pick up good habits from each other and this is applicable with money too. Get to be with or around those who have good money habits. This will build a desire in you to improve on your personal finances.
9. Evaluate Purchases by Cost per use
When making purchases go for those things that are useful and durable. This will help you to save more as you avoid unnecessary spending. Cheap often tends to be expensive. You should prioritize quality over quantity. Spend a little more to buy something that you’ll use for much longer. There’s a difference between the price of a product and it’s cost (link price vs cost). Check out this video to learn the difference and how to take advantage of it.
10. Start Saving ASAP
Many people like procrastinating and this actually takes them nowhere. It’s good to take action now. Money saved today will grow over time. Consistently saving will build the habit in you. The earlier you start saving, the earlier you can take advantage of compound interest to grow your money exponentially. Besides procrastination, learn about these 10 other common mistakes youths make.
We hope that you were inspired by these to improve your finances. It’s up to you to start applying them today and see the difference in your life. Please share these with your family and friends to help them too. Also, SUBSCRIBE to our blog for more enriching content. Thank you for reading and until next time, BESTech remains your BEST bet.
Sources: www.financegirlforlife