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College is a period of personal transition, exploration, and maturing. It is also a time when one should develop learning and working habits. Students are absorbing all the knowledge necessary for their future careers. Once you graduate and begin working on your career, having good financial habits can help you greatly with managing your future plans. Many students tend not to think about how their current lifestyle can affect their future careers, thus they often fall into these college lifestyle traps.
Borrowing Too Much
Having to pay off your student loans after you graduate is a burden enough, so try not to make it harder by using your credit cards. Otherwise, it can take you years to pay them off, even if you are careful about your payments. When it comes to frivolous splurges or everyday spending by someone without an income, credit cards are not a viable option. As for the student loan, use it only to pay for your education. Don’t borrow money to fund your spring break trips or to purchase things you don’t really need, but to afford true necessities. Use your student aid for books, tuition, and accommodation. When it comes to borrowing, moderation is the key.
Too Expensive Accommodation
Every type of accommodation, whether it is private or shared, has its pros and cons. Private accommodations offer flexibility in choosing different living options and put you in charge of with whom and where you are living. On the other hand, they tend to be more expensive. Living in shared accommodation, such as student halls and communal areas, are more affordable and one can save a great deal of money just by living there. If you are a person who enjoys good social life and doesn’t mind sharing a room, than this is the best option for you. Iglu offer various affordable accommodation options in great communal areas, secure and safe environment, fully-furnished living spaces, and a fantastic events program.
Not Saving
By following a simple two-step process, you can save up some money: 1) Don’t spend more than you have to, and; 2) Put the saved money aside in an interest-bearing account. Saving money as a student, when you’re scraping by, can be difficult. Cut your spending if you have problems with keeping up with all the bills. Sell your used books on Amazon or begin with your school’s buy-back program. Then use that money to buy all your books used. Give up things that you don’t really need, such as a 200-channel cable television, new clothes, latest pieces of technology, or going out every weekend. Find room for savings by revising your priorities.
Missing Payments
Your credit score depends on paying bills on time. Creating this habit while you are in college is great, because it will also be important for your future life. Also, make timely payments if you are using cash lenders or credit cards. Always avoid late fees and pay off your debts as fast as you can.
Spending Freely
While in college, you would want to experience as much as you can – rich social life, travelling, going out, and dating. You’re concerned about the present and don’t worry about all these excesses. But can you really afford it? College expenses are big – with all the tutoring, supplies, books, and transportation – but they are your priorities. The smartest move you can make is to create a budgeting and spending plan. Plan your expenses according to your fixed income and calculate. Avoid planning on a possible future income that won’t kick in for a few years, because that trap is particularly nasty.
Pay your bills on time, spend wisely, save as much money as you can, and follow your budget plan. You will find out that these habits will be of great hand in the future, and will allow you to start your life after graduation the right way.
About the Author
Diana Smith is a full time mom of two beautiful girls interested in topics related to business and technology. In her free time she enjoys exploring new low cost advertising opportunities.
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