College is one of the most important phases of everyone’s life as it provides experiences that are most valuable at a later stage. It is important to start being careful about money at this stage as there are greater chances to yield to temptation when you are a freshmen. Having finished four years of Engineering, i am reflecting upon the mistakes i had done and wonder how not making them could have enriched my life. But no regrets!!! Sometimes people have to make mistakes to learn the most important lessons in life.
As i was recounting my experiences in college, i thought why not make a post for freshmen on how to save money while on campus. This especially would be useful for students who stay away from home.
Be Vigilant:
From day one be cautious about money. Its a simple math as i have been repeatedly telling, spend less than what you have or if you want to spend more, earn more than what you spend. The choice is yours. Start preparing a budget. Personally i love the concept of writing down what i want to do with the money i have, gives me a sense of power .
Let your excess money earn for you:
Link your checking account to an high yielding online savings account. Let the money that you do not use, help you earn more. Have the habit of monitoring your account regularly. Using an online money management software to track your income and expenditures is a good option.
Be careful about credit cards:
Your campus would be lined up with offers life freebies for credit cards. Do not fall a victim as the interest rates would be higher. If you are a kind of person who knows the difference between conscious spending and impulsive spending then opt for a credit card and pay your bills on time. This could have a positive effect on your credit report and help you while acquiring a mortgage.
Make use of Benefits:
As a student you would get a lot of discounts. Be it on books, gym, music or food make maximum use of it.
Grab any Opportunity for Work:
If you have free hours , take a jab. You could teach for a few students and make money. Once you start earning a regular income, you could start contributing to your IRA. The earlier you start, the better.
While keeping in mind all the above, make the maximum use of your time to acquire knowledge. Do not forget to have fun but make sure you do enough to completely deserve the fun.
