You must be gearing up for new adventures as you head towards your new university life. It awaits you a totally new personal and financial experience. Yes, you need to pull up your socks to get smart with money matters. It is because you will be dealing with the related matters on your own from now on.
Therefore, keep an eye on every financial decision that you make. Be it- buying stationery stuff. You should understand that spending more than the needful may affect the budget. The blog lists some of the most common money mistakes that you should avoid as a student. It may help you if heading towards a new university life or struggle with managing money as a learner.
Which financial errors should you be aware of in any situation?
The most common mistakes that students commit are not having a fixed monthly budget. It leaves you with no money by the end of the month. Managing emergencies in such situations gets challenging.
Therefore, decide how much you can save given your income and money bills. Set aside that amount in a separate savings account. Doing so consistently may help you save enough for any unplanned expenses. Here are other financial errors to avoid:
Not earning in free time
Well, you may feel like you don’t need to earn as you get support from guardians. However, as the university expenses increase, you cannot depend on them for everything. Moreover, starting to earn early may help you gain experience in what you can do better.
It grants you the opportunity to know what you may excel at. Moreover, having extra cash apart from what you usually get from your parents proves helpful. You no longer need to depend on guardians for small needs. Instead, a job grants the individuality of dealing with things.
Applying for credit cards unnecessarily
Undoubtedly, credit cards help you buy items without paying up front. However, it comes with huge costs, which may disrupt your budget and credit score. Identify and apply for credit cards that you benefit from for the long term.
Don’t rely on one just to take advantage of the introductory phase. Later, you would need to pay off that credit card, too. Moreover, avoid using credit cards for small stuff or urgent cash needs. Instead, check affordable loans for young people online.
These loans are ideal for 18+ individuals with a valid bank account and identity. You must have a part-time income of at least to get a loan. Otherwise, you may not get one. The loan may help you meet any small requirements cheaply than a credit card.
Moreover, you always know how much you need to pay every month as an instalment. There are no surprises. Instead, a loan helps you build credit or payment history, which eventually boosts your credit score. It is ideal for students who want to begin their financial journey on a good note.
Using a credit card to withdraw money
It is again one of the costliest mistakes to commit as a student. Never use an ATM to withdraw cash from a credit card. It may look like irresponsible spending. Moreover, down the line, a bank sees that you have been using the credit card to withdraw cash.
They might be concerned about your money management. It may look like you resort to a credit card, in any case be it has minimal cash requirements. This hits all the negative nodes from a loan provider’s perspective. Thus, they may deem your profile as financially unstable for a loan. You may not get one.
Not negotiating your salary
It is the biggest mistake that individuals commit while getting interviewed. Never underestimate your capabilities and skills. Be true to what potential you can bring to the table and negotiate. Yes, it may require you to go an extra mile to explain your position. Don’t hesitate and put forward why you deserve a certain salary.
The best way to convince the interviewee of your potential is by revealing a good portfolio and resume. It must uphold the best aspects that make you suitable for the job. Alternatively, identify the cost of renting, food, and other basic needs. If the salary does not help you cover that, you must negotiate with facts.
How to negotiate your salary:
- Start with a number that’s higher than the offer and meets your expectations
- Ensure that there is enough room for negotiation. Don’t set unrealistic expectations.
- For example, if you are getting £25000, aim for £28,000 at least, given the experience and skills.
Lending money to friends as almost broke
Having a heart of gold is rare. However, it should not prove to be an exploitation of your financial stability. It is about restraining yourself from helping everyone around you. Lending money to your friends when you are struggling with rent is not a wise decision.
You may pay at that time, but regret it later as you may face eviction. Therefore, you need to balance your thoughts regarding helping others financially and ensuring stability in finances. Otherwise, you may struggle hand-to-mouth soon. It is about prioritising the expenses when you are left with limited savings. Precisely, keep your purse to yourself if struggling financially.
Having too many subscriptions
It is something that many youngsters could relate to. It is indeed amazing to have access to the top-most OTT platforms and binge-watch. However, do you get enough time to watch it all in one go?
If not, you are wasting money. Instead, you can short-list the top OTT channels that you watch and buy subscriptions. Moreover, yearly plans are rather cheaper than monthly. Compare costs and then purchase one. Check and define when you would watch it? It will help you make sure that the subscription will not go to waste. Instead, check how you can use the money that you save on OTT the best.
Bottom line
These are some of the most common mistakes that students commit financially. It is about addressing the errors, improving, and refining the aspects. You may not be habitual to following a budget, but doing so actually helps. It may be a great way to reach your short-term goals without any financial hiccups. Additionally, restrain yourself from using too many credit cards.
