Since they do not know how to manage their finances well due to lack of previous experience, it is a challenge to keep the expenses under control for the students moving from their family for the first time to take higher education in big cities.
“High school life is very exciting and scary at the same time. Living alone will be difficult for students, but can be done easily. There are some financial tips that will make your experience of living alone a good one, ”said Prashant Sawant, co-founder of Catalyst Wealth.
So along with surveys, they need to learn how to keep their expenses within the amount their families send.
Sawant lists the following steps to learn how to manage your finances well:
To learn the meaning of money
The pandemic has taught us that the future is unpredictable and financial planning is very important, especially for a rainy day. Understand your spending pattern and then manage your money around it.
Creating your own budget
Plan your budget in such a way that you keep funds aside for your rent, supplies, electricity, food and other necessities. Budgeting your expenses will help you decide how much money to spend on other expenses. It is important to pay off your debt and maintain a good credit score as this will be helpful later in life when you are planning to scale up your business.
Work while you study
If you are facing financial problems, the best way to solve them while studying is to get yourself a part-time concert. You get extra money and your free time is spent constructively.
From the money you have after paying for important things, you should save some money. Try your best to save at least 10 percent of it.
Invest the saved money
If you are planning to invest your savings in the market. It is very crucial for young adults to be in touch with a financial advisor. They will advise you on tax, high interest savings bank accounts and how to invest in the market.