If you are a student, you are going to be on a tight budget. You should be looking for ways that you can save money will prove to be very important during your school years and beyond. To help you out, here are 10 Most Common Student Financial Flounders.
10 – Falling prey to scare techniques
Young, eager and ferocious sales people are hired straight out of university to frighten you into taking out a credit card or insurance plan you really don’t need.
09 – Buying a financial product from a friend who has become an agent
Feeling obliged to buy a naff financial product from a friend is a difficult one, but if you can, just say “no” to your friend; they should be able to understand!
08 – Not saving for retirement
It’s very easy to slip into the mental state of not thinking about retirement, but from the age of around 30 (or maybe even younger) you need to be putting away a bit of money for later on in life. Remember: Every year that you wait increases the amount you’re going to have to save later on.
07 – Getting into tonnes of student debt
Budget well, and if you need money to keep you on until your next student loan day, take out a short-term loan which you can pay back quickly. You can also refinance your student loans depending on your situation, which could save you more money in the long run.
06 – Marriage to save your financial position
Many people get married in the UK to ensure their financial situations don’t collapse. The problem is, many of those marriages end in divorce.
05 – Financial illiteracy
Simple: get out of bed and do some research.
04 – Focusing on money
In the 21st century, money is an indicator of a person’s social status, and not just a commodity to buy things with. Don’t focus on money though; it will cause you lots of unnecessary stress.
03 – Overspending
This is a massive problem in the UK. The proliferation of credit cards and other financial products has resulted in a generation of people who spend way more than they earn. This is an unsustainable way of living however, and one which led—ultimatelyto the collapse of the housing market in the US.
02 – Bad investing
Only invest if you have enough money in the bank to back you up if the investment turns sour. Remember: investing is a form of gambling, and so it’s incredibly risky. Only do it if you can afford the risk.
01 – Not planning
You won’t be financially successful unless you plan for your future. This means being responsible, talking to your parents, your grandparents, the bank, and whoever else will let you ask them questions about money-related issues.