It is enough troubles to be a student especially in higher institutions. The stress you undergo to come out with good grades in every exam can not be underestimated. Think of the days you’d go on fasting so as to save up for an important handout in class. What about the days you sleep hungry due to a project you have to pay for? That is why you can not afford to fall into money traps that stylishly takes away student’s money while on campus.
Written for you here are five money traps and how you can avoid them.
1. Spending On Things You Cannot Afford
A lot of times you are tempted to keep up with the Joneses and own the latest things like some of your classmates. But it is advisable to know your limits with money. Spending money on things way beyond your income or budget will lead you into debts or constantly make you broke. It will not only affect your student’s life on campus but also leave you with no savings.
Learn to live within your means, month after month and spend less. You’ll find financial freedom in doing so than always trying to keep up with others.
2. Investing In Opportunities You Do Not Understand
Investment is good. No one is disputing that. However, before you make any investment, it’s advisable to do some in-depth research into the investment opportunity and the organization/individual behind it. A lot of Ponzi and fraudulent schemes have been invented of recent and it is to target inexperienced investors like you – that is if you don’t make your research. And it is good to stay away from any scheme that is not transparent to the public.
Do not fall for quick money schemes, it has jeopardized a lot of lives. Make a detailed research on any investment platform before committing any funds to it.
3. Loaning Emergency Funds to Friends
There is nothing wrong with being generous especially if you can afford it. But please as a student, do not loan out any amount of money you can not forgo. You should be calculative of how lending out money at a particular time will affect your finances. If it’s going to disrupt any plan, let’s say impromptu class project or trip, then you shouldn’t loan it.
Some people are so bad with debts that they will not pay you on agreed time. So you should not trust your emergency funds with such people.
4. Not tracking your money.
This is not about being clingy to money. Tracking your money will give you greater awareness of your spending habits and what you’re actually doing with your money. You may think you’re being sensible with your money or lifestyle until you start taking record of your expenses.
Maybe you will realize that the junk you grab for lunch, the interest you pay on debts, the amount of gas you use in a month are not all worth it. Keeping track of your money will reveal a better way of spending your money to you.
5. Not setting financial goals.
Just like anything else in life, making plans for your money is important. It will help you to set the parameters of your budget, give you saving focus and how to prioritize your basic needs and wants.
Not knowing the loophole in your finances can get you broke long before the middle of every month as a student. Now that you have some money traps listed for you, it is good you avoid them as much as you can.
How have you been playing the frugal one on campus? Mind sharing it with us here?