Sing it with me, ~ let’s talk about financial stability, let’s talk about all the good things about saving that may be ~ Okay, so clearly I am not a songwriter… at all. But you get the point. We are all college students, some of us fresh out of graduation, and let’s be real. We still lack the understanding of responsible financing. It is no secret that adulthood is quite expensive.
Financial stability has a different definition for every body. For instance, what financial stability means to me is when I feel like money is not a burden and that is due to my awareness of what I am spending my money on. For others, it may mean that they are able to pay their monthly bills, pay off some debt from loans (which is a HUGE accomplishment for those college graduates) and still have leftover cash for that month. Here are a few tips for better financial stability:
- Try to create a monthly budget
Sitting down, seeing everything I was spending my money on and realizing that I had terrible spending habits and was throwing my money at things I definitely didn’t need in the future was… not it. My bank statements were a huge wake up call so I searched for ways to budget more responsibly and was advised to start a monthly budget. As soon as I took the time to set a budget for myself, I realized the huge benefits, especially as a college student.
Budgeting is as simple as setting a spending allowance for that month. You will recognize every tiny thing you spend your money on that you should not be.
For those of you that are constantly on your phone, the app called Mint is great for budgeting. I started using this app for budgeting and keeping track of my work. It has many different features, but if you want a great app for budgeting, you should definitely try this one out.
- If you get a refund check, put it in your savings in a heartbeat
Say you are one of those students that has extremely great financial aid and other financial support from scholarships, so you do not necessarily have to take a loan out. When that refund check comes sliding in, you should deposit it into your savings and build it up! This is a good opportunity for students to save money, which leads me to my next point.
Besides college refund checks from financial aid/scholarships, you get a huge (or small) refund check from just working alone. Tax refunds only come around once a year and are such a good gift to us students. They can help with paying off student loans ahead of time or paying for that parking pass next year, which almost costs the same as a limb.
- Save, save, and… SAVE
Saving is so crucial, especially for college students entering the real adult world. After graduation, your savings will help with that financial burden students feel. It gives you something to fall back on; however, do not take advantage of that. Sure, you see a large number in that account, but that does not mean you should use that money to fund your Bali trip. In college, it is important to build financial security as soon as you can, just in case something throws you into a deep debt hole. Adulthood has a lot of those unexpected hits.
During my time in college, I am learning the importance of financial stability and embracing that financial literacy I learn more about every day. Throughout my life, I was lucky enough to learn ahead of time from my parents and their financial stability that my reckless spending habits are not exactly going to take me far in such a money-driven world.
It is better to learn these tips when you are in college and figuring out who you are before setting foot into adulthood.