Money management is one area that is repeatedly being ignored by students of higher institutions, despite it being an essential part of a debt-free lifestyle. For a truth, thinking about money management is less enjoyable than actually spending money. But having basic knowledge of money management can help you feel confident about your ability to manage your finances. How you spend your money will, therefore, impact the amount of debt you end up carrying and possibly help you save thousands of Naira. Luckily, we are here to get you started.
Know where your money is going
In order to gain control of your financial situation, you may have to recognize where your money goes, part of having a budget. Being aware of what you’re buying keeps you accountable to your ultimate goals. Start by jotting down everything you think you spent money on last month. Next, locate your most recent bank statements to see how much you actually spent. Unplanned spending on entertainment or stuff that you don’t need makes it harder to reach the outcomes you’re going to school to achieve. So take note of everything you spend, and weigh its value against the impact it makes on your future. Ask yourself: Is it worth it? If not, just make sure it doesn’t have a place in your budget.
Set up a savings plan
We do understand that saving money for an imminent university graduate can be frustrating and a real challenge sometimes, given the fact that you may not be getting so much from your parents/guardian. But if you’re able to generate even a small income while going to school, it’s a good idea to try. You may need your savings later on when looking for work in your new field, setting up new living arrangements, or when being presented with an unexpected opportunity that requires a big cash investment. If you set aside a pay yourself first mentality, then you free yourself from a lot of the temptations to use that money unwisely.
Separate wants from needs
Undergraduate students are fond of living outside their budget limit because they probably haven’t thought about categorizing their expenses, separating what they really need from what they want. Need is something you can’t do without, like food, water, clothing etc. a want is something you would like to have, not absolutely necessary like a laptop, see a movie, or go on a trip. Separating wants from needs will help undergraduate students avoid impulse purchases and overspending.
Do not succumb to Peer Pressure
While peer pressure is a very common factor on a university campus. Students need to understand its okay to say “no” if your friends want to go out to eat, see a movie, or go on a trip, but unless you have it in your entertainment budget, don’t give in to peer pressure. Students need to concentrate on what they really want out of life in order to help them avoid overspending. Plus, if they make good financial choices, they could help their friends make better financial choices themselves.