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Failure to find a balance between studying and working

16th February 2021 Print

Financial literacy is one of the most important things for any modern student. However, not all learners have a deep understanding of how to track their expenses, save money, and control budget effectively. We’ve collected the most common mistakes in the money management of thousands of students. Find out this list below and spend your money wisely. 

Most students combine studies and working part-time. However, some of them are forced to quit colleges to earn a living, while others might fail to get a well-paid job because of tons of academic assignments they need to complete within the shortest terms. Both options are usually frustrating and might lead to very bad consequences. Therefore, finding a healthy balance between learning and working is essential for any successful student.
But how can you earn good money if you are forced to write essays and do your homework days and nights? There is a solution to this common issue. Choose a reliable academic writing service to get all your assignments done perfectly! If you don’t know, which one to pick up, and a well-known might become excellent options. This way, you will get your college assignments done by professionals and have enough time to earn money and even build a career. 

Abusing Credit Cards 

Relying on credit cards is one of the most common mistakes of thousands of students. Many learners spend money using credit cards in an uncontrolled way, falling into the trap of huge loans. It is important to note that the failure to pay off loans on time might significantly damage your credit card history. Moreover, the banks might refuse to offer mortgages or big loans you might need to take in the future. 

No Tracking Expenses 

Most financial experts believe it is important to always track your expenses. This way, you will know how to control your budget, cut unnecessary costs, and save money more effectively. You can use various mobile apps or just make notes to track all your spendings.

No Emergency Fund 

Having an emergency fund is a must for every student. Sometimes you might need to spend a particular sum of money urgently. For example, you might need to buy a new smartphone if your mobile breaks down or got lost. An emergency fund will help you get money fast with no need to use a credit card or ask banks for loans. 

Buying Luxury Devices And Cars 

Everyone wants to be rich and successful. Many students are trying to show off the luxury they can’t afford. This is the biggest financial mistake you should avoid at all costs. It is better to purchase a used car than to get drown in a huge loan for buying a luxury vehicle. This rule is also working for gadgets and smart devices, including smartphones, players, headphones, and fitness trackers. 

Some students are wearing only brand clothes and accessories, which might be a real issue for your financial balance. Mass market products might appear to be good enough and will save you thousands of dollars. If you still want to wear Gucci, it might be a good idea to try second-hand alternatives that offer the same clothes for a reasonable price. 

By the way, expensive hobbies might also take a considerable part of your personal budget. It is better to find a more cost-friendly option or try to limit your expenses on your hobby. 

Not Having A Plan

Financial planning is one of the most important things any student should do to have a good credit card history and a brilliant future. You need to understand and control your expenses, track your spendings, and make detailed predictions on your future expenditures. This way, you will be able to save costs and spend your budget wisely. 

Most experts believe it is a good idea to split your expenses into several categories. This is also called “envelope spending.” For example, you might have envelopes for grocery shopping, rent, buying books, an emergency fund, and leisure time. This simple trick will help you keep in touch with different categories of expenses and better understand your spending habits. 

Saving Money On Insurance 

Some students are trying to save money and fail to have insurance. This mistake might not only ruin your budget but also lead to serious problems with your health. It is never a wise financial decision! It is vital to have insurance and take care of your safety first. If you don’t want to suddenly face bankruptcy because of medical bills, always buy medical insurance. This is not the option where you can save money. 

Try to improve your financial habits and learn more about planning your budget to get fewer regrets in the future. Try to avoid making these common mistakes and always spend money wisely.