Last updated on October 11th, 2021 at 06:09 pm
We’ve realized that personal finance is something that should be learned about as early as possible.
That’s why I’ve compiled 10 important finance tips for every student. These are easy to implement and comprehensive tips that will help you in the long run. Let’s jump right in:
1. Save Early
So many students put off saving. “I don’t have the time.” “I don’t have the money now.” “I’ll save later when I am better off.”
The truth is that these statements form a habit of putting off saving. The earlier you start to save, the better. It allows for your money to have time to grow. Saving while you are still in school is a great way to start compounding your money and building long-term wealth.
2. Learn How to Invest
The next step is learning how to invest. Learning how to invest is crucial to growing your money. You may feel like you are busy now, but you truly won’t have time to learn when you start to work. It’s actually incredibly easy to open a brokerage account, so as a student, it’s the perfect time for you to begin!
Learning how to invest can be done through reading or through YouTube videos. There are even people on Tiktok who teach how to invest. The earlier you start, the better off you’ll be.
3. Start a Side Hustle
For most people, a primary source of income is not enough to fulfill their lifestyle and to help them retire early. This is why it’s so important to start a side hustle. All a side hustle is something you do on the side which generates money for you. Some ideas are:
- House cleaning
- Dog walking
The earlier you start, the easier it is to scale it. The goal is to start a side hustle you love, then to scale it until it makes more money than your actual job, then to quit your actual job and be financially free!
4. Open Tax-Deferred/Free Accounts
In almost every country, there are tax-free/tax-deferred accounts. When you invest and make money, you are subject to capital gains tax, but these accounts basically save your money from that tax.
In Canada they are called TFSAs and RRSPs, in America, they are called IRAs and 401Ks. Make sure to open accounts in your respective countries and invest as much money as you can in them. Tax-deferral is magic that could save you tons of money and help you build lifetime wealth.
“It’s not what you know, it’s who you know.” This statement could not be more true in a time where over 70% of jobs aren’t listed. If you want to expand your prospects for the future, you need to learn how to network.
Networking is actually really easy. All you need to do is find the courage to walk up to someone and talk to them. You just make friends and genuinely care for people. It sounds simple, but networking will help you tremendously in the future.
Budgeting is crucial for financial success. It’s like a plan that tells you exactly where you’re going and how you’re going to get there. Learning to budget is key to building wealth over time.
A few easy questions to the first answer are:
- How do you get the money?
- How do you spend money?
- How much money do you get?
- How much money do you spend?
Write out your answer to these and then assign a dollar value to every item. Then see if anything needs to be changed for you to meet your financial goals. Change it and stick to the plan! This is your first, fully functional, student budget.
7. Meal Plan
So much money is spent on food needlessly. Oftentimes your school will have a pre-established meal plan: use the meal plan! If they don’t, still try to do bulk shopping to avoid spending tons of money on eating out.
A few bulk meal ideas for you:
- Beef, veggies, and rice
- Chicken, salad, and bread
- Pasta, chicken, tomato sauce
8. Make More Than You Spend
This one sounds self-explanatory but so many people don’t follow it. The reason? Credit cards. Credit cards make you feel as though you aren’t spending money when in reality, you fully are. Be wary of bad credit card debt as it could drag you down for a long time.
Making more than you spend is the simplest rule to follow if you want to build wealth. As long as you consistently make more money than you spend, your net worth will go up. The two rules for building wealth are:
- Make more than you spend
- Invest the difference
How quickly you attain wealth is based on how much more you make than you spend, and how wisely you invest the difference.
9. Listen to Podcasts
Podcasts are some of the best ways you can gain knowledge on any topic in the world. Furthermore, they are fun, light, and way easier to handle than long books.
A few of my favorite money podcasts are:
- The Investor’s Podcast
- Bigger Pockets
- Investing for Beginners
Be sure to check them out and you are sure to grow your financial knowledge!
10. Take Action!
You can listen to all the books in the world and be the most knowledgeable person on finances ever, but if you don’t take action, nothing will happen.
Hopefully, I have motivated you enough to take control of your finances and take action a while early. Being a student presents you with a tremendous opportunity; take advantage of it!
To recap the 10 Finance Tips For Students That Will Build You Wealth:
- Save Early
- Learn How to Invest
- Start a Side Hustle
- Open Tax-Deferred/Free Accounts
- Meal Plan
- Make More Than You Spend
- Listen to Podcasts
- Take Action!
So, what are you waiting for? Start now and your future self will thank you!
Thanks for reading through this post! Super grateful to FinanceGab for letting me guest post here; definitely check out more of their blog!