So, what about the chapters that are not always theoretically taught but learned with experiences? Like the lessons, we needed on managing money.
We recognize the learner in you, and would like to share some major and classic financial lessons every youngster should know! These lessons will help you excel in savings, increase your financial literacy and never fail the ultimate exam of managing your finances.
Let’s look at some financial lessons
Lesson #1: Savings are a must
Just like a stable income completes one’s current needs similarly, savings help you complete your future needs!
Managing your personal finances begins with the habit of savings. These untouched funds bear fruits in the future so that you don’t have to bail on your plans because you’re short of money.
Financial advice that tags along with savings is a sense of security and comfort. It helps you take control over your expenditures with ease and smoothness.
Whether it’s an unforeseen situation or enabling long-term goals like higher education, setting up a business, buying that dream car, etc., a sufficiently saved fund can help you act on it swiftly and flawlessly.
Lesson #2: When needed, live on a budget
Financial advice that can help you become a disciplined spender, is ‘Understanding the difference between a need and a want.’
However, one can achieve this if you are hard-working and smart.
Needs are something that you can’t do without, even if the times are tough. Rather than getting in situations where you would have to compromise on your needs, start living on a budget today.
Spend on the necessities and don’t overspend a penny than your budgeted list. Personal finances vary from one individual to another, but while beginning the journey of financial independence, mindfully listed expenditures can be beneficial.
Lesson #3: Normalise working as a student
One of the important and modern financial advice for the new generation is to ‘Start Early’.
This means that as a college fresher and student you can start with part-time jobs and internships that can help you begin your financial journey.
These selective work options will help you gain practical exposure to how the world outside the classroom works. Stipends from these working styles can act as your pocket money and you can take charge of your minimal expenses. By doing so, you get a sense of control over your personal finances.
Lesson #4 Make financial goals for things that matter
“Anything of value neither comes easy nor free”- financial advice that can help you stay focused always.
Future goals like owning a house or a vehicle, old age security, world touring, etc., are goals that require pre-planning and huge funding.
To start with, you can set up small achievable goals to save money, like saving 500 rupees at the end of a week! You can also opt for short-duration funds that can keep you on track and motivated.
Q1 What are some easy-to-manage secondary jobs?
There are many secondary jobs that will help boost your income.
- Freelance Jobs: You can work as a freelance writer, photographer, management person, and other occupations that you always wanted to take up as a hobby but couldn’t do it.
- Service-Industry Jobs: You can always serve at a fine restaurant, café, assist at a supermarket, and improve your personal finances.
- Seasonal Jobs: You can work as a coordinator at seasonal or event-based jobs like summer festivals. This can help you be occupied and engaged even during your vacation time.
- Caregiving Jobs: Assisting teachers and staff at a kindergarten or being a caregiver for a senior citizen. This can help you earn smart pocket money at the comfort of being indoors.
Q2. How to strictly follow, ‘living on a budget’?
Well, making a plan is always easy, the difficult part is adhering to it. Preparing a budget is only the first step when we talk about living on one. The best way to follow this and make it a reality is by doing the below steps on a daily basis:
- Be precise and prepare short goals: Don’t be too hard on yourself initially. Give yourself breathing space and a chance to boost your will in the first few days or weeks. Instead of saving big amounts, try saving smaller ones first. For eg, start with sharing OTT expenses with your friends and family. You can share Netflix, Hotstar, Zomato Gold, Spotify and save your money by not individually paying to every platform.
- Be consistent: Nothing is possible without being stable and consistent in it. In order to achieve this, you will have to be strong-headed.
- Be honest to yourself: We are always attracted to ‘cheat days’ but while living on a budget, such leisures can hamper your finances. To experience the fruits of your labor, you shall be true to yourself and try sticking to the plan as much as possible.