1. Living on Credit Cards
Credit cards are unavoidable when you are a student and want a comfortable life. In moderate amounts, it is even helpful because it lets you focus on other things. But too much credit card use can lead to poor decisions and even damage your financial health. If you find yourself dreading about going to a supermarket without credit cards, why not take some cash instead? Knowing how much money you spent on groceries and other useful things will give you a chance to work through your financial status and help you relieve money-related stress.
2. Taking High Interest Loans
You can’t eliminate high interests, although you can – with the help of low interest loans or special programs meant for students or at least limit its impact on your student life. As a student, you should control your exposure to high risk loans by saving money as much as possible. Among the things you can do to control risk are to battle the urge to buy unwanted things and living modestly. You may be able to take a student loan for a reasonable interest rate from credit unions as long as you make sure to repay it promptly.
3. Spending More Than You Should
Your net worth is as important as your loan. Every now and then, you should sit down and tally up your money in hand to figure out where you stand and what you can afford to spend. Why should you care about your net worth and spending? One common reason is future planning. Simply put, the more money you have by the end of the college, the more comfortable your future will be. The key to finance planning is making accurate budget for your basic needs and following it religiously.
4. Co-signing Loans and Liabilities
You probably feel you should help your friends from time to time. But that doesn’t mean you should go over board with it. It is easy to see that some students find lots of personal satisfaction in co-signing their friends’ loans and liabilities. Do not be one of them for your financial safety.
5. Being Afraid of Investing
There is no place where self-discipline plays a more important role than in investing your spare changes. You can allocate as much or as little of the left over money to a safe investment of your choice. You can even decide to go further. There are many opportunities for students in the field of investment. By investing your money, you are paying yourself instead of squandering it. You should get a decent return on the investment and risk you have invested five years down the road.