7 Smart ways to save money as a College Student
The importance of saving money cannot be emphasized enough. After all, all big things have small beginnings, and every drop makes an ocean. As a college student or a young adult, saving money early on has its own benefits. Like many other things, saving is a habit that is best inculcated early in life. This is because it can help you invest early in the long term to grow your wealth and also meet your goals easily. For example, learning how to save money can shield you on a rainy day, help shell out emergency expenses, and also arrange for a down payment of your first scooter or car.
Tips for saving money as a college student!
Now that we have established how important it is to save money, here are some tips for students and young professionals on how to save money as a student and as a young adult.
1. Prioritize your needs over wants:
Many students and young professionals do not understand the difference between a want and a need and end up spending all their money on want instead. By the end of the month, they have no money left for even bare necessities. If you spend all your money on wants such as eating at your favorite eatery, you will not have enough for your absolute requirements such as books, travel, and tuition fees. Hence, a small habit of saving pocket money will go a long way, and only spending on needs will also save some extra money for leisure.
2. Avoid bad loans and loans with high interest:
Rule no. 1 for borrowing a loan or using a credit card is ensuring that you repay the due amount on time. This is because if you do not pay back the loan or credit card bill on time, it will not only lead to greater interest later but also affect your credit score. This may disqualify you from borrowing loans in the future. Further, high-interest loans should also be avoided. Instead, do your research and opt for loans which allow flexible repayment schedules.
3. Ensure that you have a budget:
Budget may seem like a complicated term. But it's really not. Budgeting is simply keeping track of your income, expenses, and future cash flows, and keeping track of the money you spend and the money you earn or get as the allowance is extremely important. In fact, learning how to spend money wisely is the first lesson in saving money. Many apps and organizers, such as expense managers, are available to help you keep a record of your spending and income. These records can help you learn from past mistakes and save wisely in the future. Can you expand your budget? Yes! But how to make money in India while being a student? By applying for an internship, part-time job, etc., these are some ways college students can earn.
4. Spending excessively:
Taking the point related to “needs and wants” further, sometimes, it so happens that college students and even young working professionals are under pressure to spend on things that are not necessary. Many a time, this is because of peer pressure. If you feel you're not spending wisely, rethink your choices. You could very well do it with a simple home-cooked meal than eating at an upscale restaurant. These choices can help you figure out how to spend money wisely, and the right choice can help you save pocket money or a good amount of your salary.
5. Taking advantage of free facilities:
As a college student, there are many perks you get, such as discounts only by showing your ID, be it a discounted membership at the gym on the campus, or buying books from certain stores. This can help you save pocket money to a great extent. Also, students should take advantage of scholarships to save money. Young working professionals also get discounts at certain eateries and stores on showing their company ID as part of promotional campaigns. Preferring to visit these affiliated stores for leisure or shopping is one of the best ways to save money in India.
6. Choosing your basic amenities wisely:
College students tend to overspend on basic things like accommodation, which they can easily get on-campus for much less. A place that is shared with friends is also a good idea rather than shouldering the entire rent. This applies to working professionals too. Further, for both college students and young professionals, using public transport or shared transport than using your own private vehicle can help you save money. What's more, it is also great for the environment.
7. Indulging in some cost-free fun:
Whoever said all great things in life cost a lot of money is mistaken. Think about it: did the most memorable moments of your life cost money? More often than not, the answer would be no. Indulge in activities that bring joy and not material happiness. This could be having a quiet time with a book or hanging out by the beach with your close friends.
A bonus tip for students on how to save money is to have a side income. While in college, you can pick up opportunities, such as helping your professors in some research work.
What are the Benefits of Saving Money
As a college student or a young working professional, you may be wondering what the benefits of saving money are? Well, the benefits of saving money can be realized immediately and more so, over time.
For starters, saving money becomes valuable for anyone because it gives you the time and option to earn returns, whether the saved money is in the bank account earning interest or invested elsewhere, such as in the stock markets. The benefits of saving money for students and young adults, in general, are even more. This is because you are still young and have more time to multiply your money.
The saved money can come handy if you are saving for a trip or even for an emergency fund. It is perhaps the first step in becoming financially independent and not just relying on your parents or job to earn money, but rather make your money work for you. In fact, by saving and making smart investments over the long term, you can achieve many financial goals like buying a new car or home. Thus, saving is a necessity and not an option.
Saving money can also serve as a great learning experience as you grow older as you will be required to make many financial decisions and have responsibilities towards your family.
How to avoid bad loans?
College students have recurring expenses such as travel, food, and hostel fees, knocking at the door while managing their leisure expenses such as eating out, watching movies, etc., which may not be fulfilled with the allowance they get. Young working professionals also spend on travel, eating out, etc. Further, some may also have emergency needs such as medical expenses for themselves or the family.
Due to the nature of these expenses, a lot of times, students and young professionals go through a cash crunch and are in need of urgent cash. When they are unable to pay back the loan at such high-interest rates, they end up with bad credit.
This is where mPokket comes to the rescue. mPokket has been supporting students and young working professionals in their time of need by giving them instant loans at nominal interest rates. In fact, mPokket has already lent to more than 5 million users and is preferred by millions of young users across India. It's the best instant loan app for college students and young working professionals.
Borrowing through mPokket is super convenient! mPokket provides instant loans for students and young working professionals through the convenience of an easy-to-use app. All this, along with 24×7 support.
Applying for an instant loan is as easy as it gets with mPokket's instant loan app for students and young professionals. All they have to do to avail the loan is download mPokket's in India, provide the necessary information and wait until the loan is approved.
Once the loan is approved, the money is directly disbursed in the bank account or PayTM wallet, based on the applicant's preference.
What's more, the loan requires minimal documentation. The documentation process for availing the instant loan for college students and young professionals is hassle-free and completely paperless.
mPokket understands the challenges that young adults face when it comes to short-term and urgent cash needs and also offers these instant loans at nominal interest rates. It is, therefore, among the best instant loan apps in India, for students and young working professionals.
If you are in need of a short-term loan and want to borrow some cash, look no further! Avoid loans that come with hidden charges. Instead, download mPokket, the best instant loan app for students and young working professionals today!