Although college may seem like the last place to start saving, it is actually the ideal time. All it takes is a $100 dollars a month for a 25-year-old to accumulate a substantial amount by the time they reach their fifties. Factors such as the rate and whether they invested or saved will determine the total figure at the end of the term.
But creating wealth goes more than just saving $100 a month; it is a mindset change that needs to take place. A few basic steps will help students make a few critical decisions that are essential for wealth creation.
Think Long Term
Whether students decide to put away a lump sum amount or make a monthly commitment, they need to be prepared to have a long-term focus. Funds saved over longer periods of time have the benefit of the compounding effect of interest. They also have the benefit of outliving market fluctuations. This means that if the funds were invested and there were changes in the market, the funds have a better chance of recuperating over the long term. It also allows them to recover from any initial fees and commissions levied on the account. But they need to make sense as well. Students are recommended to keep an eye on their savings and investments, and seek professional help to ensure all is still on track.
Be The Bargain Hunter
This may not be a flattering title but when you’re thick in cash after college while your friends are paying off student loans, it will make sense. A few practical tips to save money in your college years include renting school books and becoming the next coupon king or queen. Every dollar matters and at the end of the month, it could result in additional savings.
Separate Needs From Wants
The quickest way students fall into a debt trap is by using the funds they need for the things they want. When this happens, they won’t have money left for the things they truly need. College is also expensive and many parents can’t maintain all the payments, which means the student will have to help out. A part-time job or side hustle is a great way to bring in some cash. This means that they will still be able to maintain their savings. Students who prioritise their savings and then their purchases are less inclined to spend too much money.
College is expensive even after bursaries and scholarships, but knowing where to cut the costs will make a difference. There are many opportunities to make some extra money and work is often readily available to students. Creating wealth at a college level is not just advisable, it is essential.Recommend0 recommendationsPublished in