Money is an aspect that has a huge impact on everyone’s life. Whether you are an adult or a student, money is important.
As an adult, we understand the importance of money and are focused on budgeting and saving. But how did we learn this skill? By spending a bomb as teenagers and students and then regretting not saving.
We learnt saving money the hard way but it doesn’t have to be that way with students today.
Budgeting, saving, and investing are three areas of life that need to be managed well for a peaceful life in the future.
Let us take a look at 2 students:
One who saved and one who spent
The one who saved:
The one who saved understood the importance of money from a young age and was able to live a peaceful life.
The one who spent:
The one who spent all his money trying to buy something expensive because it made him happy, eventually went into debt and struggled.
What do you get from these two? Would you save or spend?
As a student and a teenager, it is natural to be tempted to buy things but it is all temporary happiness. The real game of money is with saving, budgeting, and investing.
The game of saving
Here are a few simple tips that you can use to save, budget and invest:
- Create a budget
For every monthly expense, allocate an amount of money. Make sure that you don’t cross that budget. Allocate a portion of your income for essentials like rent, groceries, and transportation, and designate a percentage for savings and discretionary spending.
- Save regularly:
On every occasion where you can save, SAVE. Start a savings account specifically for your long-term goals or emergencies.
Aim to save a portion of your income regularly, even if it’s a small amount. Consistency is key. Even 200 rupees is money! Save and in a year you make how much? You save 2400!
Consider automating your savings by setting up automatic transfers from your checking to your savings account each month.
- Cut expenses:
Look for areas where you can cut down on spending. This could include dining out less frequently, using public transportation instead of owning a car, or finding affordable alternatives to expensive hobbies.
Take advantage of student discounts whenever possible, whether it’s for transportation, entertainment, or software subscriptions.
The game of earning
These are a few ways you could budget and save. But here’s the game of earning money!
You could start part-time work and earn! Look for opportunities that align with your skills and interests, whether it’s tutoring, pet sitting, or freelance writing.
The game of investing
Start small and learn about the investment market. There are huge opportunities out there waiting to be grabbed by you. Start with low-risk investments like index funds or ETFs (exchange-traded funds) if you’re new to investing. These offer diversification and are less volatile than individual stocks.
Spread your investments across different asset classes to reduce risk. Diversification can help protect your portfolio from market fluctuations.
Consider investing in a mix of stocks, bonds, and other assets based on your risk tolerance and investment goals.
The game of being patient
And lastly, be patient and wait for the fruit to bear.
With these few tips, you could become the next big bull in the market!
Nalanda is proud to mention that we teach students about financing and investing from a young age to make them capable individuals of the future!
For more information, contact +91 40 2381 3997
Recent Comments