5 Tips for students of personal finance management

 Traditionally, every student starts to earn their own money during their high-school years. Even if they are still minors, the pocket money they receive is considered as independent income for them. Naturally, this financial independence leads many students to spend more than they can afford. The worst mistakes are made by those young people who come from families with low incomes or unstable financial situation. If you want to start your personal finance management strategy on the right foot - do not forget to follow simple tips.

1) Never touch your emergency fund!

It is very unlikely that you will need all the savings that you have worked so hard to accumulate just because you decide that now is a good time to buy yourself the new iPhone 7 Plus. So do not fool yourself! For things that are truly important, you should use your savings. But only after you have actually saved the required amount for them within your investment plan.

2) Avoid unnecessary expenses!

It is okay to spend money on things that make your life more enjoyable (and yes - it includes shopping!). However, you should always try to prioritize the quality over quantity when it comes to your everyday purchases (e.g. food). Not only will this save you a lot of money in the long term, but it can also be very helpful when choosing which courses to enrol for next semester or what career path to choose afterwards.

3) Stick to simple meals!

Rather than buying loads of different ingredients and making complicated dishes, try to stick with simple meals. Making your own food will almost always be cheaper than buying it in the shops, especially if you opt for packed ingredients (e.g. rice+soup) instead of prepared food (e.g. instant noodles). This way you can also control what you eat - which is especially important when starting out on the journey of personal finance management.

4) Learn how to save yourself!

Life is full of surprise and unexpected expenses (that's where credit cards come handy!). But there are many simple things that you can do yourself without spending any money at all (e.g. repairing your clothing or fixing minor defects on your property). If you still do not know how to do them - use the invaluable resources of the internet!

5) Understand your responsibilities!

Being financially independent is not just about managing your money, but also about handling the consequences of every decision you make. If you do not respect this rule - it can cause serious problems for you both at home and in your studies. You should be able to take responsibility for yourself, even if that means accepting advice from those who know more than you do (e.g. parents). It will be hard in the beginning, but very soon you will learn how to properly manage your money and how to react when life throws a curve ball at you.