Personal Finance – 5 things..

Personal Finance – 5 things to watch as a twenty year old

The average college student today graduates with some loan or debt burden on his shoulder. We teenagers already or about to be in our twenties need to know some serious skills and ways to manage our finance. Many of us are soon to be in charge of our own cash and many may have already been in charge since they were 12. But whatever the case may be, I would like to highlight what a 20 year old needs to do when it comes to their finance.

1) Be tight fisted- A single rupee can have immense value. Most of us go to fast food joints on a regular basis or you know just go to CCD for a cup of coffee or just have an ice cream from Amul.  All of these expenses seem to be immaterial but trust me if you stop doing these things on a daily basis, you can save up to Rs.20 a day or Rs.100 a week or perhaps Rs.500 a month. That is a nice saving to start with.

2) Keeping a good credit score- You can ask your parents to do it for you. Let’s take an example to understand how this can be done.  Suppose if you parents buy a car, ask them to set the auto loan on your name. This way, whenever your parents will make monthly payments for it, it will build a good credit history for you. This will definitely help you in future when you want to buy your first house at a competitive price.

3) Keep your overhead cost low-.  Internet connections, net cards, dish TV, air conditioners….life is full of necessities.  But as a student, it’s important for us to give space to only those necessities in life which truly deserve it. You may not require YouTube as much as you require TV. You may live without an air conditioner but not without a fancy phone. List down your necessities in order of priority and cut down on the ones that can wait till we start earning.

4) turn on the super saver mode- Time to time; just keep switching on your super saver mode on. Do this especially when your expenses suddenly become sky rocketing. Just start using metro instead of your car, or share a ride, get a roommate, go to free concerts, call friends over instead of going to some restro. This mode will help you avoid resorting to credit cards in a crunch. Start cooking. You must be aware that people who cook can eat inexpensively. Cook and enjoy your meal regularly. Buy the ingredients in bulk or in sale. You can save far beyond your imagination when you dine at home and not outdoors.

5) Some other ways-If you live in a hostel or PG or a flat and you are in need of a roommate, then make sure that you choose a roommate who pays rent on time. Sharing your space with the right person always helps.

Then you can open a savings account with a bank to keep your hands off your cash. When you do not touch your money, it literally grows. Do what it takes be it not owning a debit or credit card to make the savings tick.

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