Never Be Broke: Manage Your Budget Wisely

Student and Money

Are you the best student on your course writing essays all nights long, getting all A’s but still short on cash? Or, maybe, you do not pay too much attention to studies because you prefer to build your career while studying a college, however, this does not give you an opportunity to be well-off. You might be surprised, but I can assure you that in both cases your bank account has a chance not to be overdrawn. Do you want to know how? Read this article attentively and remember the basic principles used by rich people all over the world. 

An Opposition Between the Rich and the Poor

The Rich and the Poor

Both of these categories are not judged by people from neither positive nor negative side. However, most us wish to belong to a group of “the rich.” Basing on the belief that all humans are equal by their nature; therefore, they have the same abilities for earning as much money as they need. Nevertheless, some people can be richer than others.

Also, there is an eternal issue (students will understand it well) that we depend on money. We might not even love it too much, but we need this tool just to survive in the modern world – food, accommodation, clothes, health and even communication are almost impossible if you do not invest some funds in them. The dependence on money is strong, in fact: think about that easy feeling when you have some extra cash in your pocket, and all the bills are paid and compare it to the feeling when you need to pay your loans. The second situation can be avoided when you develop correct spending and earning habits.

3 Types of People

When we are discussing the habits of spending money, people all over the world can be divided into three categories:

  1. A deadbeat. Usually, this is the person who is used to spend all the money earned without having a single penny left. They receive their salary like an injection and waste it long before the next injection is given. What is more, they are accustomed to spend money in their head long before they get it.
  2. A scoundrel. This category is characterized by the habit of spending more than was earned. For example, the person gets the salary but typically it is not enough for them to cover all the expenses and they need to use the money of others – take credits, loans or use some not always right methods to get what they want. The second category is even worse than the first one: the deadbeat is an honest citizen, but the scoundrel can bring harm to other people.
  3. A man of fortune. This last category is considered to be the best one – the man of fortune always earns more than they spend. Therefore, at all times they have some reserved funds for the cases when they cannot earn enough or have some unexpected expenses. Factually, this is the group of people where you can get only if you know the basic rules of financial wellbeing.

How to Become the Men of Fortune: 5 Basic Laws

Wellbeing
  1. Take control of how much you spend:it is not always pleasant but will help you a lot. We often waste money for the things that we do not really need. For instance, you do not always have to take a taxi when going somewhere but can use public transport instead. Also, almost every aspect of your spending can be substituted by a cheaper alternative. Nowadays, you do not even have to write down every purchase of yours into a special notebook – you can just download a free application to your smartphone or PC and indicate this information in there. When you add your earnings and payments to there, you will be able to see your week, month and year balance in order to analyze and improve it.
  2. Reduce unnecessary expenses. This point has been already mentioned but we would like to emphasize it since most students have a tradition of buying everything they like or want at the moment. Most youngsters like taking a coffee-to-go just to join the mob of their group mates even if they do not need an extra portion of caffeine at that moment. The biggest catastrophe happens with girls when they see a signboard “Sale” on the window cases – they cannot help but buy the fifth dress even if the only thing they needed was a pair of jeans. If these situations are familiar to you – try to control yourself and think of the greatest goal that you will need the saved funds for.
  3. Pay yourself. This rule deals with acquiring a habit of saving 10% of every earning that you get. There is a paradox – we pay to all people that surround us: to dentists, teachers, shop-assistants, hairdressers but we never dare to pay ourselves. Such habit is more than valuable if you take care of your future and is the basis of becoming rich – you will definitely be grateful to yourself in some years.
  4. Do not invest in risky projects. It is a rather wise idea to invest money in order to make it work for you. However, we do not recommend youngsters who are not too experienced in these questions to give their money to strangers who promise them a good profit. Some projects can be successful but there are a lot which can fail. Therefore, you should either be more than 100% sure in its profitability or better wait for the time when you are well-off enough to take financial risks.
  5. Get use of discounts. This rule is the nicest for students – you can get a lot of advantages as most organizations have excellent offers for students, just like our writing company. Do not hesitate to ask – and get the lowest price.

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