The average age of millionaires around the world is slowly declining. As the Internet community blossoms, millionaires are becoming younger and younger. This trend only goes to show that wealth doesn’t recognize age. Too many people start the process too late with the belief that one can only acquire wealth after a certain age. But you don’t have to be old or experienced to become a millionaire these days. The process of wealth building can start at any age. All you need is a financial lesson or two to get you started. So here are some great financial tips for the college student who wants to jumpstart his journey towards financial freedom.
1. Save Before You Spend
A common mistake college students and even average adults make is to come up with a monthly budget and save whatever money is left. Unfortunately, having money at hand is often too tempting. It’s quite common for people to go over their projected expenses. One financial lesson you should learn early is to save first. Decide how much of your source of income or allowance you want to save and deposit it in a bank first. Then, make do with the remaining money. You’ll be surprised how well you can adjust your lifestyle with limited resources. A key aspect in wealth building is saving. This method ensures that you are always able to put away a little bit of savings.
2. Party Moderately
College students love to party, but unfortunately partying takes a major toll on your finances. The problem with college parties is that you’re often going to be in a high-energy situation where alcohol is readily available. After a few bottles, you’re going to feel very generous with your money. You might be even tempted to gamble a bit, or buy drinks for all your friends. Don’t party too hard. This is one financial lesson you don’t want to learn the hard way. Wealth building requires control. If you’re in the habit of losing control, then your path to financial freedom might take longer than you’d want.
3. Get a Job
Many college students have an allowance. But even if you do, don’t let your allowance be your primary source of money. Getting a part-time job will teach you a lot about the value of money. Most people don’t respect money until they have to work to earn it. Getting a job will teach you a valuable financial lesson – wealth building requires hard work. A job will develop your work ethic and discipline.
4. Time is Money
There are so many ways to waste your time in college. You can go out with friends, hang out at the frat house, play pool, play video games, chase after girls, get drunk, and party. Here’s a financial lesson for you, “Every minute you spend on frivolity, is a minute you don’t spend on wealth building.” Who a person becomes is determined by what he does during his free time. If all you do in your free time is get drunk, they all you’ll be looking forward to is a hangover.
5. Don’t Join the Popularity Contest
Some college students still handle themselves like high school students. They care about image, appearance, and popularity. Unfortunately, image, appearance, and popularity cost money. College students spend a fortune on signature clothing, fancy cars and jewelry. One financial lesson you have to learn early is that there is a big difference between looking wealthy and being wealthy. In the process of wealth building, you have to be prudent with your money. You can splurge on luxuries that provide no return for investment. Use your money to acquire assets, not liabilities.
College is not just there to teach you academic lessons. It is meant to teach you life lessons as well. It is meant to build your character and help you transition into adulthood. The wealth building process is a process for mature individuals. A college environment is the perfect environment to simulate what goes on in real life. You can find a financial lesson in almost any college situation. You’re going to make a few mistakes now and then, but that’s fine. That’s part of the learning process. The key is to remember your mistakes and learn from them.