Mistakes made by students
People often make major blunders in their life; likewise students in their college years tend to make major financial mistakes which result as the post-graduate blues. Making proper financial decisions at college level is of great essence otherwise by the time you graduate, you would’ve create a big hole for yourself which would be difficult to dig out of. Below are the 8 common mistakes that student often tend to make which could add upto bigger debts or limit the future earning potential.
1. Holding more than one credit card :
Credit card is what makes your credit history. If you ruin your credit history in the initial phase of your life then no matter how much u earn after graduation, the whole is so big enough that it becomes difficult to dig out of it. Therefore there is no need to hold more than one credit card unless you’re married or have a joint account.
2. Carrying a balance on your credit card:
It is recommended that under no situation should you finance your lifestyle more than 10%+ effective annual rate (EAR). At college you should have fun and at the same time maintain a balanced budget until and unless you have your mom and dad bailing your out of difficult situation and sending you cheques while you carry balance on your credit card.
3. Dressing to impress:
It often spreads like a viral disease, if one student has a luxury item then the other will also follow them. This goes onto ruin your credit history after you graduate. Its not difficult to ride a $40000 car during your college days to impress your hot date or people around you but that would go onto haunt you for life unless you have the finances to clear off your debt.
4. Neglecting to save:
At an early age this might not be seen as a common trend amongst students while majority start to learn this trick after graduation. As it is very famously said, its never too late to start saving, therefore those who start young develop positive lifelong saving habits.
5. Delaying Graduation:
Completing a degree in its mentioned duration adds enough to your woes already. However , if you complete the same degree in more than the mentioned duration for e.g. if you complete a 3 year degree in 4 or 5 years then you would go onto accumulate debt which might become difficult to repay. Often most people tend to work in a different field compared to what they graduated in and this is completely acceptable.
6. Not Applying yourself in every course:
It’s mandatory to have an appropriate GPA to find yourself a respectable job. Your employer would pay great attention not only to your GPA but also to your coursework. Therefore its highly recommended to make the most of the courses you’re enrolled in to score a high GPA which could help you secure a respectable job.
7. Not challenging yourself with internships:
Along with GPA to support your cause while looking for a job, it would compliment your CV if you have done various internships at college level. If your only experience is at a fast food chain then that would not help your cause. Therefore its highly encouraged that during your holidays, you should take up internships to boost your confidence, speaking skills and other factors.
8. Working for minimum wage:
Never allow yourself to be satisfied with what you’re doing. Always try to look for better chances. This might sound as a difficult task but all it requires is patience and a little bit of research. There are a great deal of opportunities and in the practical world which you could grasp on allowing yourself to earn better and the same time manage your studies and extracurricular activities.
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