The first thing you need to know is that wealth, such as money, houses, stocks, funds and other material assets, are tools to make our lives better, not the purpose of life. Any money you earn is a byproduct of your perception and is the result of diligent study and accumulation. Here are a few financial planning tips you may need to take into account.
Establishing the right outlook on money
As a university student, your studies definitely come first, but if you have some spare money outside of your studies and living expenses, using that spare money to manage your financial planning will be a golden key to unlocking financial intelligence in your life. But if you want to borrow money or even scrimp and save to accumulate funds to reach the threshold of buying stocks or funds because you see other students buying new clothes, shoes or computers, I advise you to give up early. If you are not coming to finance with a heart to learn and exercise yourself, but with the mindset of speculation, getting rich overnight and thinking you can speculate through the capital market, I advise you to recognise the reality early.
Investment is not the same as speculation
In terms of finance planning malaysia, If you want to make money by financial investment, at least you need to spend some time and energy to study and research, at least know what is financial management, develop basic financial thinking, and master certain practical skills. After that, then after continuous practice summary, step by step to improve the rate of return. The correct view of money must not be a love of vanity and gold, thinking every day of getting something for nothing, but learning to know.
Before deciding on the priority of various financial goals, it is important to understand some of the things that are really important to you and other family members. Before you set your financial goals, ask yourself what kind of picture comes to mind when you think of a happy life. Maybe you’re deciding on a school for your children, or how to increase your retirement savings, or maybe you want to buy a boat, go fishing in your spare time, and spend your weekends away from the hustle and bustle of the city, relaxing in your own cabin in the country. Everyone has their own preferences and dreams, and there is no standard answer to financial goals set through financial planning. While money can’t buy happiness and joy, accomplishing your financial goals through daily financial planning is a way to gain the freedom to make your own decisions in life.
Take control of your spending
One thing that many people will overlook is that controlling your spending and expenses each month is also part of managing your finances. Managing your money is not just about having investments, it is also about managing them. One of the important things is to stop yourself from being a moonlighter. In other words, we have to learn to control our spending. Every month, how much I can earn, I have to plan how much to spend and how much to save, you can’t just let your nature take over. Only when you control where you are, you can have extra money and you can invest it.
Keep an eye on your bills and use credit carefully
The use of credit cards is a controversial issue in the financial industry, and even more so for university students. The problem with credit cards is that they tend to encourage spending, even bad spending habits. If you are unable to repay your credit card debt, it will have an impact on your academic life and may even cause financial stress to your parents. It is advisable for students who use credit cards to develop good financial habits, starting with paying attention to their statements. If you start paying attention to your statements, you will be able to find out. The statements should be managed centrally so that they can be analysed, and if you have time, you should make a summary table. On the one hand, you can observe your spending behaviour to see if it is reasonable and can be improved, and on the other hand, you can observe if you are incurring interest charges, i.e. incurring costs, and understand how interest is charged on credit cards to try to avoid unnecessary expenses.
Learn about financial literacy and financial tools
Some university students are eager to try their hand at investing while they are still at school, hoping to gain investment experience early on to help them invest profitably in the future. This is a good starting point, but it is important to be well prepared before investing, starting with knowledge and understanding of investment tools. If you are a finance-related student or are planning to work in the finance field in the future, you can study systematically in conjunction with your studies and observe the market in conjunction with your book knowledge. Students of other majors can learn the basics of investment instruments in their spare time, starting with the library, reading relevant books and then observing the market in the context of the market. In addition, students can attend some seminars on the financial industry and get more information on investment in practice. The most basic principle is to find the right investment tool for you and to stick to a prudent strategy, not to make quick profits.
Money management requires long-term hard work
It is necessary for students to actively learn scientific and reasonable financial concepts and cultivate good financial habits, but at the same time, students should not forget the premise that their studies and courses should not be affected and that they should not be overly addicted to financial management and investment. The other thing is to be psychologically prepared for money management, which is not as rich overnight or once and for all as many university students think, but requires long-term hard work, great patience and perseverance.