They say that your early twenties are the best years of your life. Devoid of any actual responsibility, and with just fun on your mind, these years are considered the most memorable.
Despite this seemingly euphoric phase in your life, it is also the time in which higher education comes into play. College life is of course an enjoyable time; however, it also comes with many other real-life matters that require you to conduct yourself as an adult, and take on certain levels of responsibility. If not, one may find oneself at the bottom of a very deep well of debt, by the time one’s college life comes to an end.
Therefore, learning to manage your finances as young adult is extremely important.
Making smart spending choices
When you get your first part-time job and you are experiencing what it is like to finally receive a substantial pay-check, you may be enticed into going off on a rewarding spending spree. However, the reality is that not only do you have to make this money last for your basic needs for the rest of the month, but you must also use a portion of it to pay rent on accommodation, amongst other payments.
Making smart spending choices is key. Especially when it comes to daily spending, just a few subtle changes can make a significant difference. For instance, making your own coffee at home instead of purchasing one for five times the price at a high-end coffee house each day, means that you save an incredibly large amount.
College life is notorious for take-out meals and fast food. Doing your best to include at least three or four home-cooked meals in a week will allow you to cut down on the expenses of take-out meals, saving you a massive amount of money at the end of the month as well as the long run.
Many young adults will face some level of debt during these few defining years. Payday loans in Singapore and other quick loan methods can seem very attractive to a young person just starting out. The prospect of receiving money instantly is appealing, and the consequent interest payment is seemingly ignored when considering whether to take out a loan.
Many students who study abroad may also find certain personal loans for foreigners and attractive way to get some quick cash.
While some of these loans may in fact be substantial and well within the legal system, others may find themselves put in difficult and questionable situations due to the debt created.
It is best to reach out to a trusted adult when considering such serious issues as loans. Getting advice from a trusted party will mean you have a better chance of not falling into ‘debt traps’.