- 1) What you are paying in your rent or mortgage should always be less than what you are making in a week. In other words, your weekly income should be safely higher than what your rent or mortgage fees are. If this is not the case, you should make some changes immediately.
- 2) If you need a loan or are borrowing, then you should only be doing so with the goal to make more money in return. Be wise with this money and do not use it for indulgences. Put it towards what it is intended for, whether that be a deposit for your education or careful investment. You will thank yourself in the long term that you didn’t spend it online shopping.
- 3) Most importantly, know your income. As your income increases, your cost of living should decrease or stay the same. Always look for the next best position that will carry you up towards financial freedom. Do not limit yourself or feel stuck.
If you keep these three rules set in mind, you will never be trapped by your finances. Students have a lot to pay for (tuition, supplies, cost of living) and have to keep track of so much. It is best to be prepared and monitor your financial habits carefully.
Best of wishes and financial success!