Most of us are busy scouting for all the relevant bank statements, documents and other finance-related stuff to file our taxes. Yes! It's a new financial year and whilst all the adults are busy, I was pondering over what advice I could give my younger self. Today, after making all the possible mistakes (on the financial front), I decided to give you some of the best tips that I could, based on my experience.
A shameless confession:
I've been the worst when it comes to financial planning too. How does that make me the right chap to even advise? Well... It's quite simple. I've made mistakes and paid a heavy price for them. If I can just ensure that I pass on the GYAN for you to avoid, I'm pretty sure you're sorted! So, here goes...
Don't fall for FOMO! It isn't worth it
Let me cut straight to the chase as I feel that this is the most common mistake that many students make. During our school and college life, we're always looking to make extra money. In this quest, we tend to get carried away with GET RICH SCHEMES. It might be trading in cryptocurrency, stocks, or any other network marketing offer. Students are commonly targeted because of the reason mentioned above and also because they can be exploited and manipulated easily.
Always remember, there's no shortcut to success, and it's better to avoid FOMO (Fear Of Missing Out). Save the money you planned on investing. Research something conventional which will give steady returns, albeit small.
Say no to peer pressure
Peer pressure is one aspect of our lives that heavily influences us. One classic example is when someone you know buys the latest gadget. Just because their parents could afford it, doesn't necessarily mean that yours can.
There are two things to remember here: One, do not force your parents to buy you something just because someone else has something. Two, save the money to spend on something worthy. For example, spend on getting skilled. Take up courses that add value to your education or are in line with the career path that you plan to choose. Focus on getting an edge over other people.
Instant gratification is disastrous! It often leads to buyer's remorse
This is something that I suggest people of all age groups follow. I'll give you my own example. I used to upgrade to the latest smartphone. But for the last couple of years, It has dawned on me that my usage hasn't really warranted an upgrade. I've understood the difference between necessity and luxury.
I too, have given in to peer pressure and bought something to maintain a status symbol or just because all my friends possessed it. Though I felt good for a couple of days (instant gratification), I regretted my decision later (buyer's remorse). Hence, the best way to control yourself is to make an honest list of the reasons why you'd want something. You can then understand whether it's a necessity, luxury, or an irrational desire. This also helps you to avoid impulse buying. Remember, money saved is money earned!
Pro Tip: Invest rather than spend
Focus on investing in things that make your life better in the long run, rather than focusing on short-sighted pleasures. One such thing is health. Join a gym, exercise, and reap the benefits. Take up internships that might turn into employment. Take up part-time jobs that don't hurt your study plans. If I have to talk in purely financial terms, save money and invest in SIPs or buy gold and/or silver. There are many ways you can invest especially with apps available for everything.
I usually refrain from covering mundane topics or writing about something that's common knowledge. Hence, rather than talking about creating a budget, analysing your expenditure, and avoiding unnecessary expenses, I've touched upon tips that come from experience, and that have greatly helped my clients. I hope you become financially wise this new financial year. All the very best for your future endeavours.
With Love and Regards,
Adarsh Benakappa Basavaraj
Your Coach
