7 Best Personal Finance Tips For Students

Although gaining complete financial independence may be a huge challenge, smart financial planning can help remove a lot of burdens. The sooner you start with the planning, the better. However, it is never too late to define financial goals for ensuring financial stability and freedom for you and your family. You may have read a legion of personal finance plans already and thought it as a complicated and overwhelming topic, but really, it’s not.

Here we have listed the best financial moves in 2019. These smart personal finance tips can not only help you cultivate a debt-free lifestyle but can also help secure your Retirement.

1. Consider Refinancing student loans

Student loan debt is inevitable in our life but coping up with it is definitely not easy. However, refinancing loans is arguably one of the smartest moves you can take. Refinancing student loans means consolidating your multiple existing student loans into a single loan with a slightly lower interest rate and monthly payment.

Not only you can refinance without paying an extra dime but you could also pause your hefty payments for a while if you lost your job recently or facing severe financial problems. Furthermore, there are no prepayment penalties for paying off your debt earlier. While refinancing, you can say no to multiple high-interest rates and consolidate them into a fixed or variable lower interest rate. Also, you could redefine your loan repayment period to short term or as large as 20 years. You could use loan refinancing calculators for knowing your best money management strategies.

2.Leverage your skills for a side hustle

Having a side hustle is always beneficial as you could earn more to pay off your debt easily. Saving money and building your savings account can’t get easier than this.

It could be anything, from web development to plumbing, there are a lot of platforms that pay you for your skill. Post gig for consulting, data entry, writing or local jobs on platforms like Fiverr, Upwork and get hired. There is nothing better than having a more flexible and convenient option than the usual 9-5. And who knows, your side hustle turns into a full-time high-paying gig.

3. Go for Credit card consolidation

Tired of paying multiple huge credit cards bills every month? Many would consider Credit cards as a necessity as it saves both time and upfront expense but in reality, credit cards can be an insane debt trap. We often forget that credit cards are not a free money source. You don’t realize but multiple credit cards payment with high and available interest rates is costing you a lot more than it would cost after credit card consolidation. You can significantly lower your credit card debt payments by choosing a personal loan or credit card consolidation loan. Such loans are unsecured and ranges between $1,000 to $100,000 with a repayment term of 2 to 7 years.

If you have a decent credit score, you can easily get a lower and fixed interest consolidation loan. Isn’t that 6-7% personal loan interest rate looks better than the 16-17% credit card APR?

4. Never underestimate credit score

The credit score is your key to financial stability and freedom. When purchasing a good life insurance policy or a cost-effective personal loan, the credit score plays the most vital role. Usually, FICO credit scores are used by banks and ranges between 350-800. Higher the credit score lower will be the interest rates. A score over 750 is excellent while a score below 600 is considered poor. Always aim for a credit score over 700. For maintaining a good credit score, you should avoid maxing your credit card limit and always pay your credit bills on time.

5. Make the most of your tax refund

In 2018, IRS reported refunding more than $324 billion with an average tax refund of around $2,900. Although you didn’t hit a jackpot, tax refund comes as a surprise and it is the perfect time to re-evaluate your personal finance book and either use it for savings or paying off an extra debt payment. But, it would be smart to use it for an extra debt payment as you can save a lot on interest in the long run. Just make sure you contact your loan service provider to ensure that the extra payment is applied to the principal balance and not for the subsequent monthly payment.

6.Create an emergency fund

Nobody knows what the future holds for them so it’s best to be prepared for the unexpected. Apart from living expenses, there can be emergency expenses. According to the Federal Reserve, around 40% of the Americans don’t have a way to pay for an emergency situation like big car repair, medical bills, home repair, and unemployment. The best way is to start establishing a financial framework that can cover unforeseen expenses in the future. Experts recommend putting 20% of your monthly paycheck into the emergency fund. However, it is absolutely up to you. But, investing 20% can really make that emergency fund a retirement fund one day.

7. Get a 0% APR credit card

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Have an exorbitant credit card debt? Want to save on the excessive interest for some time without having to pay that interest later? Then going for the 0% APR credit card is a great financial move. A 0% APR credit card provides you with a 0% interest rate on your credit debt for a certain period. The period can be 12 months or longer. All you have to do is transfer your credit debt to the 0% APR credit card. So until the period ends, you don’t owe any interest. However, you have to make sure that you pay off the minimum balance every month.

As a student, these tips can help you a lot financially. From managing your student loan to paying your debt easily, such astute financial moves can be very rewarding. However, you don’t want to lack academically. If you are looking for a proficient essay writing service for getting higher grades, Rapid Essay is your essay writing help solution. Rapidessay.com has a track record of delivering exceptional paper writing services and can give your essay a premier finish.

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