While a lot of friends around you are satisfied with their new first job, you have your eyes set on something greater. You want to go for post-graduate studies in the best of colleges world wide. You are studying hard for your GRE or GMAT and you know that a score or an interview is not your biggest hurdle to land a seat in the esteemed international university. It is a big, fat wad of cash that would pay for your education. While an education loan is a pretty common option to go for, there are numerous ways to cushion your study abroad by planning in advance.
1. Budget and stick to it
Budgeting is a sign of a healthy financial lifestyle and should be done irrespective of higher education plans. But if you do have a goal of saving money to study abroad, it is essential that you get on with budgeting. Plan your monthly expense, and then plan your budget around it. You can start planning with a spreadsheet or the numerous apps that are available now. The key of course, is to actually stick with it.
2. Grow your Money through SIPs in Mutual Funds
While we are on the topic of budget, one of the best ways to save some money without worrying about forgetting is setting it up to an auto-save mode. SIPs (Systematic Investment Plans) allows you to invest small monthly payments in mutual funds and these could be set up to deduct from your account directly. The rate of return on mutual funds is much higher than say, recurring deposits and if invested in tax-saving mutual funds (ELSS), then you can even save some on tax filing! Do we have to mention how satisfying it feels to see the money grow? Talk to your trusted financial adviser today.
3. Cook more at home
You probably are thinking when did we switch from saving to kitchen tips but have you ever tracked how much money you spend on eating out? It doesn’t matter whether you eat at a decent restaurant, or at the dhaba wala, the prices have soared significantly thanks to inflation. You can save considerable amount by cooking at home. A side benefit to cooking at home is good practice for your dorm life later when you actually move abroad for your studies. And really how bad could it be?
4. Invest with a goal in mind
Now that you are making some real savings with a good plan, how about investing them in mutual funds? Goal-based investing with mutual funds is a safe way to dip your toes in the world of investing. Plus, you are at a perfect age to get riskier with your money than anyone else older than you! Companies like CAGRfunds regularly help achieve financial goals through expert advice. Technology has made investing an almost hands-free experience.
5. Keep no credit cards
Or maybe just one for emergencies. Credit Cards are notorious for making us feel rich when we are not. The best among us have succumbed to the lure of the shiny new thing at the mall because credit card hai na. It is important to not let the plastic card ruin our lives with unplanned spending. While spending with the credit card doesn’t feel a pinch, the bills would definitely pack a punch!