by Jeff Turnbull
Law school will be one of your most expensive investments and having a financial plan is central to your financial success. For most law student’s debt is a part of life and federal student loans for example are debt, but they can also be a sound investment in your future if used wisely. Everybody knows law school is expensive, but have you thought about what expenses are really worth going into debt for?
One of the most important elements of minimizing unnecessary debt is to maintain a spending plan. Maintaining a spending plan will help you develop sound financial habits that will serve you beyond law school.
- Your financial success is largely a matter of choice not a matter of chance.
- Your budget is where you make and carry out those choices.
Budgeting forces you to consider what is important in your life, what you want to own, how you want to live, and what it will take to do that. Some people do their budgeting mentally – and do so successfully. Good for them! Others need to see the numbers.
A spending plan always works. It seizes the money that slips through your fingers every day. Your spending plan is an action based strategy that will help you reach your goals. There are common mistakes many students make when thinking about how to spend their student loans. A few include:
- Lack of planning
- Unmindful of their money temperament (spender or saver)
- Compulsive spending
- Excessive debt
Let’s face it; money makes us crazy and it’s easy for things to spin out of control. Look at your finances like a business and you are the Chief Financial Officer. And remember, you want to make a PROFIT! Surpluses are always better than deficits. Take charge and create your spending plan today.