When you go from being a school student to a college student, a lot of changes, including your ‘You see it, like it, parents buy it’ mentality. Most people study away from their hometowns and parents. For most youngsters, college is the first time they live alone & step into an independent life!
And so, it becomes the first time we manage our money all on our own. College students have fixed pocket money coming from home.
The most common myth among the students is managing money is a task for adulthood. Well, it’s not. You must start budgeting today, it will prepare you for a financially safe future.
Why is Budgeting important?
First, let’s understand what is budgeting? A budget helps create financial stability. By creating a spending limit, tracking expenses and following a budget plan you take better control of your money.
Budgeting is important for having peace of mind.
If you don’t want to end up eating Maggi for 7 days straight at month end. If you don’t want to ask for extra money from your parents every month. If you don’t want to end up financially devasted. Budgeting is for you!
5 Budgeting Tips for College Students
Use these budgeting tips right from the first year of college and budget like a pro for the rest of your life!
1. Calculate monthly income & list all your expenses
The first step to getting started is knowing your net income for the month and calculating all the necessary expenses. You should then chart out how much money you are left with to invest.
2. Create an extra income source
The most important trick of budgeting like a pro is to increase your budget! If you don’t want to suffix your spending, earn more. Learn new ways to earn money. Legal & sane. Try Copywriting, graphic designing, or teach tuitions.
3. Use financial apps
Financial apps come in all categories, you have an expense tracker app, budgeting app, bookkeeping software, online banking apps and more.
Use good technology to take good care of your money.
Some free & great apps are – Mint, YNAB (you need a budget), PocketGuard, Personal Capital, etc.
4. Minimize borrowings
College life is meant to be enjoyed completely. But try doing it within your means. Hold your temptation and minimize borrowing as much as you can.
5. Never miss out on student discounts
Student Discounts are students’ genie. Use google to search all about your student discounts near your area and never miss out on them.
From your favorite restaurant to your favorite tech brand, everyone has something in store for students!
6. Pool with classmates
Try pooling your expenses with your classmates/ roommates. Like taking a cab together, Splitting for groceries, etc.
7. Set up long-term financial goals
Once you start budgeting, you’d understand the importance of great finances and good financial knowledge. Leverage your learnings and don’t stop at managing your expenses, instead set long-term goals for yourself!
College life is when you enjoy the most, fail the most and learn the most. Don’t be sad if you overspend sometimes and go outside your budget. Keep trying and eventually, you’ll get better. Hoping these budgeting tips help you.