Where there is money, finance is involved. Managing what you have is a challenge for every student. You have your classes, assignments, events and hanging out with friends as well as family. With so much going on, managing your finances must be at the back of your mind. In addition to this, your classes include maths, economics, and finance but fall flat when it comes to giving you financial tips on how to actually manage your finance.
We have compiled 5 easy financial tips every student should have up their sleeve:
1. Plan Your Budget
It is necessary to know where you are on a financial stand. You always feel like you have unlimited money unless you hit the empty pocket phase. Have you caught yourself buying things you did not need? Have you been with less budget to work on for the more necessary things?
This is why you need to create a plan to spend your money. It may seem like a hassle unless you get the hang of it but planning your budget simplifies your finances. You identify the necessities you need to spend on all through the month like lunch, stationery, buying books. If you are living away from your home you also need to take rent, bills, and gas into account. After these areas have been allocated budget you can spend the rest entertainment or shopping.
Be disciplined, budget only if you follow them strictly.
2. Keep Record of Your Expenses
You have more than often spent money and completely forgotten about it. And come the end of the budget, you have a gaping hole in your mind as to where you spent Rs. 2,000-3,000 of your total expenses.
Keeping a record of your expenses helps you keep in check. You don’t have to record all your expenses to the tee, you can do it if you want to and if you don’t – just have a heading that covers a range of expenses like Miscellaneous and dump your nitty-gritty expenses there.
Keeping track gives you a general overview of your spending habits and can also become a base upon which you can frame your budget in case you do not know where to start.
3. Start Saving Early
It is never too early to start a saving habit. Saving is one of the “adult” things every student of all ages must have. It is very tempting to use the money you could have saved on eating out with your friends or clothing but putting aside a few hundred every month is a hugely sensible idea.
Learning to save now not only creates a foundation for future financial security and independence, it also ensures you that your wallet does not go empty at the end of the month. Saving is easier than you think; you can start by keeping Rs.20 a week aside and increase as you feel more confident.
4. Get a Job!
Being a student is very tiring. You have your classes, assignments, projects, and extracurriculars. And yes you deserve a social life too. But the satisfaction of earning your own money is incomparable.
By getting a job, we do not mean get a full-time job. You are a student first. But being a student you can always get a job that does not hamper your studies and still gets you extra bucks. Among many other options, you can take up freelance jobs, paid internships or online data entry jobs that require little to no experience.
5. Avoid Unnecessary Expenses
It may sound like common sense, but if you eat one less packet of chips – Rs.20 and drink one less tea – Rs.10 daily, you will be saving Rs.900 a month. Small changes in your spending habit make all the difference.
Another example of a small change having a huge impact is using online portals to spend. Online payment gateways like Khalti let you earn as you spend, with cashbacks on payment via Khalti. It can be paying your home’s electricity or water bills, buying a movie ticket, recharging your mobile phone or paying your internet bills, you get a certain cashback as you pay for it.
Make a smart choice when you spend your money and avoid the expenses that are not a necessity.
Having a few tips and tricks regarding how to keep your finances in check is a good bet. Especially as students when you are just learning the value of money. Incorporate these 5 financial tips in your life and never have a broke month. You are helping yourself, in the long run, learning about finances early on.
Having said that, do not forget to treat yourself once in a while for all the good job you are doing.