The world of personal finance can be intimidating, but it doesn’t have to be. We’re here to help you navigate the world of money and teach you how to be smart with your cash so that when it comes time for investing or saving, you know how much is enough.
In this article we will be sharing with you 8 best budgeting advice for studentsfor students.
Let’s get started.
1. Save to your heart’s content.
Saving is the most important financial skill you can learn. If you don’t save, not only will it be difficult to achieve your goals, and getting in the habit of saving in your student life can lead you to have a better financial health later down the road.
There are many different ways to save money:
- Save for the things you want—like a car or new pair of shoes—or for emergencies that might pop up unexpectedly.
- Save for retirement and other long-term goals such as buying a home or paying off student loans (or even saving up some money toward your children’s education).
Many of the personal finance curriculums don’t have budgeting advice for students which makes life of students very difficult later on in their life.
2. Make saving automatic.
As a student it might be difficult for you to take an unnecessary headache of transferring funds to your savings account each month. The best way to save money is by making it happen automatically. Set up automatic transfers to your checking account, savings and investment accounts, retirement accounts (if you have them), and even your credit card. That way you don’t have the opportunity to spend that money on other things instead of saving for what matters most—such as buying a house or paying off student loans. This is one of the best saving money tips for students.
3. Pay with cash.
As a student of the digital era, you might have a hard time resisting the temptation to use either your credit or debit card. However, credit and debit companies are not fools and they are there for business. When you pay with your credit or debit card you don’t get to physically see the amount that you are giving. It is just some numbers on a screen. On the other hand, if you’re paying with cash, you can’t spend what you don’t have—and you won’t want to overspend because of the physical act of handing over your money. That’s why I say pay with cash instead of your debit card or credit card whenever possible! This is truly one of the most overlooked saving money tips for students.
If you’re using a debit card or credit card, it’s easy to click “pay” without thinking about how much money is going out of your account. When you use cash, it forces you to think about the cost of every purchase and whether or not it’s worth paying.
4. Borrow responsibly.
Borrowing is not a bad thing. You need to borrow responsibly, especially if you are a student. When you’re in college and need to buy books, or when you’re starting out your career and need a car to get around town, borrowing money can be the way to go. But make sure that you are able to pay back what you owe on time and keep up with payments after graduation or getting a job! Avoid the temptation of using credit cards for day-to-day purchases like food or clothing unless there’s an emergency situation where nobody else can help out.
Borrowing responsibly is one of the best budgeting advice for students.
5. Take a look at your student loan debt.
It’s time to take a peek at your student loans and figure out what kind of repayment plan you are on, if any. This will help you make sure that you are paying the right amount and not too much or too little. If there’s an option for re-paying based on your income, it may be worth changing from one of those fixed percentage plans to that one because it allows more flexibility in the amount paid each month.
6. Create an emergency fund.
An emergency fund is a cushion of money you can use when you’re faced with an unexpected expense. Estimate how much money you’ll need to cover your expenses for at least six months and put that amount in a separate savings account. Subtract this number from your monthly income. The remainder should be allocated to paying off debt or saving for retirement or other goals, but it’s important not to spend it all on yourself.
The World Bank defines an emergency as any event that happens unexpectedly, causes financial loss and requires immediate action (for example: job loss). These events are fairly common among young people—the Bureau of Labor Statistics estimates that unemployment for college graduates ages 20-24 is about 12%, compared to 5% in the general population—so keeping some cash available will help you avoid falling into debt if something goes wrong.
It is pretty evident from the data above that this is the most essential budgeting advice for students.
7. Create a budget that works for you.
A budget is simply a plan for how you will spend your money. You can create one by hand or use an app to help you. Regardless of the method, make sure that it’s realistic and sustainable so that it will work. Don’t forget to include savings in your budget, because it’s important to have extra money set aside for emergencies or unexpected expenses! It is one of the most basic budgeting advice for students but still is often overlooked.
8. Know how much things really cost.
If you’re going to spend money, make sure it’s on things that are worth it. You don’t want to pay ₹1000 for a book that you could easily find it cheap on online stores.
If you’re buying something expensive, don’t be afraid to ask for a discount or even walk away if they won’t budge on their price.
When negotiating, always be polite and respectful of the salesperson’s time and effort; they may decide not to haggle with someone who doesn’t appreciate them.
When shopping online, look at similar products from different sellers before buying anything so you can get a better idea of what the best deal is available at that time – then compare prices across multiple sellers. By doing this regularly over time, I’ve saved thousands of rupees by knowing what exactly is happening with prices across different stores!
If you have student loans, pay them off as quickly as possible. If you have credit card debt, pay it off as quickly as possible and don’t spend more than you make. The above-mentioned tips have helped me immensely in my student life and I hope it would help you too. If there’s anything else I missed here, please feel free to let me know in the comments section.