Managing money as a student can be challenging, especially when you are living away from home. You need to save up enough for experts who help you when you ask, "Can you do my homework ?” or pay your tuition fees or plan a night out with friends. However, living your life under financial constraints is not the best.
So, if you have no idea how to achieve your monetary goals, here are some tips that can help.
List Your Expenses
When you are trying to manage your money, the first thing you need to do is create a budget. List all your monthly expenses and calculate your net income. This income can be from your part-time job or money sent by parents etc. Once you have your income ready, it is now time to list out your expenses.
Make a list of all the supplies you usually spend on. Say, for example, rent, groceries, travel, school supplies, utilities etc., if you take homework help or have any savings or deposit account calculate that in your expense list. This is also an essential deposit you make every month, so you must remember to keep the money aside for your future goals.
Determine Average Monthly Costs
Once you have listed out your expenses, categorize them into fixed and variable expenses. For example, all your bills, groceries, anything that you cannot avoid will be your fixed expenses. Variable expenses will be occasional expenditures like night outs, travel plans, dining plans etc.
Make a chart and mention the cost of each item beside the names. If your spending on each item varies from month to month, then try to write an average amount that you tend to spend. Once you write down your expenses, calculate the total and deduct it from your net income. This will give you your savings amount.
After all the calculations, it is time to do some logical thinking. Not all the things that you see on your list are the utmost essentials. So, if you wish to save up more or plan a budget, you need to cut down meaningless expenses.
Go through your list and see what all can you eliminate. For example, dinner plans or game plans etc. can be easily adjusted. Instead of doing it every weekend, you can do it once a month. This will save you a lot. Adjust your lifestyle a bit for better budgeting plans.
Start with a positive mindset and then follow these tips to achieve your financial goals