Today it is a common question for all students “how to manage budget?” or “how to stick to a budget”. Managing money while you are in college is no doubt a difficult task, but not impossible if you know the right way to tackle the finances. The following budget management skills will help you in budget planning and also live your life with limited finance while enjoying life at the same time.
So, what Exactly is a Budget?
For a college student, a budget will include all expenses from fees to accommodation and travel to food expenses. For effective budget management, knowing and planning your college expenses is essential. This will help you spend wisely, avoid stress, and, most importantly, debt!
Find a few Strategies for Money Management:
1. Be practical
If you are a beginner in budgeting, the first thing you need to do is calculate how much money you are earning every month and how much you are spending. You need to be practical about the amounts and do the money management accurately.
2. Strategies of money management
You should be conservative while making the budget and guess for a low income. It leads to a better outcome, if the money coming in, exceeds the amount you thought. Also keep your expense range higher, just in case of an unexpected expense, or inflation in the market economy. This would help you to manage finance better.
3. Know the difference between “needs” & “wants”
If the money is tight, you need to understand the difference between what you need and what you want. Needs are always our priority over wants. Remember, the latter can be fulfilled with savings but not with immediate expenses. And this understanding is very necessary for money management.
4. Include a column as “savings tracker” in the budget
You should decide the amount you would like to save each month and include it as a separate sub-head under expenses. Even if you can save a meager amount, you should transfer it to a savings account. At the year-end or mid-term, you can use these savings to meet your short-term goals like going on a trip with friends or buying a new sports shoe. This is another good technique for budget management.
5. Organize bills as a part of your budget management plan
You should keep all the bills organized, like college fees, education loans, utility bills, hostel charges, and food bills, and categorize them into separate files. This way you can retrieve the information easily and track your personal budget template.
6. Always pay in cash
Swiping the credit card at the cash counter is quite simple and looks smart. But you tend to forget how it accumulates to actual money. Keep a daily or weekly allotment of cash, according to the expected expenses, and pay cash whenever you can. This way, you would be conscious of what you are actually paying and would be able to keep a check on your shopping spree.
7. Cut down unnecessary “eating out” or “ordering food”
If you are sharing an apartment with your classmates or have rented an apartment for you, learn to do cooking at home. It does not mean that you will never eat out. But occasional eating out is better than making a habit of ordering food through apps and spending more money. Cooking can be fun and inventive. Even you can prepare yummy breakfasts or snacks from the leftovers thus saving more money on the ingredients.
Even if you are eating out, you can take advantage of student discounts. Many fast-food outlets such as Domino’s or Starbucks offer additional discounts. Money saved is money earned and often a most understated effective budget management skills.
If you are sharing an apartment with your classmates or have rented an apartment for you, learn to do the cooking at home and indulge in healthy eating habits. But occasional eating out is better than making a habit of ordering food through apps and spending more money. Cooking can be fun and inventive. Even you can prepare yummy breakfasts or snacks from the leftovers thus saving more money on the ingredients. Besides being one of the best money management tips, it can also be considered one of the best healthy lifestyle tips.
Benefits of Good and Effective Budget Management Skills:
Good money management leads to better investment in life and more savings. Some advantages of having budget management skills:
- More financial security
- Less stress and conflict
- More money and less spending lead to more savings
- Gives more control over finances
- Worthy future investments
- Less financial issues or conflict
- Helps you keep track of expenses and curb the extra unnecessary ones
Final Thoughts
For you managed your budget skills well in your college days, as a fresher applying for accounting or finance jobs, you can demonstrate your budget management skills on your resume. You can showcase how you managed your spending during your college days without incurring debt. This example in a “manage budget resume” can put a fresher in a solid position to get the job.
