Managing finances during your college days can be a stressful task especially if you are paying your own fees and meeting your own expenses. It is very important to make decisions that are well thought of and will keep you stress-free. It can become a little difficult to manage expenses during college days with no fixed source of income for many.
Rahul is a 21-year-old college going boy who does not have a strong economical background and has to manage his expenses and source of income very carefully. Consider the following approach that he adopts to live a comfortable and stress-free life.
He finds a part time job
Working at a place of your interest that will support your career demands as well as your financial needs is the first step in the direction. Make sure you look for a place near your area of residence or college campus in order to cut down the travel time.
Also, ensure that the job does not drain you completely. This is because being a student you should have enough energy at the end of the day to focus on your academics.
Keep a note of the offer letter, the contract signed, etc. in order to avoid any kind of delay in payment of salary and to eliminate fraud.
Plan a budget
This is the most important measure that should be adopted. Planning your budget will inculcate financial discipline and help you keep a track of your expenses and savings.
Divide your budget in four categories - fixed expenses, variable expenses, entertainment and recreational expenses, and emergency use - which will help you cover all your daily needs. Planning a mindful budget reduces stress by manifolds.
Stick to the planned budget
Planning a budget and sticking to it are two different things. Youngsters have a tendency to pull out money that they have set aside for emergency use. However, it is important to understand the importance of being financially disciplined as it will help you throughout your life.
One way to do this is, set weekly targets to save a fixed proportion of money and not touch your emergency fund. Also, make payments in cash wherever possible as this helps you keep a track of the money you have actually spent. Cards can inculcate the disguised unnecessary expenditure.
Budget shopping - understand the difference between wants and needs
Following the trend and your actual needs are two distinct things. Avoid fast shopping and eating out at over-the-top expensive cafes and restaurants. Why spend Rs. 350 for a cup of coffee when you can get the exact flavour and quality for Rs.150?
Similarly, buying a leather jacket every year is just fast fashion, buy it once and wear it for the next four years. Not only does it cost heavy on your pocket but also degrades the environment.
Apply for more scholarships
The opportunity for a new scholarship opens up every year, so make sure that you make the most of it. Go through different scholarships and find the best category that suits your capabilities. A lot of institutions offer scholarships on the basis of extracurricular or sports activities.
Others might offer them on the basis of academic performance while others might offer on the basis of annual family income. Apart from this, a lot of NGOs and government schemes have been put in place to assist the academic expenses of an individual.
Managing your finances along with academics might look difficult during college days but it helps you in the longer run. Not only will it ensure financial discipline but also helps you plan your academic future accordingly.
One must understand that cutting down on costs is a very effective method of managing your expenses. Lastly, stick to your budget and do not interrupt your savings for a mere urge of a ‘want’, remember to stick to only ‘needs’ with limited money in hand.