5 Tips For Managing Student Finances During Your Undergrad
Managing Student finances is an art which not everyone can master
Managing Student finances is an art which not everyone can master. Studying abroad provides you with a lot of opportunities.
Opportunity comes with a price tag. If you do not plan it well, you might end up with a huge educational loan.
The key is to plan everything a month ahead and to never exceed your maximum budget limit.
Follow these tips at all costs to keep your budgets in check and to pay back your student loans as early as possible.
1. Plan your budget beforehand
Prior planning on your budget and your expenses is the key. You must keenly observe your source of money and also how you spend it. Estimate your monthly expenses on the first day of each month.
Set an upper threshold limit. Always make sure that you never cross the limit. Maintain a diary or use a mobile app and note down your expenses including food, accommodation and transport.
2. Know your needs and wants
You must understand the difference between your needs and wants. If you manage to save up some money at the end of each month, do not spend it on things which you do not need.
An expensive lunch or a fancy electronic gadget is going to eat up all your funds if you continue doing it frequently. This does not mean you should neglect them once and for all. Choose wisely and keep them less frequent.
Understand the difference between your needs and wants
3. Set up an emergency fund
You cannot rule out the possibilities of emergencies. If you live on an unplanned budget, it will be difficult for you to cope up with unexpected medical expenses.
To give you peace of mind during such circumstances, reserve some money which you should only use during emergencies. Start by saving $1000 and add any spare change to it which you manage to save at the end of each month.
At any point in time, you should at least have money to bear 3 months' worth of expenses.
4. Start a side hustle
Managing student finances is not a big deal if you do this. Look out for part-time jobs available in your locality. You do not have to earn huge bucks. But a small second revenue would pay for your food and living.
Students who pay for their expenses with educational loans can start saving up to pay them back. Make sure that your side hustle does not interfere with your education. At all costs, education is your priority.
Look out for part-time jobs available in your locality
5. Learn to do your own chores
Make use of the internet and teach yourself how to cook. Hotels and canteens can be pretty expensive. If you live with friends, do your own laundry.
Do not pay for something which you can do on your own. Make schedules and plan the turns between your roommates. Little things add up and you could save a lot by doing this for a year.
To Conclude
Always realize that you are totally responsible for your expenses and lifestyle. Never delay paying your rent and other immediate expenses.
Prioritize things and try to fit your expenses within your budget. Managing student finances is like a cakewalk if done right. Follow these tips and save some money.
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