Budgeting Tips For Students | Eric Finance

Uni life can be a lot of fun, but it can also be financially difficult when you do have too much fun. Some may be grappling with the new concept of paying rent, while others will probably be partying like there?s no tomorrow. To give you better control over your finances while you study, here are several budgeting tips.

Tip 1: Keep track of all your expenses

The important first step to budgeting is to keep track of all your expenses. You do this by recording everything you spend every month, either on a small notebook or any spreadsheet software, and keeping all your receipts so that you can see where your money goes. That way, you can make the necessary tweaks to your expenses and save funds. Having records of all your outlays are also handy for keeping track of your credit limit and reminding you not to overspend. Don?t forget to include receipts for utilities and bank statements, if any.

Tip 2: Avoid getting / using a credit card

Unless you really need to get one, avoid applying for a credit card. If you already have one, try not to use it too often because you might end up in deep debt. Sure, a credit card lets you establish your credit early, but if you?re new to the concept, stick to using cash. The risk of having one is even greater than any supposed early advantage it may bring. Get one when you?ve settled into uni life and when your finances have stabilised.

Tip 3: Put up your own business

Can you do something that you think other people would pay money for? It could be anything ? maybe you know how to assemble a computer, or have an eye for photography. Then think about putting up your own business, which would likely be more manageable time-wise than getting a job. You get to do something you enjoy, earn money and still have enough time to actually study in uni. Make sure you always surpass your customers? expectations so that you can charge extra after establishing a fairly-sized customer base. Who knows? Maybe this business might be so lucrative it would turn into a career.

Tip 4: Learn how to cook

Despite the rising costs of everything, including groceries, it?s still cheaper to prepare your own food than eat out, thus the need to learn how to cook. Even a cheap cafeteria at uni would take a heavier toll on the pocket than making your own sandwiches or preparing your own coffee. To save money on groceries, shop when your local supermarket runs a daily or weekly special; this could significantly reduce your grocery bill. In case you grow tired of your sandwiches, a cookbook can add depth to your repertoire. It might even be a new idea for a business (see tip 3).

Tip 5: Spend less than you earn

Here?s the best tip that we can ever give you?ever. Spend less than what you earn. This is the best way to amass wealth. If you spend more than you earn, what you amass is debt. If your income and expenses are roughly the same, your option is to either spend less or earn more. Guess which one is actually easier? Spending less, naturally, is easier than earning more because the latter requires that you get a second job, whereas the former is something that you can do immediately. All you have to do is stop spending.

Tip 6: Stay away from expensive habits

I need to clarify that bit about stopping spending: we still need to buy provisions and pay for utilities. What we need to do is reduce our wants, our expensive habits like liquor, cigarettes or video games. There?s nothing bad about an occasional Call of Duty session with friends or a couple of drinks during spring break. It?s the excess that hurts you and your finances.

Tip 7: Use public transport

Owning a car can be quite expensive, especially if it?s several years old already. Petrol, maintenance parking, insurance, registration and repairs cost a lot of money so unless you get paid to fix cars and know where to get free fuel, use public transportation. It?s cheaper and you?ll get plenty of exercise walking around.

About The Author: This article was written by Michael. Michael is a financial blogger who likes to share his tips for managing personal finances. He is also a content writer for creditcards.com.au.

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