Student Budgeting has always been a very challenging part of everyone. With proper application of the tips we provide today, it is possible to minimise a lot of irrelevant expenses related to finance. Being a student of accountancy, I know for sure money budget and actual are not always the same. For example- for a month you set a budget of $500 for all types of expense, and when the actual exceeds the budget, it means you are running out of cash.
To save you from a wreck situation in your monetary means which will leave you banging your head against the walls; student budgeting is necessary. However, many don’t understand how student budgeting works, and how it should you exploit it in a way that will ensure you receive a desired positive outcome. For that reason, it is vital for every student to understand the basics of budgeting, and how to control any unessential cash outflow/ expense.
We normally have school fees, transportation, stationary, meal, and other bills related to school. Many of us are working students which mean there is always additional costs related to our lifestyles like laundry expense, car fuel/ cab fare.
Here are the best tips I think would advance your life in budgeting to a new level:
1. Getting a simple accounting started
All you have to do is gather a pen and a notebook. Make two columns, one for Income and the other one for Expense. List all the types of accounts such as stationary, buying food, weekend cost, transportation and also put the means of income, the cash inflows, bank loans if any. A listing will help you get your expense to a budget so that you know how much you can spend on what, according to your income or cash inflow. Sometimes we lose grip of the habit of recording all these, but it is very much imperative to record every bit of it to control monetary accounts.
It is always important to be realistic about your budget by forecasting how much money will come in each month and how much you will have to spend. By setting appropriate numbers, it is possible to develop a perfect budget record.
2. Organizing Income
Many students who work part-time, generally do not earn much to spend money on party or in fulfilling wants. At this crucial stage of life where the budget is always tight, the only thing you will need to focus on at is paying from income for the needs. If there are extra savings, then you could always set aside some cash to fulfill some of your wants. The temptation of spending money on inappropriate things such as smoking or having a meal at an expensive restaurant is something everyone has, but we should try controlling it for the best to happen. If you cannot control yourself in this aspect of your life, then you will start losing control in other aspects of your life. Organising the way you handle your money will eventually prove as to what type of person you are. The better control you have over it, the better you are, and the contrary has the adverse effects. Once you have applied to yourself, a system your efficiency throughout the day will increase. What it will reap you with is a quality life to build your present and future.
3. Maximise your income
Student life it is the time where you get the chance to set a structure for your career. It means you have to try all the opportunities that go along with your skill sets and qualification. The more you think about your financial security, the better you would have a plan how you wish to earn money. If you are doing a part-time job, make sure you feel that there is growth in income.
4. Turn unneeded things into cash
It is always wise to make plans for selling items at home that you do not need. Amazon and Ebay are the best platforms to do it. Even if the income is small, it is worth the shot, because you are not leaving any asset at home to depreciate if you are not using it, and instead it get converted to cash. Keep all your bills and receipts organized, because this will make it easy to retrieve any pricing information, or also help you with keeping track of your spending history.
5. Avoid unnecessary expenses
As neatly put by, Henry David Thoreau,” We make ourselves rich by making our wants few”. Frugality must be comprehended in one’s life so that he/she may be able to expand. Say, for example, you are doing a job that provides you about $1000 a month. However, then, immediately after you receive that amount of money, you spend it on things such as a mega gaming PC, that will run all the high-res games that you want to play without lag. Congratulations! You got what you wanted. However, as you spent that money on that mega gaming PC, you now have to live your entire month in credit. Moreover, at the end of the month, when the bill is in your hands, you will be, no doubt, banging your head against the walls- as I have mentioned before.
The idea here is to guess low for income and high for an expense. If your income exceeds the amount you factored in your budget, then I would say, you won it. The only way you could achieve this is by avoiding all types expenses that are not very essential. Prevention is better than cure, so it is better to save some money now; otherwise you would run out of cash very soon, and you would have stacks of a bill left for paying. Decide the amount you wish to save each month, and put it in the expense column in your accounts ledger that way you will alway be able to preserve many bucks every day.
So you can get your mega gaming PC, by saving money over a course period. When you are sure it will not put you in any financial deficit.