5 Tips for Better Budgeting and Money Management as a Student

Being a student is one of the most exciting chapters in the book of life, but it can also be one of the most challenging and stressful ones. Aside from the fact that you have to stay on top of your academic goals and keep pushing towards your dreams on a daily basis, you’re also faced with the difficult task of managing your finances, making money on the side to pay your rent, all the while putting enough money away to have fun and maintain a healthy social life.

Needless to say, managing and saving money as a student is not an easy task, but that doesn’t mean that you’re destined to struggle throughout your university years. Let’s explore some smart budgeting and money management tips that will help you achieve financial independence as a student.

It all starts with budget creation and tracking

You can’t hope to develop a better finance management system or to build healthier spending habits if you don’t know how you’re spending your money, where the bulk of it goes, what your revenue streams are, or what your financial goals entail. Remember, you will be better equipped to make smart financial decisions if you base them on relevant and verifiable information – which is also a great life and business lesson if you plan to kick-start your own company down the road.

Much like every good business decision, your budget should have a solid foundation, so start by making a list of all of your expenses throughout the month. Start weeding out the non-essentials, and identify where the bulk of your finances go. Make a realistic financial goal so that you can start saving up and allocate a reasonable amount every month towards your savings budget – you will need it to build financial freedom.

Stick to healthy home-cooked meals

By and large, most of your money will go on the food, beverages, and guilty pleasures that you treat yourself to every once in a while without ever realizing just how these expenses are affecting your financial standing. This is a surefire way to burn through your money pretty quickly, which is why one of your top priorities should be to eliminate takeout, vices like alcohol or cigarettes, and of course, Starbucks.

It might seem like a challenge, but just imagine how much money you’ll be able to save by buying all of the ingredients yourself and eating at home. What’s more, banishing certain vices from your life will positively impact your health but also your budget, while simply buying a thermos and making coffee at home before heading off to class is a great way to eliminate the steep price of a hot take-away cup of Joe.

Use your credit card wisely

The world runs on digital currency and wireless payments, and chances are that you probably have one or more debit or credit cards in your wallet. While there’s nothing wrong with that, you shouldn’t just blindly use your credit card only to get scared to death when your credit card statement arrives in the mail. Instead, you should use your credit card wisely, but most importantly, you should compare your options to upgrade and choose a better plan.

Nowadays, you can easily compare credit card options online and find a card that matches your needs, one that can provide low interest fees or cashback programs to suit your needs and your spending habits. More importantly for you as a student, you can choose a card with lower upkeep costs to help you lower your monthly expenses as much as possible. Be sure to research and compare providers before making a decision, and whatever you do, don’t settle for the first thing that crosses your path.

Allocate finances for specific events

Part of the allure of student lifestyle is having the energy, zeal, and time to attend numerous cultural events and happenings around town or even around the country. That said, every cultural event, even a stand-up comedy show, has a price tag. You can’t hope to experience the rich cultural scene on a shoestring budget, so be sure to create a special arts & entertainment budget that you will only use to finance your cultural exploits.

Embrace a sustainable consumer mindset

And finally, understand that you don’t need to buy new stuff to feel satisfied and happy. In fact, buying new from big brands only contributes to waste production, global warming, and it hinders small local businesses, so why not embrace a more sustainable approach? Consider buying pre-owned clothes and textbooks, used tech and furniture, anything with a lower price tag that is still in great condition. This way, you will greatly lower your expenses while doing your part for the environment and your community.

Wrapping up

Being a student is definitely exciting, but sometimes you have to think like a true business-person and make long-term financial decisions. Be sure to use these tips to better manage your money and pave the road to financial independence.