As a student, it is important to manage your money. Paying close attention to where your money is going will help you identify where to cut back or make smarter choices.
5 money management tips
Money management can seem overwhelming. Especially when you’re in college, and the very thought of checking your funds might make you cringe. But effective money management isn’t difficult and can significantly reduce the stress you feel about your finances. Check out these tips to keep your finances under control:
1. Create a savings goal and track your progress.
Saving money, in general, might not sound exciting, but what if you had a goal in mind to motivate yourself? Let’s say you want to buy a new laptop. Figure out how much money you want to set aside each month until you’re able to make that purchase, and be sure to track your progress along the way. Adopting healthy saving habits like this will help you avoid unnecessary spending and give you a good reason to keep track of your funds.
Use this spreadsheet as a resource to create and track your monthly budget. Remember that your outgoings and outgoings will fluctuate from month to month, so it’s important to make regular adjustments. Even saving as little as $25 a month can quickly add up. Over a year, that means you can add $300 to your savings.
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2. Wait 48 hours before making a purchase.
Do you ever walk into a store with just one thing on your shopping list, only to walk away with a full basket? These impulse buys can really get the best of you. The next time you’re considering something new that you want, wait 48 hours before making the purchase. If the impulse passes, so should you.
3. Check student discounts and promo codes before swiping your card.
You waited 48 hours instead of buying on impulse, but that purchase is still on your mind. Is it time to swipe your card? Not yet. First, check to see if the retailer offers student discounts. Many companies actually offer lower prices if you are able to present a valid student ID. You should also check if there are valid coupons or promotional codes that you can redeem. Sites like RetailMeNot and eBates, or Chrome extensions like Honey, can help you find the best deals.
4. Look at your bank statements and see where you’re wasting money.
Food? Coffee? Late fee? New clothes? One of the easiest ways to manage your money is to first determine where you spend the most. Then you can consciously make an effort to reduce those expenses.
5. Start an emergency fund.
Let’s say you finally bought that laptop that you created a savings goal for. The next day, your car breaks down, and it’s going to cost you a lot of money in repairs. Ouch! Unforeseen expenses like this do happen, but it will soften the blow a bit if you have prepared for these situations in advance. Start setting aside a little money each month that you will only access when such situations arise. You’ll have peace of mind knowing you always have this fund as a safety net.