This is a guest post by Paul Smith. If you want to guest post on this blog, check out the guidelines here.
The given article is aimed to provide a detailed road map for students to manage their budget in the real world. Money management is an important piece of the trading success puzzle. At colleges and universities around the world, students don’t know how to properly implement financial theory in the real world. At first glance, money management seems to be boring and tiresome. Every single student cares about all that money stuff; thus, they need to be smart with their money. Undoubtedly, health care, books, housing, registration fees occur monthly; nevertheless, the only solution to this issue is to reduce your spending in order to you’re your potential budget plan. Hopefully, these tips will help you save money throughout several academic years:
- Know your monthly income (student loan, received grants, wages, and cash given by your parents) and expenses.
- Create a budget plan for yourself: 50% should be put towards your transportation, apartment rent, and groceries. The 30% must be spent to on your own needs (shopping, entertainment, etc.). The last 20% it is your saving.
- Pay your bills by due dates and get out of debts.
- Protect yourself from purchasing insurance.
- Get a credit card with lower rates.
- Regularly check your credit card account.
- Use student discounts.
- Leave your car at home as most of the campuses are fortunately pedestrian friendly.
- Of course, do not forget to contribute to a retirement account (even if you are only 20, you should take care of your future).
In fact, these techniques are used by a wide range of successful business owners. On the one hand, money managing is a rather difficult aspect, so even if you spend a lot of time worrying about money, take your time to figure out your budget and build a plan that productively works for you. However, on the other hand, enjoy what you have already got and focus on what is more important for you.
In addition to the mentioned above, you will need to determine what is essential and non-essential for you. For instance, essential items can be food and clothing, while non-essential items may include electronic devices, or a pair of sneakers (however, you have already got a couple). People make mistakes spending a lot of money on unnecessary things. So, if you are going shopping, make sure to purchase items that are in your list only. This usually happens due to the wrong attitude towards money management.
It would be difficult to get accustomed to regular reducing of your budget, but still possible. Specially established the Student Money Management Center provides assistance to the students in a form of lectures and workshops on topics related to money saving, protecting your credit card, proper budgeting, and money saving aspects. The organization is aimed to reach out students and teach them how to properly determine and monitor expenses during college, and create a financial survival budget plan throughout the academic years at college.
Probably, Money Management is not listed in your top-ten list of fun things to study. Of course, making money is more difficult than spending it out. Money management may become your favorite part of your daily routine, if it does not seem to be boring for you. In most cases, it requires a lot of concentration, time, and energy. Just remember one famous saying: “No pain, no gain”.
Instead of wasting your money take strict control over it. Believe that a little planning will definitely make a big difference and, as a result, you will find this article helpful. Take easy steps towards your financial independence.
Paul Smith writes articles. Paul is always willing to implement his knowledge and experience into his writings. Hope you will enjoy his article.