by Akarsh Kapoor
2nd Year (CSE)

 One of the most exciting periods of one’s life is college. For students, nothing compares to the exhilaration of starting college. College is an experience that allows us to explore, try new things, and make our own decisions on a larger scale. You look forward to spending your college years on cloud nine, and after you graduate, all you want is to do it all over again. While at college, you learn a great deal, including academics and many life lessons. Money management is one of them. Though college is a great time in our lives, it can also be an expensive investment. Positive financial decisions and personal accounting will help make your life after college more manageable.

Do you really need a Budget?

Balancing a budget is a key asset to develop in life. Although budgeting may appear to take the pleasure out of your life, it is critical to have a strong awareness of your financial situation. How will you handle your finances when you have enormous fat paychecks or are the founder of your own start-up if you can’t manage tiny amounts of money at this age? For those of you who are still having trouble managing your finances in college, here are some suggestions to help you stick within budget.

Have the ‘Talk’

It’s time to talk about it. Before you start creating a budget:

  1. Talk to everyone who will be involved in paying for your education.
  2. Discuss who will pay and the expected expenses.
  3. Take advice from your seniors who can help you with the budget planning, as they have initially gone through the same phase.

Keep track of all your Expenses.

It is for everybody to understand where their money comes from and where it is going. Keeping track of your expenses will assist you in identifying areas where you are overspending and wasting money. You can keep track of your expenses on paper or in Excel. You may also use Money Management Apps to set budgets and keep track of your costs.

Follow the 50/30/20 rule

In reality, the rule is extremely simple. It asks you to divide your in-hand income into three parts. ‘Needs’ receive 50% of the income, ‘wants’ receive 30%, and savings and investing/savings receive 20%. In this way, you’ll have set buckets for everything and operate within the permissible amount for each bucket.

Separate Wants from Needs

All of your costs should be divided into two categories: necessities and luxuries. The necessities must be paid regardless, while the luxury items can be postponed depending on your financial situation.

Proper investment knowledge

Taking soft skills training, such as improving your presentation skills or attending a seminar/conference, are examples of self-investment. These expenditures may not yield immediate results, but they will assist you in obtaining better wage packages and more clients for your own start-up. If you still have money after you’ve spent it on yourself and made all of your investments, don’t let it sit dormant. Start investing it somewhere that will not only provide you with good returns but will also teach you about other investment options. For example: investing in stocks.

Keep track of the amount lent/borrowed from Friends

Keep track of your debts and make sure you have enough money to pay them off. Always keep your pocket money separate from the money you borrowed from friends, as you don’t have to repay your pocket money, but you must return the money borrowed from friends.

Resist Peer Pressure

A lot of spending nowadays is happening because of peer pressure. Most people buy phones, phone accessories, and gaming gear not because they need them but because their buddies do. It is essential for students living on a practical, fixed budget to reject peer pressure, allowing them to save a significant amount of money.

Avail discounts wherever possible

Students spend a significant amount of money on books, stationery, and similar items. This can be readily avoided if students purchase books in bulk. If you buy a lot of books, store owners often give you a discount. Keep track of various online scholarship tests, which provide you with massive discounts on educational courses. Using browser extensions such as Honey recommends coupon codes every time you visit an e-commerce store. Money saved is money earned, so students should take advantage of every opportunity.

Follow Your Budget

Once you have outlined your expenses, the next challenge is sticking to your budget. Make it a habit to review your budget frequently. Regularly reviewing and maintaining your budget can help you stay on top of things and avoid getting caught off guard by something unexpected. Allow yourself to forgive minor expenditure errors and get back on track. The majority of people overspend because they make impulse purchases. Sticking to your college budget may assist you in this endeavour. Keep looking for ways to save money regularly to assist you in achieving your ultimate goals.