Do you eat ramen every night and are sick of it? Is debt keeping you awake at night? College is rad, but money is tight. Studying finance now prepares you for future success. Here are some important strategies that will help you reach pro status in managing money!
The Essential Guide to Budgeting for Broke Students
Budgeting may seem dull, but it’s your path to financial freedom. It’s about keeping track of your spending. (A budget that’s smart also means letting go of some financial stress.)
How to Make A Realistic Student Budget
First, track your income. This can be through student loans, perhaps a job on the side, or assistance from the family. Next, list every expense. Consider your budget, including tuition, rent, food and fun. You are too easy to use budgeting apps and spreadsheets. Check out this sample budget:
Income: $1,500 (loans, job)
Rent: $600
Food: $300
Books: $100
Fun: $200
Misc: $100
Savings: $100
03-Identifying and cutting unnecessary expenses
Pay attention to where you’re spending money. Things you could scale down on? Negotiate bills if you can. Explore free activities around campus. Have meals at home instead of dining out regularly. Even small change can make a great difference.
The 50/30/20 Rule, Explained for Students
This rule helps you understand your spending. 50% goes to needs: rent, fuel, food. 30% to wants, such as entertainment. 20% for savings and debt repayment. Say your income is $1,000. $500 for needs, $300 for wants, and $200 for savings. It is a wonderful way to spend money.
From Getting to College to Giving Back: Smart Saving Strategies
It might feel impossible to save, but any bit will add up. Go small to go big. Saving even a small fraction is smart.
Establishing an Emergency Fund (Even If You Can Only Save A Little)
Life happens. A couple of thousand saved gives you peace of mind in case anything diverts from the plan. Aim for $500 to start. Establish automatic transfers from checking to savings every month. Even $25 a month will add up fast.”
Making the most out of student discounts and offers
Never forget to ask for a student discount. Many places offer them. Find deals on software, entertainment and travel. Your student ID is your best friend. Use it to save money wherever you are able.
34 Ways to Save Money on College: Saving on Textbooks & Course Materials
Textbooks are expensive. Rent or buy used textbooks or share with friends. Some professors place textbooks on reserve in the library. Check there first. Also check for digital versions.
B — Responsible Borrowing of Student Loans
Student loans can be terrifying, but knowing about them is half the battle. Borrowing smart and repaying them smart. Knowing the ins and outs can help save you money down the line.
She specializes in student loan forgiveness and repayment plans.
FEDERAL LOANS: These come from the government. Private loans are from banks. Federal loans typically come with more favorable terms. Subsidized loans don’t accumulate interest while you’re in school. Unsubsidized loans do. Know the difference.
Borrowing Only What You Need
Don’t borrow more than you need to. Compute the total cost pre loans. Interest adds up over time. Borrow $10,000, at 5% interest, over 10 years, and pay back about $12,730. Borrow only what you need.
Look into your options for repaying your student loans
There are a lot of different repayment plans. Income-driven repayment plans adjust payments based on your income. Certain occupations have the potential for loan forgiveness. Do your due diligence. It may be a big relief from loan stress.
Making Money as a Student
Working while you’re in college is a good plan. If that means getting a job, then seek flexible work that matches your schedule. Do a look for freelance and online jobs.
Flexible Shifts Suiting Your Timing
Tutor other students. Work as a freelance writer. Deliver food. A lot of jobs cater to students. These professions help you to balance work and study. A student had a job as a virtual assistant and was paid $500 a month.
Downlines, Commissions, and Sales Structures
Freelance websites find clients for you. Provide writing, design or coding expertise. Visualize your profile online in alphabetical order. Promote your skills to prospective customers. This allows you build your resume and earn.
Making Money through Your Passions
Turn your skills into income. Sell crafts online. Teach music lessons. Offer photography services. A student made jewelry and sold it on Etsy. Find your talent and profit.
Conclusion
College budgeting doesn’t have to be stressful. The key is budgeting, savings and wise borrowing.” Having a side income also helps a lot. Act now and learn to master your finances! Follow this article for friends! Leave a comment sharing your own money tips!
