New professors, exciting classes and meeting strangers – college is exciting but also worrisome.
With so much going on, it’s easy to let your finances slip out of the hole, leading to long-term repercussions that may follow even after college.
By planning your finances at the beginning of each semester, you can expect to be more successful (and way less stressful) academic year.
Here are some tips to help you get less money out of your studies.
1. Take an inventory of your expenses.
You may be paying for your college tuition with student loans, savings, scholarships, or gifts, as opposed to the income you earn during your studies (or in addition to it). Regardless of the source, you will want to stretch your money as much as possible.
To figure out how much money you will need, you first need to make a list of your expenses.
Costs fall into two main categories: your fixed expenses and your miscellaneous expenses.
Your fixed costs
You have to set aside money for fixed expenses every month, every quarter, or every year. For a college or graduate school budget, these costs may include:
- Education.
- Books.
- Rent.
- Utility bills.
- Foodstuffs.
- Debt payments.
- Insurance.
other expenses
Concerts, walks, clothes – all this refers to different or “irrelevant“Category. These expenses are expenses that you can live without, even if quicker no.
Although these costs are not necessaryIt’s important to have fun every now and then, so make sure you add some fun to your budget!
2. Make a budget that doesn’t exceed your income
In order to come up with a realistic budget, it is important to first know how much money you are getting.
if you are take student loans that is more than the amount you owe your school, you will receive a lump sum payment at the beginning of each academic semester. This can be used to cover other college-related expenses such as books or off-campus living.
However, many college students have to take jobs and participate in work-study programs to make ends meet. In order to be sure that your money is enough, it is important to consider all your income.
You will need to carefully ration this money. Here’s how you can do it:
- Divide the total payment by the number of months in your academic semester. This will help you find your monthly benefit. For example, if you get paid every semester, you must divide the pay by four (typical semester).
- Add your monthly allowance and any other monthly income (your job, job-study, etc.) to calculate the amount you should budget for.
- Make sure your expenses do not exceed your monthly income. If they do, you will need to find ways to cut back or make more money.
3. Have an expense account and a reserve account.
Pay yourself a salary every month (or every two weeks) to cover your fixed costs, plus a set amount for miscellaneous expenses.
Leave this money in your main bank account, which will become your “expense” account. Any remaining money must be deposited into your “reserve” account. This will help maintain order.
After you run out of funds in your expense account, you will need to wait for the next scheduled “payday” to spend.
4. Avoid temptation.
To be successful with a college budget, you need to learn how to control and spend your money.
Remind yourself that you have a certain amount and this is it… It’s like a business budget: even if there is more money in this savings account, you should pretend it doesn’t exist.
Thinking, “If I spend a little more in December, I’ll just transfer more from my reserve. ”Indicates that you will advance to the next semester and eventually you may run out of shortage.
5. Create an emergency fund.
Even college students need some kind of emergency fund that they can count on.
First, it will relieve stress a little in case of unforeseen circumstances. Second – and perhaps more importantly – it will keep you out of credit card debt.
Establishing an emergency fund is not a problem:
- Open an easily accessible savings account. It is advisable that this be in the same bank that you use for verification so that you can easily transfer money in the event of an emergency.
- Save one to three months on this bill. This may take a while, depending on your income. This is a great opportunity to use all the money given to you at the prom.
- Whatever you do, do not touch this money, unless it is an emergency. Tickets for Olivia Rodrigo don’t count!
6. Use your credit card wisely.
Credit cards there are some of highest interest rates there – some even up to 35%, plus interest immediately begins to accrue.
You don’t want to go into debt while still in school. Aside from student loans (if you have any), it’s best not to dig yourself into a hole you can’t get out of.
However, there are many benefits to using your credit card responsibly, including: awards and cash back… Plus, making timely payments can help you build a positive credit history that can have a big impact on your life. after college.
To avoid overdoing it, don’t treat your credit card like a debit card. Also, make sure you only charge your credit card as much as you can repay each month.
7. Be aware of discounts.
One of the benefits of going to college is that you get access to many discounts that non-students cannot get. From restaurants to entertainment and transportation – and even subscriptions – you can save a lot of money simply by showing your student ID or a copy of your class schedule.
Here are a few companies where you can use your student status to your advantage:
8. Buy used textbooks or consider renting.
I remember that over 10 years ago, textbooks cost me $ 500 a semester, and sometimes more. You can save up to 90% on the sticker price if you buy them used.
If you don’t want to spend all this money, you can consider renting textbooks for a semester. For example, Amazon has thousands of textbooks available for rent for up to 90 days.
The best part? The books are delivered to your door and you can request an extension if you need them for a longer period.
9. Make money on textbooks.
Finally, remember to recoup some of your textbook budget by selling used books when you’re done with them.
To do this, post them online on sites like eBay, Chegg, or Amazon. Alternatively, check with fellow students and faculty to see if they know anyone hunting for your specific textbooks.
Organizations such as National Association of Student Nursing Foundation and American Society of Civil Engineers offer students access to scholarships and other grants to help cover tuition costs.
In addition, joining a degree-related association can help you establish contacts, find paid internships, and even work after graduation.
11. Carefully weigh your options for obtaining a loan.
If you take a private loanare worth looking at as they tend to have higher interest rates than federal student loans, in addition to fewer repayment options.
Your school may recommend some lenders, but that doesn’t mean they are the best option for you.
So make sure you research other lenders by doing some shopping online… You can do this by visiting comparison sites like Credible…
Summary
Now that you’re ready to take charge of your college budget, here’s a rundown of the key points to remember.
First, find out how much money you have per semester between student loans, scholarships, income and savings. If you are using private student loans, be sure to evaluate your opportunities to save on interest.
Once you know how much you have, subtract your total costs. These expenses include tuition, textbooks, housing, insurance, and so on.
Then divide that by the number of months in the semester. At the beginning of each month, transfer this amount from your reserve account to an expense account.
Finally, stick to your budget, take advantage of discounts, and if you have a credit card, use it responsibly.
Following these tips will give you peace of mind and confidence in a successful semester, as well as confidence that your budget won’t let you down!
