Life as you know it has changed. You are no longer thriving off the funds of your parents, but are instead challenged to find your way as a college freshman.
Living in the dorms or even in your own apartment, adjusting to school as well as living on your own can be overwhelming and expensive.
Here are seven tips for staying on budget as a young adult for the first time.
Keep the Necessities and Forgo the Luxuries
You need groceries to survive, but you do not need to go to the movies every weekend. Investing in the bare necessities first is the best way to live within your means as a college student. Take stock of how much you have or earn and make sure you have enough to get buy before spending in non-essentials.
Build Your Savings Account
Emergencies are inevitable and are the biggest threat to your budget. One flat tire can cause your financial plans to spiral out of control if you don’t have a backup plan. Building your savings account is the best way to ward off crises caused by miscellaneous expenses. You should make every effort to set aside at least five percent of your earnings for a rainy day.
Take on an Extra Gig
You can have your day job and also add on a weekend gig if funds are lean. Many college students work part-time jobs and find that their expenses far exceed earnings. You might walk the neighbor’s dog or take on babysitting gigs to supplement regular income.
There is something about having cash in hand that causes consumers to exercise more discipline. Restricting Yourself to cash will force you to consider if the purchase is a need or want. You can even find extra cash with missingmoney funds for lost money. Just check out what you might be eligible for.
Share the Financial Burden with Roommates
It is not fair for you to pay the rent and furnish food all while your roommates keep their funds. You have to exhibit firmness when talking to your friends about their financial responsibilities if you ever hope to stay on budget. Make sure everyone has a fair share of responsibilities for the house.
Decline to Charge
A credit card should always be your last resort when in college. You should not use charge cards to pay for a night of fun or an adventure because the interest rates associated with revolving credit can cause you to go over budget. Purchase what you need and venture into your wishes only when there is disposable income to do so.
Monitor Your Expenses
Keeping your receipts and calculating how much you spent the month prior can help you with this month’s budget. It is always a good idea to know where your money is going.
Life in college can be challenging, but it does not have to be impossible. These tips can help you stay on budget and live as a responsible adult.