Student Savvyness Series #2: Pay Yourself First & Budget, Budget, Budget (ggrrrr...)

  

  Why bother to keep track of my expenses?

     Many college students think it's unneccesary and a bothersome routine. Heck, I used to say the same thing. Its crazy enough that we have to keep up with academics and our social lives. And I've been there. I remember when I used heard to hear the word "budget", I used to cringe at the thought that I would always have to keep writing down my expenses.  I thought I would have to continously keep an eye on my online bank account. I imagined I would have to give up going out to eat, going to the movies, and hanging out with friends as much. BUT on the contrary... Being a  frugal college student is not about giving up all these fun activities, it's about knowing how to make the most out of the money that is within your spending means.
     Just a couple of tips to start being money savvy:

 

          1. Save! a.k.a Pay Yourself First: One of the habits I first started forming was saving a bit of cash. I always set aside a portion of my small income to put into a secure savings account. I actually have two accounts. One for long-term goals (a car, home, etc.) and one for the short-term goals (tablet, trip to Europe, etc.). I am sure you will be thanking yourself later with that purchase of a new car or whatever your heart desires. Plus, it's always a good idea to have an emergency fund.

         2. Budgeting: Now, you don't have to write down every dollar that escapes your wallet. At least, that doesn't work for me. You can make your own spreadsheet to set amounts that you are willing to spend in every area of your financial life. Remember, the most important group should be your bills and necessary expenses, such as cellphone, food, gas, etc. If you have no bills to worry about, then you just have to worry about the next set of expenses! Next, you can allocate money for entertainment, shopping, dining, weekend escapes, etc. Always leave room to enjoy the money you make! Budgeting is great because this will allow you to live within your means and you will definetely have money for everything you planned for.
          Personally, I use the envelope method. I prefer cash then swiping a debit card. It makes it easier for me to trace my spending. Try figuring out how much you spend in a month (maybe by saving receipts) and start tracking where your money goes. In a few months, you'll see how much control you have over your money and NOT how much money controls you.

 

    Recently, I had to get two jobs to help out my household financially. It's been tough for me, but I've been able to live comfortable within my small income. So far, I've learned a lot about controlling my spending and having a better outlook on my finances. Budgeting has worked wonders for me! It's a evolving experience and it's a longwhile process. It's about learning how to handle your financial situation wisely. What works for me, might not work for you. Its a good time to start managing your finances at such a young age. I know for a fact that I want to be in charge and in control of my money and that I want to start learning now.
      Don't be discouraged if it takes awhile to get used to this particular way of living. You will certainly reap the benefits in the future. Spend wisely and always be on the look out for money-earning opportunities on campus and in your community. Good luck and feel free to share any tips!