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As a student, you often feel like your monthly money is running out fast. Either because of the high cost of living, unexpected expenses, or the temptation to have fun. Managing finances is indeed a challenge, especially when having to adjust between daily needs and expenses is not important. However, you don't have to worry! Budgeting or setting a budget is the right solution to this problem.
Budgeting helps you, especially students, to have full control over your finances. You will know where your money is going, and be able to plan the use of the money more wisely. Well, in this article, we will discuss some budgeting tips that are easy for students to do in order to be economical but still smart in managing finances. Come on, check out the following tips!
The first step in budgeting is knowing your financial situation clearly. The trick is to record all your expenses and income each month. Do not miss anything, even small expenses, such as buying coffee or a snack in the cafeteria.
You can write it down in an app, notebook, or spreadsheet on a laptop. From here, you'll get a clear idea of your spending patterns, which ones are important and which ones can be reduced. By recording expenses, you can also be more aware of spending habits that may be less efficient.
Saving money is not difficult if you are disciplined. One effective way to save money is to separate your savings at the beginning of the month, before you start spending it. Perhaps the amount is not large, but if done consistently, you will be surprised to see results in a few months.
You can allocate about 10-20% of your monthly money to save. That way, you have emergency funds for unexpected needs, such as medical expenses, campus assignments, or even for vacation purposes.
One of the common mistakes college students make in managing finances is spending too much money on things that are desires, not necessities. For this reason, it is important that you separate expenses into two categories: needs and desires.
Needs such as meals, transportation, and tuition should be a top priority. Meanwhile, wishes like hanging out at a cafe, buying new clothes, or streaming entertainment services can be done if you still have leftover from your budget. Learn to postpone the desire if it is not too urgent.
You don't need complicated methods to manage your finances. One of the methods you can try is the 50/30/20 method. In this method, you will divide your insertion into three parts:
By using this method, you can more easily manage your expenses and ensure your money is well allocated.
Read more about budgeting with the 50/30/30 method: Budgeting Ways to Make Your Life More Economical with the 50/30/20 Rule
In budgeting, it's crucial to be wise in choosing which expenditures really matter and which ones can be trimmed. For example, if you often hang out at a cafe every week, try reducing the frequency to once a month. Or, if you often buy food outside, try to start cooking yourself to save money.
This small reduction in expenses can have a big impact on your finances. You'll feel more relieved that your money doesn't run out quickly for things that aren't really essential.
In addition to managing expenses, you can also increase income by finding additional sources of income. Many college students work part-time, become freelancers, or join affiliate programs to earn extra money.
With additional income, you can be more free to organize your budget and even increase the portion of savings. But make sure, the side jobs you take don't interfere with your college schedule or your duties as a student.
A minimalist lifestyle does not mean that it should be stingy, but rather focus on really important and useful needs. By adopting this lifestyle, you will be wiser in spending money, as well as placing more importance on quality than quantity.
For example, instead of buying clothes every month, it is better to choose quality clothes that are durable. Or, before you're tempted to buy the latest gadget, consider whether the gadget you have is still working properly and can be used for longer.
A minimalist lifestyle helps you control spending and avoid unnecessary consumer spending.
Emergency funds are often overlooked, when they are very important in budgeting. As a student, you should set up an emergency fund to deal with unexpected situations, such as health expenses, sudden college assignments, or other needs.
The size of the emergency fund can be adjusted to your financial condition, but ideally about 3-6 times your monthly expenses. With an emergency fund, you don't have to worry if at any time things happen that require extra money.
In today's digital age, there are many apps that can help you manage your finances easily and practically. One of the applications you can try is FINETIKS.
FINETIKS is a personal finance management application that helps you record transactions from all your financial accounts. With this application, you can easily monitor expenses and income, create a budget, and view daily financial statements. FINETIKS provides options for those who want to record transactions by manually adding accounts, so you have full control over your financial settings.
Currently FINETIKS is still in the process of development, but the application is already widely available in Google Play and also App Store. You can try it right away to feel the benefits of easier and organized budgeting.
In FINETIKS, you can go to the Expense menu, then select Category by pressing “Needs” or “Wants”. Then select Spending Categories, click the Set Budget button, and finally you can set the nominal amount and budget period. With these features, it will be even easier for you to monitor and manage your finances to stay in control.
Managing finances during college is not always easy, but by applying the budgeting tips above, you can be more economical, smart, and wise in managing money. By budgeting, you can not only meet your daily needs well, but also save money and prepare for your financial future. Let's start managing your finances effectively with FINETIKS, and feel the ease!
