Living alone as a student in a different state or country is both exciting and challenging. You are away from home and family for the first time and need to be responsible for everything you do. The biggest daunting task of living away from your home is money- management. Though the task sounds simple before you make the shift, it is not as easy as it seems. Money saving for students is very important and should be started early.
Since, you are a student and need to study too, it is not possible for you to take a full-time job and juggle both academics and finance with equal elan. Today’s post will give you some effective money saving tricks if you plan to study or are already studying away from home. So, let us get started with them below-
1. Make a budget
This is the first step for you to save money. It is simple for you to be aware of not eating out regularly, cutting down on your travelling expenses etc. However, when you make a list of what goes in and comes out of your bank account, it becomes simpler for you to manage money effectively. The budget will help you to focus on your purchases better and you are able to save money without worries.
|Tip : When it comes to creating your budget, you no longer have to sit down with pen and paper anymore. Make use of the smart budgeting apps that are available on the Google Play Store. Choose the one you like and download it on your smartphone to get started. In case, you do not have a smartphone, open an excel sheet and make a list of your income and expenses to keep track of money.
2. Do not buy a car now
Cars are one of the most expensive purchases for a student. Getting that car is simple however, consider its upfront costs like maintenance, fuel, parking and insurance. You can save a lot of money by using cheaper public transport. If you really want to save money on commuting to college or university, stay in student housing units near the campus. You can walk to your classes and the costs of transportation will be nil.
3. Be aware of student discounts
Being a student sure does have its advantages and one of them are student discounts. You can save on retail, movies, travel food and even software if you are aware of where to look. There are specific sites that offer students discounts like UNiDays, Save The Student, Student Beans etc that give you attractive discounts on your purchases. Browse through these sites and save a lot of money on entertainment and other areas that makes you eligible as a student.
4. Set goals for savings
This is a great money saving habit for students for emergencies. Keep aside some percentage of your income every month as savings. You can start small however, this does go the extra mile when it comes to keeping money aside for a rainy day. Make sure you do not touch that money and if possible, you can always set up a different bank account dedicated to savings only. Try mutual funds as they are very easy to invest for beginners using Groww, Zerodha, PayTM.
5. Reduce spending
You need to discover ways to reduce spending and some tips for you as a student are-
- Cancel the memberships and subscriptions you do not use anymore especially the ones you have set to auto-renew.
- Eat out once a once and look for affordable places
- Gift yourself the “cooling period” for any non-essential purchase. Just wait for some days if the urge for a non-essential purchase suddenly surfaces. You will be happy when these days pass or you get the time for saving up on it.
6. Decide on your spending priorities
Remember as a student, you need to set priorities as to what you need to buy like groceries, toiletries etc. Make a list of the essentials you need every month. This will help you to curb purchases that are non-essential in nature.
7. Swap text-books
Instead of buying every text-book, you can swap them with fellow students. You can also become a member of the student library and take out photo-copies of the important chapters you need for reference when it comes to your studies. Here, you do not have to buy the reference books at all. This helps you to save money and you can focus on your academic goals on the same time too!
Being a student away from home is not hard if you keep in mind the tips listed above. Your parents or guardian will be happy that you are not disturbing them with money demands. Moreover, these tips are your first step for financial independence and in the process will hone your money management skills for wealth-building in the future as well!