Budgeting. A nightmare for all first years (and most definitely a nightmare for me).
We’re navigating a world of financial independence, and it can be hard when everything looks so enticing; the temptation to spend is unavoidable- constantly. Whether it’s grabbing a coffee on the go, ordering takeout after a long day, or spoiling yourself, it can be hard to not spend when everything you want asks for money.
I’ve certainly had trouble trying not to declare bankruptcy within the first month of school; but can steer clear of financial collapse with these simple techniques.
Track Your Spending
The first step to controlling your budget is making sure you have an eye on where your money is going. This was definitely the hardest step for me. Apps such as Mint or YNAB can help you keep track of your money. Alternatively, you can even just make a spreadsheet like I did at first (just make sure you know how to use Excel).
Create a Realistic Budget
Saying that you plan to spend twenty euros in one month is not realistic for most people. It’s good to start by making a list of how much you want to spend on essentials and wants, and then re-examining to try and see what is an unnecessary expense. Don’t forget to leave flexibility for unexpected costs!
Cut Unnecessary Subscriptions
Subscriptions add up quickly. With streaming services, music apps, and delivery apps all demanding a check each month it can be a drain on the bank account. Evaluate which ones you feel you couldn’t bear to live without and cancel the others. Many services also offer student discounts which need to be taken advantage of. Don’t be afraid to take the offer for a free week of subscriptions from these services when they have it. And if your relatives are paying for your subscriptions, celebrate the money you’re saving!
Set Saving Goals
Even on an infinite budget it’s important to save something. Setting up a savings plan for a day, or even a week can be beneficial, and help build the habit of saving in all aspects of life. Spending ten to twenty euros per week is realistic and (with luck) achievable. The small baby steps and goals we make help us reach the larger forever ongoing goal of budgeting.
Plan Meals
Food is one of the biggest expenses for students. I’ve had multiple times this year when I’ve been too exhausted to cook, and have decided to take the easy path of eating out. Planning meals ahead of time has helped me loads. Deciding the meal I want to make and having all the ingredients available is motivating when you just want to give up. Even though it may seem impossible not to go to a restaurant when you feel too tired to make food, don’t give up hope. We’ll achieve our budgeting goals together!
Use Cash for Non-essentials
If you’re having a lot of trouble controlling your spending, use cash solely for your ‘wants’ (entertainment, food, drinks, etcetera). When I spend cash it hurts my soul a little less than when I use my card. With a card it’s easy to swipe and forget how much was spent, however when the cash is gone, it’s gone, forcing you to stick to your budget.
Avoid Impulse Purchases
When you feel the temptation to buy something, especially on a whim, try waiting twenty-four hours. This cooling off period helps you to decide if the object of attention is something you really need or want.
Rely on Relatives
When family is in town, don’t be afraid to let them treat you! You’re a poor college kid, so take every opportunity to enjoy a free meal, grocery run, or even a bit of financial support that your parents may offer. Don’t feel guilty for receiving free help, but don’t take advantage of the aid.
Budgeting is scary, hard and at times difficult to manage in the world we live in. There is just so, so much to buy. However, I know that we can achieve our goals together and more than that I know you can achieve your personal budgeting goal.
You got this!
Featured image courtesy of Unsplash
