Before we can talk about managing budget as a student we must first understand what a budget is, so what is a budget?
A budget can simply be defined as a weekly, monthly or annual spending plan, which enables you to work out how much your income is, and compare that to your current spending.
BENEFITS OF PLANNING A BUDGET
Budget planning will help you identify any gaps between your current income and your spending to see if you are over spending or have surplus funds available to you for paying your bills.
But if you calculate it and have a shortfall, which means your income cannot be enough to pay your expenses do not panic as this is not unusual especially if you are trying to manage on a student income, planning a budget will allow you to consider good ways of either increasing your income and/or decreasing your current spending, to take care of your shortfall.
We have writing an article on “IN-SITE ON PART-TIME JOBS” feel free to read it for more information on increasing your income.
It is generally advisable to start your budget planning before the academic year begins so you can easily focus on your studies without having to worry about money.
But if the academic year has already begun don’t worry as you can still totally benefit from planning a budget.
We will be covering on the best ways to plan a budget and the factors to consider before planning a budget so once you have read this advice guide and the information on it, then you should be good to go.
Most students find it helpful to plan a budget over long time frames maybe about nine or twelve months, the longer the better but if you cannot afford that kind of luxury then it could be shorter, which ever suits you.
HOW AND WHERE WILL MY MONEY COME FROM
Before making a budget plan you need to know how and when your Income would get to you. Making sure all the income entitled or sent to you by your sponsors gets to you is as important as being careful on how you spend it. So go out and do some research on how best to receive money from your country while incurring the lowest of debt doing so.
THE COST OF LIVING
Different countries and states have different cost of living, you want to make sure your current income can cover that or you would have to start looking for a part time job to supplement that. Most universities provides accommodation or hostel for their students which is often less cheaper than housing off campus, so you might want to consider applying for a hostel.
WHAT CAN I DO TO AVOID OVERSPEND?
Spending money is very easy. Companies use lots of clever marketing strategies to encourage us
To keep on buying things even things we really don’t need and basically can’t afford most of the times.
This section lists some really practical ideas you can employ to help curtail your spending and stay in control of your money.
1. Think about your current attitude to money, and why and when you spend money impulsively. Then you try to avoid those situations.
2. Try not to allow money to determine what your self-worth is or who you are. If you can understand this then you will only spend for the right reasons and not the wrong reasons example is peer pressure and worry about keeping up with other student’s lifestyles or spending habits.
3. Reduce the amount of money at hand. This helps a lot to reduce unnecessary day-to-day spending.
4. If you still have problems with money handling then speak to a Counselor you might pick up few tips and tricks that can help you better manage your money.
5. Know how long it takes before you can get fresh income from home and plan for that delay too.
You are advised to always put your money in the bank for safe keeping but in the event where the banking system is not robust enough or still in the development stage then you are advised to always withdraw enough spending money to last you for a week and nothing more.
WHERE TO KEEP THE MONEY WHEN SHARING THE ROOM WITH ROOMMATES IN THE HOSTEL
It is better safe than sorry, so you need to carry the money around you at all times and when you heading out you can slip the money in your bag quietly while no one is watching and then lock the bag and keep it somewhere safe.
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