One of the main things students struggle with is handling their finances. Almost every student ends up borrowing to help cover the cost of their studies, while quite a few also seek out further student loans to help afford rent, food and other necessities. As well as having enough money at the start, it is important students create a smooth cash flow throughout the year. There are many ways that this can be done.
1) Budget Termly
Creating a budget is a must for every student trying to adequately manage their cash flow. It will highlight where there are income shortcomings and what can be cut back on from the expenditure. There’s little point budgeting for the whole year though, as student loans and grants come in each term, so base your budget around this. If you do fall short, then there are further finance options available from Smart Pig.
2) Use Online Apps
Few students will budget thoroughly, by sitting down with a spreadsheet and inputting every single penny they spend. Thankfully there are a number of cheap, free and useful online tools and downloadable apps that can be used to make this process easier. Most just involve inputting basic earnings and spending and will quickly work out a budget for you to stick to.
3) Seek Discounts
Discounts are the highlight of being a student. Invest in an NUS card while you can and look out for where it can be used. It can be a great way to save on everything from food to clothes, as long as you know where to go. Students are also exempt from paying certain bills like council tax, while you can get a lot of necessities cheaper by purchasing second hand.
4) Set Financial Limits
As well as budgeting, and a great way to enforce it, you should set, or have someone else set, financial limits for certain items. For example, have a spending limit for luxury items each month. This will make you think twice before making any extravagant purchases.
5) Boost Income
A decent income is required to create a smooth cash flow, so if you’re running low then consider getting a part-time job. It could be anything from bar work to filling in online surveys, the more you have coming in, the more can go out. If you’re a student, take note of these tips to help manage your finances better.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.