Let’s face it: Managing money sucks. During this recession, many college students are feeling the harsh effects of rising tuition and expensive textbooks on tight budgets.
It can be especially hard to manage money when you’re short on time and Starbucks and Qdoba are so close to campus.
In lieu of starving, the best way to manage your money effectively is to create a budget.
Budgeting may be a tedious task, but it can be worth it in the end when you find you have extra money for the weekend.
The first step is to track your expenses and your income. Education.com has a nice budget worksheet you can use to do this.
List the major expenses first: tuition, rent, utilities, transportation and medical.
Then list the amount of money you get from outside sources, such as your parents or your job.
Next, spend some time (a week or more) tracking how you spend your money. Save your receipts from every transaction, and at the end of the week add them together. Most likely you’ll see most of the money that disappears goes to smaller expenses or impulse purchases.
Once you have a good idea of your money situation, it’s time to trim the fat.
Cut out some of the unnecessary expenses.
Those peppermint mochas may be delicious, but try making them an occasional treat instead of a daily routine. If you’re a coffee addict, invest in a good coffee maker and some bulk coffee. You will spend pennies instead of $5 per drink.
A problem that breaks many budgets is impulse buying. This can be attributed to anything from grocery shopping on an empty stomach to browsing at Target without a list in hand.
Make a list before you shop, and always eat before grocery trips. Being prepared is the best way to avoid impulse buying.
In addition, make it a habit to use cash instead of credit or debit cards.
The best way to avoid using plastic is to take out enough cash for your allotted budget for the week, then freeze your cards. Literally.
Put your cards in a plastic container, fill it with water, and then freeze.
Just imagine how much more effort it will take to buy takeout when you need an ice pick to pay for it. When you need to take cash out again, thaw your card at room temperature.
By cutting out impulse and unnecessary purchases, maintaining your budget will be easier than you thought.
Make sure to save receipts and bills, and keep track of debit and credit card purchases online or by writing them in a checkbook.
Being careful and frugal with your expenses can save a lot of money and stress.
And when the new Harry Potter in 3D rolls around, you’ll be glad you didn’t max out your budget.
[email protected]
Creating a budget saves money, prevents stress
Daily Emerald
September 17, 2010
0
More to Discover