As a college student, I have noticed that to my peers budgeting is mostly a complex and misunderstood topic. Most people cringe when they hear it and think about eating nothing but ramen and shopping for clothes only at Walmart. I am here to spread the word that budgeting can be easy and painless if done right. I have compiled some simple and easy-to-follow tips that can make beginning budgeting a reality for anyone.
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Keep Track
This is one of the simplest ways to get started with a budget, and with today’s technology it’s as easy as downloading an app. It’s safe to say that most of us have at least one debit or credit card tied to an account, and dealing in cash is slowly becoming obsolete. However, that can also be a bad thing. When I use my debit or credit card to make purchases, it is often too easy for me to not think about the amount I am charging to my card, which puts one in danger of overspending and overdrafting your account. The good news is that most banks and credit unions have smartphone apps that let you track transactions and see your real time balance. So make sure you always have access to view your current balance and recent transactions, which can keep you from overestimating how much money you have.
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Evaluate Your Expenses
Once you are in the habit of keeping up with your transactions, you can then look back on the past month and see if you can spot any unnecessary expenses. The most common one I have come across is a gym membership. Now, before you go on and tell me how you are going to get in shape this year (it’s September by the way), consider how many times you have actually been. More than likely you don’t go to those yoga classes as much as you would like, and memberships can run you upwards of a few hundred a year. And need I mention that running is free? Coming in at a close second are those $5 lattes we all think we will die without. Now I love a good cup of coffee as much as the next sorority girl, and I am not suggesting to quit the addiction cold turkey, but maybe consider limiting your drinks to once or twice a week and making them more of a treat than a daily expenditure (you can all thank me later, frappuccinos have 83g of sugar). Whatever the case may be, comb through your charges and see if there are things you could cut out to save yourself some dollars.
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NEVER Pay Retail
Another easy way to save yourself some money is to shop around for sales and discounts. Absolutely never pay retail, and no I do not mean extreme couponing. Props to whoever makes that work for them, but more than likely the price of extreme couponing includes losing all of your friends. However, wonderful websites like Ebay and Retail Me Not exist. You can find coupons for most commodities and retail websites on Retail Me Not, and Ebay offers virtually any item for well below retail and even sale prices. My most recent brag includes buying a brand new $189 textbook on Ebay for $4.95, but that is beside the point. Opting for generic brands is another virtual effortless way to cut down on expenses, or even try shopping in grocery stores such as Aldi that offer significant discounts on necessary items. It is okay to splurge every now and then, but making a habit of eluding retail prices will serve you well.
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Start A Savings Account
Starting a savings account is probably the most important part of a budget. A wise person once told me, “live frugally now so in the future you won’t have to.” This is probably the hardest concept for our generation of entitled college students; please tell me what college student needs to drive a BMW. Actually saving money in college may seem like a pipedream, but if you stick it out and make it a habit you will thank yourself later. The first thing you should do whenever you get any sort of income is to always “pay yourself” first. Pick a percentage of whatever you make and sock it away into an interest bearing account. It will slowly begin to build and by the time you graduate, you will have a head start to acquiring wealth. A good way to motivate yourself to keep up with it is to tie it to a goal. For instance, label your savings account with whatever you want to use it for. For mine, I picked a down payment on a house, which encourages me to keep contributing it.
Whether you follow one or all of these tips, keeping a tab on your finances will allow you to have steady wealth in an economy where steady is mostly a fantasy word.
Photosources: http://savvyinspiredwomen.word… and http://www.only4realmen.com/ca…