Finally, the new year has begun! With that being said you may have created 2020 resolutions, or goals, for yourself to accomplish this year. One of mine is to budget my money more efficiently, since I am a college student. Many of you may share this same goal. I have come up with a few techniques to help you create a budget that is manageable and accounts for your expenses.
To start the budgeting process, I would recommend checking your bank account from the previous year. Writing down all of your expenses can seem intimidating but I found it easier to break down costs monthly. Find the average amount you spend each month, whether that includes rent, groceries, books, shopping, or gas. After doing this I’d suggest choosing an attainable goal for spending. For example, rent is a fixed cost, therefore that amount won’t change. However, imagine that you spend fifty dollars a month shopping on clothes or beauty related items, which is a variable cost (an amount that varies). Give yourself a limit to thirty dollars a month. Instead of spending six hundred dollars by the end of the year you would have spent three hundred and sixty dollars, saving you over two hundred dollars. That is a significant amount of saving that can be used for necessities such as groceries, gas, or utilities.
Another tip I have is to have no spending days. Pick a day or two out of the week and do not spend any money. For example, if you pick Tuesday do not spend any money the entire day. Unfortunately, that includes drinks from Starbucks after class or shopping the ULTA Beauty sale that ends Wednesday. Try to limit spending. This is a subtle way to incorporate saving, especially if you are someone who wants to ease into this process.
Similar to the no spending days, plan for spending days. Now before you get the wrong idea, I am not suggesting days where you spend a ton of your savings. Plan for times of the year when you know you will be spending. During the holidays you will typically make more purchases than normal so account for that. Christmas is a big one in particular. Instead of spending hundreds in December, try planning out gifts ideas ahead of time and begin looking for sales in November. Perhaps your significant other, parent, coworker, or roommate’s birthday is in April. Start setting aside money now to purchase or make a homemade gift, as those tend to be more thoughtful. Rent is typically due at the same time every month. Groceries are bought at least once a week. These fixed costs cannot be avoided. Be cognizant of when your bills are due so that you may budget accordingly and can afford the extra expenses. Start thinking ahead so when the time rolls around you will be prepared.
Use your phone! Believe it or not there are numerous apps you can try that will help you save money both through discounts or promotions, and even cash back opportunities. One app that I use is UNIDAYS. A classmate recommended it to me at the start of the year. Sign up with your student email account and pick and choose what companies you want to receive the discounts from. The deals I have used so far range from $5 off to 20% off!
One last tip I have is to make meals at home. TRUST me, I know you want that morning breakfast sandwich or your favorite Chipotle bowl but resist! Make an effort to cook on the days you have flexibility in your schedule. If that doesn’t work find a day throughout the week where you can meal prep. (Pinterest has a ton of ideas for this). When your busiest day of the week rolls around, and you’re tired and still have three chapters to read and a paper to write, you will be glad you can easily grab dinner out of the fridge. In a different scenario if you typically go out to eat Friday and Saturday night with your friends, try going one day instead of both. This trick will make a huge difference in your spending.
Living in a world where there is a cost for everything is not ideal. With these tips you can learn how to make the most of the money you have earned and hopefully find a budgeting strategy that works best for you. It is not always easy but the end results will be worth it! (And hey, if you aren’t able to do any of these ideas simply set aside part of your paycheck and put it into your savings. It’s that simple).