One of the most important things you have to learn in life is how to handle your finances; doesn’t matter if you are a student or working class, you have to be able to budget your allowance or salary.
Here are 5 tips you could adopt:
1. COMPUTE YOUR MONTHLY EXPENSES
The first step in budgeting is in knowing just how much your monthly expenses are. Make a list of the essentials and how much is needed for each so you can adjust your lifestyle and expenses accordingly.
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2. TRACK AND ANALYZE YOUR SPENDING
In college, you’ll learn the basics of collecting and analyzing data. Put those skills to practical use by tracking your expenses daily and comparing them week-by-week and month-by-month.
It doesn’t matter if you do it in a notebook, spreadsheet, or a budgeting app. The important thing is that you know exactly where your money is going so you can save up more. Whether that extra goes to a savings account for the future or to add your funds for the fun stuff is entirely up to you.
3. PAY BILLS ON TIME
Missing a payment can incur penalties and you never want to spend more than you need to for anything — especially the essentials. Keep up to date with the list of imperative bills like rent that you have to clear up before they are past due
4. MIND YOUR DINING OUT EXPENSES
While there’s nothing wrong with going out with friends, you’ll quickly realize that it can cause a serious dent in your budget. This isn’t to say that you can’t have fun, but maybe don’t eat out every weekend. Get some cooking tips if you do not know how to prepare your own meals. With a little creativity, preparing food and even coffee at home will always be cheaper and healthier for you
5. GET A SIDE HUSTLE
If you really think that your allowance or salary isn’t enough for your needs and wants, get a side job. At this point, you should be of-age and have built up enough skills to take a few odd-jobs for neighbors, an online gig, or even a part-time job at a shop, restaurant or cafe.