Financial Planning and Budget Management Tips for University Life

University is a great opportunity to take control of your money and gain financial freedom. It is a fact that money that is not managed properly leaves behind a pile of debt and financial worries.

It is extremely important to apply the right strategies when budget planning at university. Most of the time, you may not think of it as saving money, but as learning to spend money for better goals.

But do you know how to manage money properly? In this content, we will discuss tips on budget management in student life and much more. Read on to learn more.

1. Check Your Spending First

During the student years, most of your monthly income goes towards food, school supplies and, if you are leaving the family home, household expenses. However, it is entirely up to you to determine the amount of these expenses.

Once you have deducted your basic needs from your monthly income, you need to plan to live the following month with the remaining amount. This doesn't mean that you will go completely frugal, of course, but by understanding where the money is going, it will encourage you to look for alternative expenditures.

Suggestion Article: What's the Difference Between Investing and Saving?

2. Take advantage of student discounts

With your student ID, you can take advantage of special student discounts on digital platforms such as Spotify, Adobe, Storytel and Youtube Premium. All you need to do is verify your student email. Then you can start listening to music or learning computer software at affordable prices.

Moreover, student discounts are not limited to these apps. Shopping sites, online education packages, internet packages, unlimited talk deals and much more. Don't forget to activate your student mail for great deals!

3. Apply for Scholarships

A great way to ease the student burden is to get a scholarship. The biggest mistake most students make is not applying for a scholarship, thinking that they will not get one, or they stop looking for scholarships once they start university. The good news is that there are always scholarship options for you, no matter what grade you are in. The important thing is the platform on which you are looking for a scholarship.

In university life, your expenses do not always fall within your plans. Therefore, it is very important for you to explore a new source of income. Whether you get a repayable or non-repayable scholarship, both are opportunities for you to have a better educational life.

4. Look for Free Trainings

You don't always have to spend money to improve yourself. You can also do it in a cost-effective way. There are many free courses for university students in different categories. These can be face-to-face or online.

Especially within the scope of Covid-19 measures, online trainings are much more popular and widespread than before. Therefore, the first thing you should do as a student is to look for free ways to learn. You can also participate in events on campus, make new friends and start looking for the next events. Moreover, in this way, you will get rid of the anxiety of what I will do alone.

5. Avoid Borrowing or Borrow Less

Your monthly income may not always be enough to meet your needs. For this, you can ask people around you for a loan. However, the debt you borrow should be limited so that you can pay it back the following month. Because while you get used to spending, it is very important that you do not lose your debt repayment habits. This also applies to student loans.

Without paying the minimum amount, you cannot use the card the following month due to lack of limit. Therefore, regardless of the amount of the loan, you should not see it as your own money and create a plan for repayment.

6. Live within your means

University life often requires you to live below your means. A frugal life will prevent you from facing negative situations such as financial anxiety. But how can you do this?

We have a great suggestion for that. First think about your basic needs from your monthly income. Of the remaining amount, you can allocate 30% for personal needs, 10% for immediate payments and 10% for savings or debts. In this way, you will learn to spend in a planned manner without going beyond your economic situation.

7. Get a Part-Time Job

Working full-time during the summer or part-time during school is a great way to create a supplementary income for yourself. The important thing is not to work, but to save the money you earn while working for future use.

While traveling can be fun, it's only good if you have money to spend. For this, you can think of extracurricular time as a source of income. You don't always have to look for work far away, you can also work on campus. Don't forget to follow your university's announcements!

8. Set Long Term Goals

The key to achieving economic freedom is to build long-term financial strategies. First of all, remember that it's still early days for investing and this is a great opportunity for you. Acting wisely is the best way to secure your future.

Investing may require you to limit your spending. But that doesn't mean you shouldn't spend at all. You can enjoy the moment by managing your finances in a stress-free and carefree way. Therefore, setting aside a portion of your money for your future goals is the most important element that will enable you to build a solid future.

9. You Don't Have to Outsource Everything

The best way to take control of your cash flow is to realize that you don't need to buy everything and that you can actually do it yourself.

For example, instead of going to a café and eating out every day, you can do it yourself at home. Or when a new book comes out, instead of buying it right away, you can borrow it if a friend has it or try to exchange it for another book. This way you will learn different ways to save money and get into the habit of saving money instead of spending it.

Conclusion

Student life is often characterized by impulsive spending or impulse buying. The best way to overcome this is to keep track of cash flow and budgeting. In this article, we have discussed important tips to help you avoid financial worries during your university years. We wish you all a successful education life without financial problems!

Have you checked out the other blog posts of Üsküdar University Department of Health, Culture and Sports? Check them out now!