I am a freshman at a state university and therefore still new to the entire university system.
I don’t have a job or a business, although I am a talented writer (who doesn’t currently make any money from it).
I did a money test and discovered that I am a spontaneous spender. I don’t save money and if I do, I always withdraw it after a while.
My pocket money is gone before the end of the month. Please give me tips on how to “manage” my funds and plan a budget because I don’t have one. My expenses revolve around data, food and transportation. Thanks. – Temi, 17
Hi Temi, Managing money as a student can be difficult, but here are a few suggestions to help you get on the right track.
First, track your expenses. Write down everything you spend on data, groceries, transportation, and other monthly expenses. This will help you see where your money is going. Once you’ve tracked your expenses and income, it’s easier to see why you’re unable to save. If I’m guessing correctly, the amount you receive as pocket money isn’t enough to cover your expenses, which is why you always have to dip into your savings. The solutions are to either cut your expenses or increase your income. You’re a talented writer – is it possible to monetize your talent by doing freelance writing? This can provide you with a new source of income to supplement your living expenses and savings. Also, check to see if you’re overspending in any of the categories you track, and cut them if necessary.
Next, I would like to encourage you to set a budget. Divide your monthly allowance into categories that make sense for your situation. For example:
Data: 20%
Food: 40%
Transportation: 20%
Other: 10%
Savings: 10%
I think you should get into the habit of making saving a priority.
Consider opening a separate, harder-to-access savings account so you don’t have to dip into your savings. Also, consider automating the transfer from your main account to your savings account so you’re forced to go without the money. Setting goals for what you want to save for will also make saving easier.
All the best!
Xoxo,
Rene
