How can I manage my money wisely as a student? Not having enough money is more reason why you should learn money management especially if you have left the comfort of your parents to pursue a course at school.
Anyone in school can make the university’s four walls either a blessing or a curse. It boils down to how relevant and useful your principles are to journey down the way to success. This includes building a healthy financial lifestyle that sets you ready for life after graduation.
Unfortunately, students leave school before they realize they could have done better with their financial decisions which begin with money management.
You can learn to stay financially buoyant throughout your stay in school if you will pay attention to these money management tips I am about to share with you.
What is Money Management?
Money management is the practice of organizing and investing your money wisely.
While there are many areas of money management, the idea is to optimize money inflow and outflow.
Benefits of Money Management
Several benefits come with money management practices. They are:
It gives you control over your finances.
Enhance decision-making and actions for work and other commitments.
There is a higher chance of increasing your savings.
You can begin to work on your financial goals.
Investment opportunities will not be missed.
Ability to stay away from debt and offset bad debts.
Teach others to take control of their finance as well
10 Money Management Tips To Stay Financially Buoyant in School
1. Create a Budget
Create a budget and live on it. A budget involves allocating money for every item- food, transport, handouts, and other essentials.
Money flies. Hence your budget, if well managed will take you through the period before another income comes in. The essence of a budget is to ensure you maximize your income to prevent extravagant spending or impulse buying.
As money comes, you allocate it for an item on your budget list. This keeps you in check for your home allowance and other income inflows. Thereby, maintaining a good money management record.
There are budget apps that can easily help you organize your spending. This is if you don’t want to use a regular pen and paper.
2. Open and Maintain a Saving Account
A savings account is to keep a portion of the money you receive for plans. It is not your regular bank account for everything.
It should be specific or better still automate your savings with a savings app like cowry wise. Open a savings account with cowry wise.
Money is rarely enough. Your needs increase with the more money you have. So be faithful to allocate a certain percentage for savings whenever money comes in.
Once you receive your allowance or other income, keep back the stipulated savings percentage before settling for use
You will be shocked at your saving record if you can maintain as little as 2% of your income.
Recommended: 8 Hot Cake Budgeting Apps
3. Invest Your Savings
We just discussed savings but I need to make something clear here. As a student, one money management tip you need is to be very disciplined to stay off your savings. Why? Needs arise very often- you will be tempted to use your savings.
Therefore, have a mindset your savings is not your money but investment capital. Savings is for Investment, not Mere Expenses. If not, why do we have to save in the first place? Stay off your savings. Don’t say I didn’t warn you.
There are little investments you can begin to purchase with the savings you made. Getting a laptop for instance to begin a side business is an investment on your part.
4. Have Plans for Emergencies
No one prays for bad events but it’s advisable to plan for them anyways. Planning for unforeseen occasions is another money management practice.
You don’t need to run helter-skelter when a little shaking arises at school or home.
Instead, you deploy your emergency fund to take care of the issue. If it is not sufficient to fix what’s at hand, you get something started at least.
5. Track Your Expenses
Monitor how money leaves your wallet. What are the things you often spend on? Was there any time you spent money wisely? Answers to these questions will help monitor your spending.
Being up to date with your expense profile, keep you on alert for cases of bank fraud or domestic theft.
Meanwhile, tracking your expenses may not be very easy but it is worth your money management practice not only for now but also for the future.
6. Generate a New Stream of Income
Always think about investment. Investing doesn’t mean spending on Ponzi schemes. Instead, discover new ways you can earn money alongside your studies.
Involving a part-time job may work for you or you can start a side hustle within your control. Start business ideas like selling on-demand items for other students, barbing, hair making and attachment sales, POS, Shawarma spot pedicures/manicures, etc.
There are also online business ideas you can opt-in also to build your financial future and improve your money management timetable.
7. Live On Campus
Avoid renting a hostel outside the campus to help you stay within your money management confines.
There is little or no additional cost for utilities like water, electricity, and waste when you live on campus accommodation.
Also, transportation costs may not be necessary since you can walk to school and back.
8. Share Resources With Roommates
Except for your personal belongings. You can afford to share resources with room or dormitory mates.
There is no harm in putting resources together to buy a piece of furniture, laundry materials, and the like. Purchasing these items yourself only makes it easy for your colleagues to request them and you can’t say no. Why not share to get them?
Recommended: 8 Reasons To Or Not To Have A Roommate In School
9. Buy At Discount Prices
Always save back on discount purchases for your needs. Being a student, your money management culture should also include going on discounted prices as often as possible.
There are various merchants ready to reduce the prices of their wares for students. Take this opportunity to ask for a discount during your shopping.
Also, patronize stores that sell at wholesale prices. These little savings here and there can squeeze in more cash for your money management system. You will not always be a student at school, so enjoy the benefits you can get while it lasts.
10. Stay Within Your Means
The top area you spend money on is food expenses. Shouldn’t your budget cover food expenses? It should be if you are careful enough to list twice or thrice meal plans per day but it is easier to budget for the food materials and groceries, not the end product itself.
This brings us to stay within your means for your daily consumption and other expenses. Your friends eating out is not your business. When it is necessary and affordable for you, food outings can come in handy. But avoid competition with anyone whether for food, fashion, or anything else.
Staying within your means could be your best money management technique so far. The reason is, everything boils down to what you get as income.
Feel free to use the comment box to share your money management experience with us.