So you get to college and think you have enough money. You go about the semester, and BOOM, no money! Now you aren’t even halfway through the semester, and you’re wondering where all your money went. Does this sound like you? I can tell you why. Here are personal finance hacks for a college student from a college student.
I would always find myself flat broke by mid-month, not even mid-semester. I’d just sit and ask myself where all my money went until I got tired and decided to track my spending. I started to note every purchase to see where all my money went, and what I discovered was truly eye-opening.
It turns out my budgeting sucked. It’s not that I didn’t have a budget; it just wasn’t working for me. I blamed everything except my bad habits. So here are a few mistakes I noticed in my finances and practical ways I conquered them:
Common Financial Mistakes and Solutions
1. Not having a budget that worked:
I had a budget, but it just didn’t work for me. I barely followed it because it was so ineffective, and this cost my finances greatly.
2. Not tracking where my money was going:
In my opinion, this is the start of every financial pitfall. How can you account for every coin when you can’t even tell where they are going?
3. Prioritizing wants over needs:
I’m a soft girl through and through, and if you’re female, you know that maintenance can be pretty expensive. With sensitive skin, not all products on the market worked for me, so I had to invest in some pricey ones.
4. No emergency fund:
An emergency fund is like your financial umbrella, and when you’re in college, unexpected expenses pop up. Without an emergency fund, you dig into unplanned funds.
5. Overall lack of planning:
The saying “failing to plan is planning to fail” is real. My money was just open for anything, so it was easy for it to quickly disappear.
Steps I Took to Fix My Financial Situation
1. Created a Sustainable Budget:
I started looking up different types of budgets to figure out which method would work for me. This website does a great job of explaining some of the common ones. I tested out zero-based budgeting and the envelope/cash stuffing method. What worked best for me was cash stuffing because I found it harder to spend cash as I was addicted to online shopping. I paired it with percentage-based budgeting, and it did wonders for me. When creating a budget, tailor it to your unique income. You can start by just writing up a budget in a notebook or in your notes app.
Free Budgeting Printables:
To help you get started with your budget, I’ve created some free budgeting printables. These printables include a budgeting worksheet, an expense tracker, and a no-spend challenge tracker. Sign up below to get instant access:
2. Created an Emergency Fund:
Every time I made my budget, a good amount of money went to my emergency fund. Clarifying the difference between savings and an emergency fund is crucial. An emergency fund is for financial emergencies (and no, paying for streaming services or booking a facial appointment is not an emergency). Savings are for whatever purpose you choose, like saving for a birthday or a treat. Just add a purpose to your savings; otherwise, you’ll spend it on anything.
3. Tracked My Coins:
PLEASE. If there’s anything you take from this article, let it be this. Tracking your expenses will make you realize how unnecessary some purchases are. You can use an app like Meow Money Manager, which is effective, simple, and cute. It’s available on the Play Store if you want to check it out.
4. Lived Below My Means:
Like I said, I’m a soft girl through and through. But now, I’m a soft girl on a budget, and I’ve never been happier. I started to find more affordable products that could work for my skin and hair. I’m also learning to do some beauty treatments from home to save extra cash. Of course, money is still spent when necessary, but now it’s budgeted for.
5. Realized There Is Food at Home:
Junk food and eating out are expensive and harmful to your health. Buying fresh food and cooking might seem more expensive and time-consuming at first, but it’s cheaper and healthier in the long run.
Related Posts:
- 10 Quick and Budget-Friendly Snacks You Can Make In Your Dorm Room
- 7 Quick and Easy College-Friendly High Protein Breakfast Recipes
Money management doesn’t have to be a chore. You can make it enjoyable. Set a peaceful scene, play some music, and include your wants in your budget.
There’s a misconception that budgeting means cutting out everything you want. That’s not true. You can still add everything you want; you just have to budget for it, so you’re not left broke.
That’s it from me for now. I’ll break down and discuss more about creating a sustainable budget and emergency fund in college in upcoming posts. But in the meantime, let’s work on guarding our coins!
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