College life is exciting and challenging , you are moving away from mother and father living on your own and taking your own decisions. So it is right time to learn about financial planning,budgeting and spending strategies.You need to prepare yourself for your financial planning before you get your first job. By adopting a few following steps you can transform your life into financial security.
1)Create a monthly budget
Create your first monthly budgeting by listing out your expenses such as college tuition fee,books and supplies etc. and income like scholarship, contributions from parents.When you list out your expenses it is necessary to record all your expenses for successful budgeting process. You will be convinced the importance of all expenses recording when you have been continuing budgeting for few months. After preparing your first budget you will understand how much money leftover in your budget or your expenses exceeding your income,reminding it is urgent to increase your source of income for peaceful college life.
2)Track your expenses
It is easy to wonder about where your money goes, but if you prepare monthly budgeting and tracking your expenses it is easy to find out where your money actually goes ,you dont need to wonder about.Budget shows where your money goes.Track your spending to see what you spending for and what is your spending habits.
3)Find and apply what is your wants and needs
You need to find out what is your desire and necessity.When you tracking your expenses you will find out what you spending and check it is purchase for desire or necessity.You think just a moment before every purchase it is necessary or you purchased it for your desire.For successful budgeting sometimes you need to make compromises for your desire.If you follow the principle of desire vs necessity gradually your monthly budget will come under your control and you don’t need to worry about deficiency of income,always be money left over in your budget.
4)Stick to your budget
Real challenge is not making a budget, but sticking to a budget.Your first six month budgeting is an experiment with your spending habit, you need to watch it patiently to stick to your budget.Some times you will be surprised when your spending pattern goes crazy.As a result you will exercise what is necessary or not before you purchase anything.As your college life progresses, you will start to try stick to your budget.
5)Save for Emergency
The unexpected expense is part of a life.If you stick to your budget ,you will find out lot of unwanted expenses through your spending habit by your desire. By reducing unwanted expenses you will get the opportunity to find the money for emergency savings.Emergency savings are now part of the life.It is not hard to find out money for emergency, just follow the monthly budget-track your expenses and find out unwanted expenses.
6)Smart shopping for text books
One of the major college expense is cost of text books.Follow the purchase mode of online purchase for discounted text books or purchase texts from used books stores.To find out higher discount from online purchase you need to invest some time for browsing various e-commerce websites.
7)Learn to live within your means
‘Live within your means’ means your monthly spending is less than or equal to the money you bring in each month. Your main priority is make sure you are meeting your financial obligations without any hurdles and second priority is spending.Just make a precaution of eating out multiple times a week and other expenses to live within your means.