How to Give Up Being A Broke College Student and Master Your Finances Like A Pro
Managing your personal finances is a crucial skill they don’t teach you in school. A lot of college students are in the same boat — we’re pretty much clueless when it comes to money. Where do you start when you’ll have heaps of student debt to pay off? Here are some things you can do to stay on top of your finances and give up being a broke college student.
1. Stop Buying Things You Don’t Need
We are constantly surrounded by ads that try and sell us products we don’t need. That’s how businesses make money. So don’t be fooled. Always think twice about what you’re buying. But, if you REALLY want that product, try going two weeks without it and see if it’s essential to your life. It will be most likely that it isn’t, which means you can live without it. Another great tip to saving money is to avoid shopping malls. To cut out a habit, you must get rid of any kind of temptation. So instead of adding to the clutter and spending an extra $15, ask yourself whether you really need that avocado slicer.
2. Keep Track of Your Expenses
Budgeting is a great skill to have when it comes to managing personal finances. I highly recommend using the Spendee App. By keeping track of what you spend on daily, you can see what things you can eliminate from your budget to reduce debt.
3. Get A Side Job
Taking on a part-time job and earning some extra cash will help ease off financial stress. There is so much part-time work available for college students. Advertise yourself, ask around and you’ll find one! Make sure that your side job works around your college schedule. There are also many online teaching websites that look for English tutors like Italki where you can set up your own lessons. Having a source of income will not only help you with your daily expenses, but it will save you more money in the long run.
4. Learn To Invest
There is plenty of advice given out for FREE by financial experts like Warren Buffet and Farnoosh Torabi. You can teach yourself how to invest by reading books, such as investing in stocks as well as in real estate. Invested is a great book by Danielle Town that explains how investing principles work. Instead of having your money sit in your bank account, get that money compounding and growing so you can make a passive income and reduce even more debt.
5. Cook Your Own Meals
One the worst money habits is eating out everyday. Not only is it extremely costly to do that every week, it’s most likely to be unhealthy too. Research shows that it is healthier to cook at home with fresh ingredients because there won’t be chemicals like MSG. There are also hundreds of healthy, low-budget recipes online that teach you how to cook delicious meals which you can bring to campus.
6. Cut Down on Caffeinated Drinks
I hate to say it, but getting a latte everyday isn’t at all smart. If a coffee costs around $3 or more, it will cost you around $84 a month. It all adds up! Taking a thermo and making a coffee at home before going to class is ideal.
7. Get a Capsule Wardrobe
We only use 35% of our wardrobe so I recommend keeping it minimal when it comes to clothing. The clothes that we buy seasonally go out of fashion quickly, because usually what is trending at the time will be replaced by another trend. Stick to timeless pieces that match with most of your clothing. Basics are the way to go!
8. Give Up Credit Cards
Avoid using credit cards because you don’t want to be spending money you don’t have. If you don’t pay the debt back in time, you will get penalized for your bad credit score. Stick to debit cards to make sure you don’t go into debt.
9. Host Drinks at Home
Another great money-saving tip is to host dinner and drinks at home instead of going out and blowing even more cash. It’s expensive to be going out weekly, so I suggest inviting some friends over, sharing nachos and guac and split a bottle of wine. It’s a lot more fun, you get more privacy and you can make a lot more noise!
These are some of my best money saving tips. It will be hard at first keeping these money habits up, but over time you’ll see that they will make a HUGE difference. Don’t forget to set your goals every month for your finances. Identify where you want to eliminate spending and how you will pay off that student debt. And as soon as you know it, you’ll no longer be a broke college student.
Good luck!
This piece was written by Chloe Mason. She is an Euroasian Third Culture Kid on the move. Her expat lifestyle means that she has traveled across the 4 continents and lived in 5 countries. She writes about personal development on her blog chloelingmason.com where she gives advice for every clueless 20-Something. Her favorite topics range from career, relationships, finance, style to health and wellness.
