Joanna Orban
Copy Editor
One of the hardest things in college (besides learning how to cook) is learning how to manage money successfully. Between student loans and living paycheck to paycheck, it can be difficult to know how to manage money. If you’re like me, your high school probably didn’t teach you anything about budgeting or personal finance and you’ve been left to figure it out on your own as the bills pile up and the university is making you pay extra for online classes. I definitely don’t know everything about money, but here are five tips that have helped me along the way.
Create a Budget
This may seem hard, but I promise once you sit down and scroll through your bank statement and realize how much money you spent on Starbucks, you will want to create a budget. I know it may seem hard, but creating a budget is one of the easiest things you can do to get a handle on your finances. First, think of your monthly expenses. This can be everything from student loan payments to your phone bill or rent. Those should be taken out of your paycheck first. After that, you should set aside money for groceries. I prefer to go grocery shopping weekly and set a budget for each week. If you’re the type of person who goes bi-weekly, make sure you set aside enough money in advance. Now, let’s talk about cars, don’t forget to subtract gas money from your weekly budget. If you, like me, find that your car is guzzling gas faster than you can sip your pumpkin spice latte, try some other options. Pocatello has a public transportation system. Or, maybe you could try carpooling with a friend? Some other important things to keep in mind when you are creating your budget include just-in-case money. What if your car needs fixing? Or you have to make an emergency trip home? Have some money on hand just in case. Also, in case the world ends and we don’t have access to our bank accounts, paper money might come in handy. Finally, set aside your fun money. For me, this money is what I use if I want a new book to read or if I go and do something fun with friends.
Here’s how I’m trying to break down my budget:
20% – Savings
10% – Fun money
60% – Monthly expenses
10% – Just in case
Manage your Subscription Services
This is a big one. As I sit writing this article, I currently pay for Amazon Prime, Netflix, Hulu and Spotify Premium. I mean sure, Hulu and Spotify Premium are a package deal, but still, I really don’t need all of those. Keep in mind what works for you. If you absolutely cannot live without Netflix, do what I do and split the cost with a friend. My family and I also share an Amazon Prime account, which is a necessity in a town like Pocatello, with such limited shopping options. In the meantime, give your budget a break and do without one of the many, many subscription services sucking the life out of your checking account. I suggest doing this on a month-to-month basis and trying out which ones work for you and which ones you don’t need. Don’t forget to take it out of your budget!
Don’t Eat Out
Don’t kill me. Take a deep breath, and you’ll realize I’m right. Eating out costs so much money. Too much money. Let’s say you eat out every day for dinner and your dinner costs at least $10 a day. Before you know it, you’ve spent seventy dollars that very easily could have been spent on gas or bills. I know this is hard, especially if you don’t know how to cook, but cooking is much nicer on your newly formed budget than eating out. When you’re starting to cook remember the staples: protein, carbs, fruits and vegetables. Keep this in mind after you burn your dinner for the second time: it’s still cheaper than eating out. I’m not saying that you can never eat out again, but try and limit how often you do and try to stay within your budget! Eating out can also include the daily coffee you get at Einstein’s as you frantically try and login to your Zoom class on time. I mean, do you need that bagel? No, no you don’t.
Choose the Cheaper Option
Visit the dollar store. Seriously. They have cheap, nonperishable snacks, holiday decorations and hygiene products. Honestly, you can save so much money by just choosing the cheaper options. You really don’t need those Target decorations when you can make your own or find something equally cute at the dollar store? Do you really need that HydroFlask, when other water bottles work just as well? These are the types of questions that will save you some money and save your wallet some tears. You’re in college, the cheaper option (at least for now) is the better option. You don’t have to sacrifice everything though. I cannot live without a certain type of shampoo and conditioner (other people with naturally curly hair will understand) and so I take that out of my budget. The main lesson to learn here is to save money when you can, so you can buy the more expensive shampoo when you want to.
Start Building up Your Savings Account
When I went away to school, my parents advised me never to dip into the money in my savings account unless I absolutely had to. This was a hard lesson to learn, but ultimately it is nice to have that emergency money, in case something drastic does happen. When you sit down to work out your monthly budget, don’t forget to place a certain amount of money in your savings account. I usually work by percentages, but do whatever works best for you. You’ll thank yourself when you graduate.
Finally, it’s important to remember this. Don’t be too hard on yourself if you splurge now and again. I guarantee no one is perfect at keeping a budget, I’m certainly not. But hey, if you need any inspiration for why you should try and be better with your money, just watch “Confessions of a Shopaholic”. You definitely don’t want a Derek Smeath chasing you around.
