Budgeting tips for college students
Introduction
When I was in college I used to go walking many times due to money issues. One day I was thinking about how some people of my age earn good money and manage their expenses. How can I make money at this age? One day I decided to search about this and find the way. Finally, after time spent on interest, i got my reward.
7 budgeting tips that help me to earn as well as save money while studying. Believe me guys this is my 6 year old story which I shared with you. so if you are a working employee or student who want to earn a side income or save more money then this blog is for you. This tip provides easy budgeting steps to spend wisely and enjoy college life.
Tip no.1: know your expenses
Every student or person “Has their own expenditures. You have to cut it out by properly making decisions I’m not telling you to stop all expenses but look there is a huge difference between ” what we need and what we want ” so think carefully and erase unwanted expenses. For ex. If you spend more money on junk food with friends, consider reducing your spending amount or eating those foods every other day, such as one day on and one day off. also, try to bring lunch box Now you are thinking by doing this how much money i can save?
so here, is the calculations= suppose your mother gave you 50* for lunch and 30* for traveling ( prices may be more or less number is a just example ) so total=80* as i told you earlier if you bring lunch then 50* you can save or if can go to college by walk then try to go atleast one time. by doing this you easily save between 40* to 70* per day then suppose if you saved 50* per day then multiply by 30= 50*30= 1500* you can save it.
Tip no.2 : Invest your savings
before we discussed how we can cut unwanted expenses and save money. now the money that you saved you can invest in several platforms for ex.
1) SIP ( systematic investment planning )
2) you can buy shares of different company
3) also you can invest in gold digital coins,ETF or do fixed deposits
plz.. note if you can monthly save upto 1500* then save atleast upto 6 month ( 1500*6=9000* )
you can invest this accumulated money in deposits or mutual funds..etc.
Remember guys that ” patience is the key towards success :
Tip no.3 :Create a Simple Budget
A budget helps you control your spending and save money. A simple way to budget is the 50/30/20 rule:
50% for Needs – Rent, food, tuition, transportation
30% for Wants – Shopping, entertainment, eating out
20% for Savings/Debt – Emergency fund, savings, loan payments
this is most easy way to save and utilize money with proper management. However you can definitely increase or decrease number of percentage %.
Tip no.4 : ( built Up an Emergency Fund )
Guys know one can predict the future, what going in the world tomorrow know one have idea about that, this is why we have to save money for unnatural happening events like accidents, medical bills of parents or what happen if our country get locked again.so we have to built a emergency fund so that we can survive easily.
we discussed that saving money from unwanted things is a good idea. due to this, we can invest those money in liquid funds or long-term investments.
now what is the difference between long-term fund and liquid funds? I’ll show you through table so you can understand easily.
| Feature | Liquid Funds | Long-Term Funds |
|---|---|---|
| Purpose | Best for short-term investments, typically ranging from a few days to months. Used to park surplus cash temporarily. | Ideal for long-term wealth creation with an investment horizon of 3+ years. Suitable for achieving major financial goals like retirement or buying a house. |
| Risk Level | Low risk since these funds invest in short-term, high-quality debt securities. Market fluctuations have minimal impact. | Moderate to high risk, as they invest in equities or long-term debt instruments, making them more volatile. |
| Expected Returns | 4-6% per annum, making them more stable but with lower growth potential. | 10-15% per annum, but returns are subject to market risks and may fluctuate over time. |
| Liquidity | Highly liquid—most liquid funds allow withdrawals within 24 hours without penalty. | Lower liquidity—some funds may have a lock-in period (e.g., ELSS funds have a 3-year lock-in). Even without lock-ins, withdrawing early might not be ideal due to market fluctuations. |
| Taxation | Returns are taxed as Short-Term Capital Gains (STCG) if redeemed within 3 years. Tax rates depend on the investor’s income slab. | Returns are taxed based on Long-Term Capital Gains (LTCG) rules. If held for more than a year, gains above ₹1 lakh are taxed at 10%. |
| Investment Type | Invests in short-term debt instruments, such as Treasury bills, certificates of deposit, and commercial papers. | Invests in equity, long-term debt instruments, or a mix of both, depending on the fund type. |
| Best For | Ideal for keeping emergency funds or temporary surplus money safe while earning better returns than a savings account. | Best for long-term financial goals like retirement planning, buying a home, or wealth accumulation over time. |
Tip no.5 ( use Credit Cards in a right direction)
I am not recommend anyone to own a credit card due to their rate of interest but nowadays mostly people are using it so you can follow this tips below. Credit cards are helpful, but if not used correctly, they can lead to debt. Follow these rules:
1)Make sure to pay the full amount on time each month to avoid any interest charges.
2)Make sure to spend no more than 30% of your credit limit.
3)Choose a student-friendly credit card with cashback and no annual fees
4)Using a credit card responsibly helps build your credit score, which will be useful in the future.
Tip no.6 ( Find Route to Earn Extra Money )
so, if you learned how to save money then it’s time to earn money through different ways. even today I’m using this method to earn money as a side income. Obsessively guys you can also earn money if I can you just have to work hard consistently during the initial days.
Since many students struggle with limited funds, having an extra source of income can help cover expenses and reduce financial stress.
Here are some ways to earn extra money:
1)Part-time jobs – Working in cafes, restaurants, or on-campus jobs can provide a steady income.
2)Freelancing – Skills like writing, graphic design, coding, or video editing can help students earn online. Platforms like Fiverr and Upwork offer opportunities.
3)Tutoring – If you’re good at a subject, you can help other students and charge for your services.
4)Selling items – Selling second-hand clothes, books, or gadgets online (via Facebook Marketplace, eBay, or local selling groups) can bring in extra cash.
5)Online surveys & gigs – Some websites pay for taking surveys or completing small tasks.
6) Make an online video on youtube with a specific niche.
guys search the above topic on the internet if are interested in any of them.
Tip no.7 ( Review and Adjust Your Budget Regularly )
Your financial situation can change, so it’s important to review and adjust your budget each month. If you notice that you are spending too much in one category, consider reducing unnecessary expenses. Conversely, if your income increases, make sure to boost your savings as well.
Conclusion
Budgeting doesn’t have to be stressful. By tracking your spending, making smart choices, and looking for ways to save, you can enjoy college life without money worries. Follow these budgeting tips, and you’ll be on your way to financial success!
Looking for more money-saving tips? Stay tuned for more financial guides on ProperlyGrow!
