The opinions expressed in this article are the writer’s own and do not reflect the views of Her Campus.
Keeping track of personal finances becomes much more taxing than initially thought. Balancing the onus of paying living expenses amidst trying to grasp a handle on all the other things college life throws at you can prove to be complicated.
Here are five effective budgeting strategies I adopted.
- Recording Personal Finances
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Regularly keeping track of my expenditures has allowed me to get a realistic view of where my money is going and where I prefer it to go. Establishing a budget has helped me appropriately account for all the costs I must pay moving forward.
- Creating A Savings Account
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An efficient approach I use to keep my money safe is through a savings account. With a savings account, I can gain liquid assets: cash on hand or cash on bank deposit that can quickly convert into cash.
Opening a savings account has offered me the opportunity to not only save money but invest as well. I can accumulate interest by creating a savings account with my local bank. Though my interest rates will initially be relatively low, a boost in interest rates will occur after several years of adding more money into my savings account.
- Generating a Source of Income
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Often, creating a source of income can be challenging for college students, especially first-year students, due to their busy academic and club schedules. Rather than paying jobs, my source of income stems from grants and scholarships.
The Free Application for Federal Student Aid ( FAFSA) is a form completed by future and current college students to determine whether or not a student is eligible for financial aid provided by the U.S. Department of Education. Through FAFSA, I have been provided with financial aid to help decrease the financial burden of attending college.
- Taking Advantage of Scholarships
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Many students find enrolling full-time in university challenging due to escalating education expenses, resulting in students dropping out of college. Scholarships have allowed me to stay in college while reducing the financial burden on my parents and myself.
Many people are under the assumption that scholarship season is limited to October through December. However, donors offer scholarships throughout the year. Websites such as VCCF, College Life Made Easy, Bold, and Niche are places I frequent throughout the year for suitable scholarships.
- Applying the 50/30/20 Rule
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The 50/30/20 rule is a budgeting strategy created by U.S. senator Elizabeth Warren that facilitates proper management of your money efficiently and substantially. The rule of thumb is to allocate 50% of your money for needs, 30% for wants, and 20% for savings.
I have accustomed myself to self-control and sensible budgeting strategies by adhering to the 50/30/20 rule. The budgeting approach pushes me to set aside 20% of my income for savings and develop the ability to control my spending on wants.
How do you budget in college? Let us know @HerCampusSJSU.