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When it comes to financial literacy in India, we've got lots of room for improvement. You see, we often get caught up in the excitement of earning money but forget to think about what comes next. We rarely grasp the significance of saving for emergencies, investing in our early years, and planning for retirement. And guess what happens? We end up making some not-so-great financial choices once we start earning our own dough.
According to a survey conducted by Standard & Poor’s, over 76% of Indian adults lack basic financial literacy and they don’t understand the most basic and key financial concepts.
Especially among college students, lots of folks haven't had a chance to learn about the basics of money matters. Being a student means you're part of the coolest gang on campus, where every day is an opportunity for new adventures and mind-blowing discoveries. But let's face it, those adventures can quickly drain your bank account if you're not careful. So, the culmination of endless expenses and lack of financial literacy can make it tricky for you to make smart choices about your finances and future plans in formative years. That's right, it's all about managing your precious moolah!
Personal Budgeting
One of the underrated skills that have become essential in recent times is personal budgeting, especially since the global pandemic and the recent economic challenges. With uncertain times, it has become even more critical to prioritize our financial well-being in college and be prepared for any unexpected circumstances. This is why, personal budgeting has emerged as your financial superhero!
Budgeting helps you track your college-life-related expenses, save for future goals, and be more mindful of your financial choices. It empowers you to take control of your finances, reduce stress, and work towards a secure and stable financial future. So listen fellow student warriors, we're on a mission to equip you with the ultimate survival guide to managing your finances like a boss!
Here’s Your Guide to Budgeting 101!
1. Write Down All your Monthly Expenses and Keep a Track
When you step into the world of independence, managing your expenses can feel like a bit of a mystery ride. You know what I mean? Living with your parents your whole life, you're not used to keeping track of every rupee you spend. But fear not, my friend! Here's a game plan for financial triumph: Once you settle into college life, grab a notebook and jot down every single penny you spend. It's like detective work for your finances! Talk it out with your parents or a trusted pal, and together, decide on a monthly budget that covers the essential bills. But hey, don't forget about those surprise expenses that might pop up unexpectedly! Set aside some moolah for those curveballs life throws at you. You never know what the month has in store, right? And here's a sneaky tip: If you have a month with no surprises, save up that extra cash for a rainy day. Trust me, in the future, you will thank yourself for being prepared.
Now that you and your parents have locked in that monthly budget, it's time for some magic. Get ready to embrace the power of the spreadsheet! Whip out your virtual calculator, like Excel, and start tracking those expenses like a pro. It's like playing a budgeting game, where you can keep tabs on every rupee you spend. Trust me, you'll be amazed at how it helps you make wiser choices with your money.
PRO TIP: Even if you've crunched all the numbers with laser precision, it's still important to allocate aside some extra money for the things that make your heart sing.
2. Hack Your Money Management
Living the college or hostel life can definitely put a dent in your wallet, but fear not! With some savvy strategies and a sprinkle of money management magic, you can conquer it all. Start by creating a wishlist of your needs and wants, and make it your savings mission. Embrace the art of saving by becoming a master of grocery shopping, using your local library to dive into a world of knowledge for cheap, sharing the joy (and the rent) by finding a roommate or hostel buddy, catching the ride with affordable passes for local transport, and embracing the wise ways of second-hand books or going digital for a pocket-friendly read.
Remember, a little planning goes a long way. Harness the magic of reminders and calendar apps to stay on top of your budgeting game. Peer pressure can be real, especially when it comes to epic nights out or satisfying your Nando's cravings. So, mark those special occasions in your calendar and plan ahead for those extra splurges. Budgeting can be fun, trust us!
3. Cut Down Costs and Adapt New Lifestyle Choices
If your total expenses shocked you, it might be time for a lifestyle upgrade! Trimming down your spending doesn't have to be a rigid and tiresome process. Who says being frugal can't be a blast? It's all about finding the sweet spot between saving and enjoying life. For eg, when it comes to decorating your room, you can unleash your creativity and craft your own festive decorations instead of splurging at the store. Don’t be an impulsive buyer, avoid buying one-time use things instead invest in reusables, re-audit your expenses frequently, and most importantly, appreciate what you have!
Just remember, budgeting is an ongoing journey. As your lifestyle evolves, your budgeting strategy may need a little refresh. Whether it's embracing a modest and minimalistic lifestyle or finding clever ways to boost your income, don't hesitate to adapt your plan.
4. Keep an Eye Out for Student Discounts
Unlock the power of student discounts with a nifty student discount card. There are so many incredible opportunities and discounts out there just waiting for you to take advantage of. It's all about developing a clever day-to-day strategy. For example, have you checked out the awesome meal plans available on campus? Trust me, they can save you a ton of money on food without compromising on taste. And when it comes to entertainment, don't forget to keep an eye out for student discounts at the theater or cinema. You'll be amazed at how easy it is to snag discounted prices just by flashing your student ID! And when it comes to getting around town, forget about pricey taxis or rideshares. Hop on that student-discounted public transportation and watch your savings soar. Sure, it might take a little longer to reach your destination, but think of all the extra cash in your pocket! Also, keep your eyes peeled for all the amazing free activities organized by student communities and clubs.
IMAGE: ISIC’s 1,50,000+ student discounts creative
Oh, and here's a hot tip: You can easily grab 1,50,000+ student discounts with an ISIC card!
5. Make Money to Save Money
We totally get that not everyone has the luxury of working while in university. But hey, guess what? There are more opportunities now than ever before! You can easily get started by working directly for your university. Believe it or not, most universities have a variety of roles available that focus on administration or assisting residence staff. Freelancing is also a popular choice among students looking to make some extra dough. It not only helps you gain practical experience that'll come in handy when you graduate but also allows you to earn money on a schedule that works for you. Another option worth considering is applying for a paid internship. Many companies around the world offer internship programs for students. While it may not offer as much flexibility as freelancing, you can often arrange your work schedule around your classes.
So, it must be evident now that mastering the art of money management as a student might not be as challenging as it initially appears. Let’s start embracing the art of personal budgeting and conquer your finances today! Follow ISIC India for more such helpful tips because we are Your Student Lifesaver.
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