Growing up, our parents always reminded us about the importance of appreciating what we have and understanding how money comes and goes. As kids, everything is paid for, but we learn as we get older, we learned that money is not free. Not only do we need to earn it, but we also need to establish ways to save it and spend it more wisely.
Let's face it, College is expensive, and it doesn't help that tuition appears to keep rising each year. We can't do too muh about that, but we can become better at saving money by adopting some financial planning and management skills. Here are a few tips for how to manage money more wisely:
-Make a routine of paying bills on time. If you have a job, work as many hours as you can to earn more money. If you owe money, create plans to repay debt and stick to them as if you are paying bills.
-Make your money last. Create some goals, and limits in terms of how much you can spend per week. Don't allow yourself to be caught up in spending more money by going out at a restaurant or buying something at the mall if you know that you will be spending more money than you planned to.
-Sometimes you may need to buy something, or go out and spend money. You're not just a robot going to school. So determine what you "want" and what may be more of a "need" for yourself. Prioritizing what things you want to spend your money, instead of spending it all around. People who make many impulsive purchases find it difficult saving money or even maintaining enough money to pay bills. Sometimes waiting and determining if you really need something will help you make better purchasing decisions.
-Identify what you won't by. You may want these items but by identifying them early will keep you from spending money on them.
Budgeting is defined as the process of planning expenditures based on available money; basically a plan for how you will spend the money you have. Understanding how to deal with bills and spending wisely will go a long way.
To build a budget, you'll need to identify, how much money is coming and where its going. You can organize your budget like this:
Expenses Per Year Per Month
Gas $2,040 $170
Food $360 $30
Clothes $250 -
Remember, be real with your budget. Don't overstate what you will have. Also, pay attention to all the small purchases you make. They add up and cutting some coffee purchases here or some DVD's there could go a long way. We'll leave you with a insightful quote about spending:
"I have the greatest of all riches: that of not desiring them"
-Eleanora Duse
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