By Puteri Balkish
Do you have refined tastes towards food with a ‘pasar malam’ or ‘mamak’ budget? Or an image to care for – to have the latest trends in your wardrobe, to keep up with your peers but without sufficient means? Fret not, the majority of university students are living on a tight budget. Omit the budget and they would find themselves stuck in a sea of debt.
Keeping yourself under a tight budget is not easy, but you can always be wise in handling your finances. One has to be aware of his or her cashflow and expenses and to spend it in the right way. Learning to live within one’s means is essential to ensure sufficient funds to live on, instead of going beyond one’s budget.
Here are ways to manage your finances better.
First things first, is making a budget. This particular step is crucial before you sort out other things. You should begin by listing down where you get your money from, be it a part-time job, allowances from your parents, savings or loans. Then, write down an estimation of your expenses for the coming month. Things like stationery, fees, food and beverage expenses, toiletries, laundry and petrol should be included.
Next, to segregate between one’s wants and needs. If you are a foodie, ask yourself if dining at a fancy restaurant every week is convenient for your budget. If you are a shopaholic, ask yourself if you really need that top in your wardrobe or if you really need more makeup in your collection. The key is to restrain from spending more on wants and retaining your budget so that there is enough for your needs. As the semester passes, one would hold a grasp of their expenses and get used to handling their budget. Carrying a debit card and limited cash would be a smarter way to keep track of one’s expenses because one would be more aware of the cash spent before they head to the ATM machine.
Besides, if your parents are not millionaires or are relatively rich, do some research on financial aid and loans. After graduating, ex-students normally have a problem with settling their loans because they have a hard time managing their wages after getting a job. Students should plan out the size of their outstanding debt and come out with a plan to pay for it. Most graduates make the mistake of being too excited to move out without thinking of the expenses needed. If it helps you in budgeting, you should just live with your parents until you have full control of your financial state.
Last but not least, instead of buying new textbooks, source out for used ones that are in good condition. One thick textbook may cost you hundreds, and not everyone has that much money to pay for just one subject. Ask around for the books you need, you might even be able to get the books for free (if you are lucky) or pay just a fraction of the price.
As Dave Ramsey said, “Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.”***