Campus is packed with new and returning students, which means that college is in full swing. Classes are in session, professors are already challenging students and the Quad is buzzing with fall schedules; if the stress of school hasn't hit yet, it probably will pretty soon. Getting a higher education is no easy feat, especially when you add money to the equation. I think college is an invaluable experience -- socially, professionally and intellectually.
One of the most stressful things about college is the money factor: daily spending, monthly living expenses, and those very intimidating student loans. Do you know what you're going to do with your limited funds this semester? If not, here are a few tips to help you make it to Christmas (or summer) without investing a lot of stress into your finances.
Get a plan
Let's just remove the word "budget" from our vocabulary. "Budgets" indicate restriction. You can't have something. Don't view it that way. Your financial plan eliminates the stress of the "what if's" in your life. Set a daily or weekly limit for your spending and stick to it. Spend half an hour each week devoted to figuring out your spending. If you have to, write down where you spend the most of money and where the least of it goes. Then, decide what you want to invest your funds into and what you can do without. I'm not expecting you to stick with a strict financial plan; you are, after all, in college. I want you to know exactly where you are spending your money. Once you figure that out, you'll know your plan; where to cut and where to invest will be much easier to figure out. Set limits
Sometimes, you've just got say no. If your friends want to do something that will have you strapped financially for the next two weeks, say no. If you're eating out max is five times per week and you reach that by Thursday, stop going out to eat until Monday. Set an intention to spend a certain amount of money each day, week or month an honor it. Once you've hit your max, stop spending. One of the best things about college is that you can get a lot of things for free. Your social life won't suffer because you have set a limit for your spending.
Save a little
Before you roll your eyes, let me explain what I mean. Being in college is almost synonymous with being broke. But I believe you should save something -- anything -- every month. When you graduate and get a full-time job, of course that amount will be more. You'll invest in a retirement plan and begin to save for big moments like your wedding or your first home. Start saving now so you can get in the habit of putting something aside. Even if it's $10 or $15 a month, good for you! You are building something, so be proud of that fact that, even on a college student's budget, you can save.
Stay away from credit cards
There are other ways to build credit than by getting a credit card. Don't believe that when people tell you it's a good reason to get one. Credit cards aren't for people who can't afford to pay them at the end of the month; I'm betting that, since you're in college, you don't have sufficient income to make those payments. You already have loans. Don't add on more (with terribly high interest rates) with credit cards.
Julie Murphy Casserly, founder and President of JMC Wealth Management, Inc., is a certified financial planner professional. She graduated from the University of Illinois at Urbana-Champaign in 1995 with a degree in finance and received her MBA from the University of Notre Dame Du Lac. After graduating, Julie sold mutual funds, insurance and annuities for a national financial services firm before starting her own company, where she could spend more time getting to know her clients. Julie believes that even if people look like they fit a certain mold, they often have very different attitudes and needs and that “people can only stick with a plan if they face the emotions behind it.” Her firm helps clients increase their quality of life by shifting their financials for a life lived with an abundance of financial freedom and wealth. For more information, please visit http://www.jmcwealth.com/.© 2015 Julie M. Casserly
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