In terms of preventing yourself from going broke, your freshman year of college is usually always a fun experiment. The best step towards diversifying yourself and establishing your independence is by spending your income tactfully and (hopefully) in a sustainable manner. Additionally, establishing a means of generating more income will not hurt you either. All of this will assist you in developing productive spending habits. Whether you’re attending UC Santa Barbara or NEC Online, spending in college does not have to be the complicated nightmare it has become for so many. So, without further delay, here is a list on how to prevent yourself from going broke in college.
1. Develop a Budget and Stick to It
Developing a budget is never a bad idea once you can get past the initial lethargy of actually taking the initiative to do it. If I were you, I would do this as soon as possible, as incoming freshman are notorious for overspending. Developing a budget and sticking to it will enable you to determine exactly how much you spend, allowing you to attain a better grasp on your finances.
2. Monitor Your Earnings and Expenses
Establishing financial independence means that you will have to develop a habit of keeping track of your expenses. This means you will want to ensure that you are competently monitoring the amounts you earn and spend on a monthly basis. Becoming more aware of your expenses will enable you to form a decisive picture of your spending habits, which will empower you to change those habits as you grow wiser.
3. Create the Budget
The time has come. Now that you have a better idea of what you need to do, it is time to do it. When generating your budget, you will want to have an exact amount pertaining to your gross and monthly income, be able to distinguish wants from necessities, know when your bills are due and how much they will cost, and calculate the amount of money you will deposit into your savings account every month. Writing all this out will help you to visualize so that you can calculate your expenses more effectively. This will help you minimize the chances of any mistakes occurring and give you a better idea of how much money you should be budgeting each month.
4. There Are a Lot of Budgetary Apps and Programs Out There, Take Advantage of Them
There are many programs and apps out there designed to help you quickly and efficiently create your budget and track your spending. Whether you use your phone or your computer (both have their pros and cons), make sure you do your research before settling on a specific one.