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Manage Your Money


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For the most part, when we think about college we think freedom and fun. However, there is nothing fun about daily stressing over your finances and there is no freedom in being chained to an ever-increasing pile of debt. Managing your money is a necessary part of a stress-free college life. You need to begin sometime and it might as well be today.

What college students should know about managing their money:

Money management is generally done through creating a budget. The purpose of a budget is to outline a practical plan for spending the limited money that most college students have. Because your income and expenses are constantly changing, whatever budget you decide to use must be flexible.

The first step you'll want to take is writing down your sources of income. This can include income from a job, grants, scholarships, allowance from home, etc. The next step is to outline your expenses. Split them into two catagories: fixed and flexible.

Fixed expenses are exact amounts that are due on specific dates. Flexible expenses are ever changing amounts of money that you spend on your wants and needs.

Example Fixed Expenses:
- Housing
- Car payment (including insurance)
- Health insurance
- Tuition
- Cell phone
- Savings

Example Flexible Expenses:
- Books and various school fees
- Transportation
- Going over on your cell phone minutes
- Social expenses (movies, concerts, football games, etc)
- Personal expenses (clothes, food, health costs, domestic supplies, haircuts, etc.)

Add up the amount of income and expenses you have (you may need to guess on many of the expenses). Now look it over. Do your expenses exceed your income? If so you should figure out what you can do to increase your income or reduce your expenses (or a little of both). This is simple but necessary if you wish to stay out of the hole during your college years.

It is going to take some sacrifice to reduce your expenses. Many college students are used to spending their money impulsively. This kind of money management leads to financial bondage. Here are some helpful tips that will assist you in reducing your expenses:
  • Pay your bills on time
  • Avoid peer pressure
  • Buy used text books
  • Avoid impulse buying
  • Shop at discount stores
  • Look for sales and use coupons
  • Stop eating out and buying junk food
  • Go to matinees instead of evening shows
Everybody is going to need a different type of budget to fit his or her individual needs. However, basic budgets can be found all over the internet, in finance books or you can simply ask your parents to help you create one. Don't allow debt to chain you down. Find a budget, stick to it, and be willing to sacrifice to stay out of debt.

ABOUT THE AUTHOR
Elise Fisher (creator of about-student-loans.com) loves writing articles to help college students, like herself, learn more about college life. Check out our Other College Information section to learn about college cooking, time management, and other great things!