How to save money as a student in India?

How to purchase a house in India

Wondering how can save money as a student for trips, education or Loan repay. It is achievable if you follow through these easy tips. Read on..

I can’t wait to attend college. It will be so much fun. We’ll party all the time. I won’t have to study after all. These are some common dialogues school students can be spotted saying.

College can be a difficult place, especially financially. Having to manage education, stationery and of course parties, it is often assumed that college students suffer from a cash crunch.

There is a meme about college students which says, “I’m so broke, I owe myself money!”

Freshers often struggle to manage the limited allowances their parents provide them with as they don’t know how to save money in college. However, to prepare for the bumpy road ahead, you must make provisions to save as well as manage your expenses. Saving your money will ensure you are never out of cash in times of emergencies.

In order to save, manage as well as grow your funds day-by-day, we at Bachat have prepared a money saving plan for students and young personal finance enthusiasts!

Read on.

Make a Budget

How to save money as a student budget

Since you’re young, you’ll probably have limited responsibilities and therefore, you probably won’t have a lot of expenses. Your expenses are most likely to juggle between education to groceries to rent.

Although you don’t have a lot to budget for, if you want to learn how to save money as a college student, it’s a good idea to develop and review a budget periodically so that you can save, manage and expand your money in the future.

To begin with, make an estimate of all your monthly expenses and write them down. These can include major expenses like rent and even minor ones like stationery.

Then, to complete your analysis, have a look at your bank statement to determine your actual total monthly expense.  

Now after this, split up these expenditure categories into various classifications:

  • Rent
  • Utilities
  • Groceries
  • Recreation and fun
  • Food
  • Wi-Fi and mobile phone services

At that point set a spending limit for every classification, ensuring that your total spending limit on all these categories does not surpass the amount which you afford to spend every month.  

To make this exercise easier, experts prescribe utilizing the 50/20/30 guideline for your expenditure planning. It’s one of the most important money saving tips for college students.

The 50/20/30 rule offers a fundamental budgetary system for your spending and sparing. The standard says that you ought to burn through half of your pay on your everyday costs.

According to this guideline, you should invest 20% of your salary in investment funds and make provisions for savings. You can utilize the rest 30% for recreational activities without worrying about a cash crunch.

Since the 50/20/30 standard is just a guideline, there is some adaptability. If applied correctly, you can learn how to save money as a student without working.

You can change the specific portions dependent on your individual circumstances and preferences and steadily start saving money in college!

The fundamental thought is to confine your everyday costs to generally half of your pay. That way, you’ll have enough remaining for your savings and recreation.

Start a Savings Account

How to save money as a student Save

Although it sounds difficult, it is one of the easier to implement saving tips for students.

Start a savings account as soon as you enter college. Whatever savings you have at the end of the month must be transferred to this separate account to prevent you from spending that money.

It doesn’t matter how much you save, what matters is that you save.

This way you’ll not have to worry about overspending and running out of cash.

Start Building Credit to save money as a student

How to save money as a student - build credit

Having a strong financial record doesn’t make a difference presently; however it can have a major effect later on throughout everyday life.

In addition to the fact that it makes it simpler to tap career-related opportunities, it can likewise enable you to get advances and loans like home loans, vehicle loans, new credit card etc. in the future.  

Therefore, it is important that you pay attention to your financial record and inculcate the habit of paying the due for your credit card as and when the deadline comes in addition to making all other payments on time without any delay.

Find a part-time internship

Get Internship Bachat

In the event that you haven’t as of now, begin searching for an internship.

An internship will serve two purposes.

One, it will definitely add to your monthly allowance which will give you extra financial support. You can start to earn money as a student.

Two, the internship will add a line of glitter in your prestigious resume.

See, I told you an internship serves two purposes.  

Finding a less stressful and work-load job will help you focus on both your studies and work.

You could likewise search for a full-time summer internship which will offer you greater experience and guess what, greater stipend. Voila!

Make use of used books and notes

How to save money as a student - used books

One way to save money as a student to make additional money is to use used books and notes.

This can be done in two ways.

One, you can sell your used books and notes which you have no utilization for.

For instance, you can ask your juniors if they want your books and notes. You can make easy money in this way.

Second, you can yourself use someone else’s used books instead of buying fresh books to save money.

You can likewise list your old garments, toys, or shoes that you’ll never use again fit on OLX or similar sites.

Do not spend on Exorbitant Gadgets

How to save money as a student - gadgets

College is a place whose second name is peer pressure.

Seeing other students with latest, exorbitant gadgets can often leave you with a desire to buy these gizmos. However, you should first carefully consider your actual requirement for these gadgets and then even consider buying them if you want to crack how to save money in college life.

Expensive purchases like these can easily burn up a huge hole in your as well as your parents’ pockets. Therefore, it is advisable that you stay away from expensive gizmos until absolutely necessary.

Limit Eating Out

How to save money as a student - food

Hostel food can be a pain in the…well, mouth! Quite literally! Although I know this is a difficult advice to follow since eating out is the only option most outstation college students have, but it is essential that you control your eating out streaks in order to save up big time money.

When it becomes absolutely necessary, consider ordering in and avail the numerous discount offers and coupons.

Learn new skills over Internet

Bachat learn skill

You should definitely consider learning new skills over the Internet. Many affordable courses are available online which you can opt for. These skills will add to your skill set and help you update your resume. This in turn will help you qualify for more valuable internship opportunities.

How to save money as a student : General Tips

How to save money as a student Tips

Money saving is something we all wish to do. But, we all know it’s easier said than done.

It may become difficult to manage your living expenses, especially if you live in a costly city.

Here are some general tips and tricks to chop down your everyday costs in each category to answer your question on how to save money as a student:

Housing and accommodation

  • Consider inviting a sharing partner to divide costs
  • Lessen your utilities by being aware of water and power utilization

Grocery and food items

  • Scale back on eating out
  • Use online discounts when ordering food
  • Purchase groceries in bulk

Clothing

Consciously try to build a capsule wardrobe rather than a trendy wardrobe. This way you can wear your clothes irrespective to the current trend and still be at the top of your fashion game!

Transportation

  • Opt for Metro if available in your city
  • Opt for carpooling like UberPool
  • Purchase a second-hand vehicle if you absolutely need one

Other than cutting your costs, consider a side hustle or working low maintenance work in your extra time. Every rupee saved will add to your savings pool.

If you are looking for more tips on Personal Finance for Young Indians, go read our blog…

Conclusion

How to save money as a student - Conclusion

Growing up is not easy. It’s amazing, but difficult.

Growing up requires money. And we all wish money grew on trees, but hell, it doesn’t.

While your parents and guardians will do their best to make your college life easier, it is really up to you to make your money work for you and multiply it by saving it.

How to save money as a student? – Start saving now and start spending carefully.

No matter how much you save, what matters is that you save. If you start today, you’ll be able to develop a large corpus of money by the time you graduate.

What is a budget? How do I make one?

Since you’re young, you’ll probably have limited responsibilities and therefore, you probably won’t have a lot of expenses. Your expenses are most likely to juggle between education to groceries to rent.
Although you don’t have a lot to budget for, if you want to learn how to save money as a college student, it’s a good idea to develop and review a budget periodically so that you can save, manage and expand your money in the future.

How can students use credit?

Having a strong financial record doesn’t make a difference presently; however it can have a major effect later on throughout everyday life. In addition to the fact that it makes it simpler to tap career-related opportunities, it can likewise enable you to get advances and loans like home loans, vehicle loans, new credit card etc. in the future.  

Should students pursue part time internships?

In the event that you haven’t as of now, begin searching for an internship. An internship will serve two purposes. One, it will definitely add to your monthly allowance which will give you extra financial support. You can start to earn money as a student. Two, the internship will add a line of glitter in your prestigious resume.


Leave a Reply

Your email address will not be published. Required fields are marked *