- Banking Tips
- Investment Tips
- Money Management and Budgeting Tips
Make Monthly Budget
Make monthly budgets before you start spending: Students have a tendency so start spending as soon as they get money in their hands. This results into over spending in the first two weeks of the month and going through a tough time throughout the rest of the month. It is always wise to make a monthly budget and dividing it equally over four weeks, if possible. This would set limitations on spending as one would not over spend in one week and suffer the other.
For example: Let’s assume that after deduction of fixed monthly expenses you have Tk10000 to spend over the month. Try dividing the sum into 4 portions, which makes it Tk2500. This gives you an idea of the maximum sum of money you can spend each week.
Allocate a budget for unexpected/occasional spending: It is wise to allocate a small portion of your budget for special occasions that arises more or less every month. Occasions like friend’s Birthday, buying books and stationary warrants for unexpected cost that you might easily over look while making your budget. Setting a separate amount of money for these events can save you from the running out of money before the month ends.
Reduce Unnecessary Spending
Entertainment: While a student life can be dull without entertainment, it can be equally troublesome if he/she overspends on entertainment. Sometimes, it becomes very difficult to cut spending on entertainments sources like: Movies, parties or video games because they can be tempting. But it’s imperative that one realizes their limitations and plan wisely on how much, at maximum, can he/she spend on these entertainments every week. Otherwise, they would run short of money when they require purchasing their weekly needs.
Wants vs. Needs: There is a fine line between needs and wants. When you want something, you wish you can have it, but you can live without it. When you need something, you have to have it, it's essential and you can't live without it. It is wise to focus on our monthly needs first before spending on our wants.
For example: You need a need clothes but you want designer clothes.
Try to focus on your need first, and when your needs are fulfilled and you have enough money left, go for the wants. But always remember saving is better than spending.
Start a savings account: Start saving the spare money you are left with every month by opening a savings account. Savings account can come very handy not only to satisfy your long term needs but also your regular needs, like: Fashionable wrist watches, quality headphones and sun glasses.
Short term DPS: Forcing yourself into saving every month can turn out to be a good habit. You can open a short term DPS with maturity of 1 year or 2 years. A Tk500 DPS per month can be affordable, if monthly budgets are made accordingly. At maturity, you can rip off the benefits of a fairly handsome sum of money.
The next big spending: Every year, at least once or twice, students come across big spending like: Holidays, international conferences and summits. It is imperative that one makes prior plan and preparation by saving for such spending from the very beginning of the year. This would reduce financial pressure right before the spending.
Higher education: Start saving for your higher education that you dream for. Higher education might warrant for a large expenditure. But by saving over years, one can gather enough/ close to enough money required to fulfill his/her dream University degree.