It is common for students in colleges and universities in Calgary to have higher student bills. Most of us tend to fall for the festive season and month-end sales. We happily make purchases, thinking we are saving only to find out that you’re broke in the second week of the month. Well, the fact that you are reading this article suggests that you intend to change your spending habits. You no longer want to be bankrupt by the end of every month. You want to handle your finances in a healthy manner. That’s half the battle won. Congratulations!
Has it ever happened to you that you have purchased something and then felt guilty about it? Do you struggle with your over spending habits? If yes, then these tips to reduce student bills will help you get a handle on your finances.
1. Set a Monthly Budget
To begin with, you need to invest some time having a proper student spending plan or, simply put, a monthly budget for yourself. Having a budget puts you in charge and helps you make the most of your finances. List down all your expenses and estimate the amount of resources you have upfront and how much of it can be used. Then set a reasonable spending target for the month. While setting the target, make sure you are realistic. Estimate the total monthly expense and add 10 percent of that amount to it. This should be your monthly expense target.
2. Record All Your Expenses
As the month progresses, make sure you track all your expenses. Maintain a journal (or download an app) and honestly list down each and every expense you make during the month. This could be your rent, travel, groceries, books and stationery expense, and any other area that you might be spending in. At the end of every month, you can use this information to calculate and figure out where you have gone over your expenditure and what measures can be taken to lower this amount.
3. Develop A Savings Plan
Just like you have a monthly target for spending, you should have a monthly target for saving as well. The ideal scenario would be if you could spend 70 percent of your monthly income or allowance and save the rest. This can go into your emergency fund. If you have the knowledge and expertise, then you can also invest this amount. You can begin by opening a savings account. Read through the banking basics of the Canadian Bankers Association.
4. Find ways to earn money
Your Alberta student aid program or scholarship will only cover a part of your total educational cost. To manage your living expenses, you might have to work part-time or consider taking a student loan. If your college gives you permission, then it is always recommended that you work part-time to manage your living costs.
Do you do something else to keep your student bills low? Let us know in the comment section and help others save too.