It is difficult to take care of money at university, especially if you receive money for part-time work. You might end up using your money sooner on food, nights out, or shopping at the mall. However, it is wise to know how to save money and budget at a young age. It will prevent you from going into debt and prepare you for upcoming expenses. In this blog, we will give simple money-saving tips and budgeting for your student part time job.
1. Know Your Income
First, you need to know how much cash you are earning. If your part-time work gives you your earnings weekly or monthly, put down your exact income. Also, include any tips, bonuses, or freelance income if you get any.
For example, if you are working for 20 hours a week and earning ₹200 an hour, you earn ₹4,000 a week. Multiply this by how many weeks you are working in a month, and you will know how much you earn in a month. When you know how much you earn, you can plan your expenses accordingly.
2. Keep track of Your Expenses
To make a budget, first, you need to understand where your money is going. For one month, write down everything that you spend. Write down everything you pay for, even if it’s not important. These things include:
- Food and snacks
- Transportation
- Mobile and internet charges
- Subscriptions (like Netflix or Spotify)
- Shopping
- Social events
You may also maintain a notebook, an Excel spreadsheet, or a budgeting program. Monitoring your spending helps you see where your patterns are and where you can cut back.
3. Make a Simple Budget
Once you know how much you make and spend, create a simple budget. A budget is a money plan. Divide your income into groups like:
- Needs: Rent, food, transport, and utilities
- Wants: Eating out, cinema, and shopping
- Savings: Emergency fund or long-term objectives
A good way to plan your money is to spend half on needs, about a third on things you want, and save the rest.
- 50% of your salary for needs
- 30% for wants
- 20% for savings
Suppose you earn ₹16,000 a month. Your budget will be as follows:
₹8,000 for needs
₹4,800 for wants
₹3,200 for savings
Adjust these percentages based on your lifestyle and commitments.
4. Set Clear Saving Goals
Saving is easier when you have a target. Ask yourself: What am I saving for?
It could be:
- A new laptop
- College expenses
- Travel
- Emergency fund
Write down your targets and decide how much you need to save and by when. Let’s say you have a student part time job and want to buy a ₹30,000 laptop in six months. You would need to save ₹5,000 every month from your earnings. Having a target in mind motivates you to manage your income wisely and save regularly.
5. Open a Savings Account
Separate your savings accounts from your daily money for spending. Have a bank savings account for being a student. This will discourage you from spending the money you are saving. Look for no-fee accounts monthly and decent interest.
Even some banks have special student savings accounts that come with features like zero balance or cashback offers.
6. Use Budgeting Apps
If you find it hard to manage money manually, use budgeting apps. Many free apps can help you create a budget, track expenses, and set saving goals. These apps give you a clear picture of your money and send alerts if you overspend.
7. Avoid Unnecessary Expenses
Spending a little money every day will quickly add up. Avoid spending cash on things you really do not need. For example:
- Have a takeaway meal at home instead of every day
- Travel on public transport instead of taxis
- Share subscriptions with mates
- Do not buy things you do not need just because they are cheaper
Prepare your shopping trip before you go and adhere to it. Look for student discounts and cashback wherever possible.
8. Limit Credit Card Usage
Credit cards are useful but can land you in debt if not managed well. If you’re doing part-time work, it’s important to use your money wisely. If you take a credit card, always settle the full amount before the due date. Never buy items on EMI unless you have no choice. It’s better to buy things with the money you earn through part time work for students rather than taking a loan and falling into unnecessary debt.
9. Build an Emergency Fund
An emergency fund is money you save for unexpected expenses. This could be hospital bills, an unexpected trip, or losing your job. You can save ₹5,000–₹10,000 as an emergency fund over time. Avoid spending this unless it’s a real emergency.
Having an emergency fund clears your mind and prevents you from taking a loan at a high interest rate.
10. Reward Yourself Occasionally
You need not sacrifice living to save money. Indulging yourself from time to time is fine. Plan your indulgences and include them in your budget. For example, if you save ₹1,000 more than your target, spend ₹200 on something enjoyable. Treating yourself small keeps you motivated and makes budgeting more flexible.
Conclusion
It is crucial to learn how to save and budget your money from your student part-time job. It will help you become financially responsible and learn what it takes to be financially independent. Start by tracking your income and expenses, set clear goals, and avoid overspending on things that you don’t need.
Even when you save a small amount every month, it will add up eventually. Remember, the discipline of saving is more important than how much you save. Being a smart budgeter will allow you to enjoy yourself while learning, while still preparing for your future.
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