The common joke about college is that it makes you broke. Today, I want to give you five tips to help you be more financially responsible in 2018 and beyond. Before we dive into the list though, let me just say that though these may not make you money, they can help you save money and when you eventually move on from college and start to net a positive income, these can definitely become invaluable practices in thought and action.
1. Create an Organized Budget or at the very least, give yourself a set amount of spending money each week.
When I think about being financially responsible, it’s tough not to immediately think the first thing that should be kept in mind is knowing where your money is going (which I will go into more detail later on). Keeping a budget can help you decide where your money should be allocated and gives you a better idea of your needs (expenses and essentials) versus wants (money you could be saving each week). As a side note, if you do not know where your money is going, friend, I’m afraid this article isn’t going to do you much good. To everyone else, having a budget is something that we are all eventually going to have to do one day, so why not get a head start on everything and take initiative. Sure maybe you don’t need to start making ten-year financial reports, but it’s never too early to plan for the future
2. Take it a step further and record all your financial transactions.
As a finance major, I love numbers and data. One of my favorite tools to use is Excel. I try and keep record of all the times and places that I spend money as well as deposit and withdraw money from the bank. Using something such as Excel can really help you see trends in your spending and help keep yourself accountable. Also, in my opinion, it helps you become more disciplined and frugal about your spending, because the less you spend means the less time you have to take recording and adding up the math at the end of each month! Many people have negative denotations with the word frugal; however, to me, all it means is being a good steward of your money.
3. Take advantage of discounts.
There are so many opportunities to save money out there—you just have to know when and where to look. Finding great deals on things can be tedious and arduous, but there’s no better feeling then knowing you just saved money. Cheggs for textbooks, frequent flyer miles for airfare, student discounts, and opening something such as a checking account for free money are a few of the resources available to get the most out of your money. In addition, knowing when to look for things can help as well—I scored a ton of great deals the week after Christmas! Lastly, maybe the best resource out there for helping you find those sales and discounts are right in front of you in the form of your parents and family. If you don’t feel like you’re a natural at finding those deals, it never hurts to ask!
4. Be Patient and Make Sacrifices
This goes along with number 3, but waiting to make that purchase that you’ve been dying to make for a long time will pay dividends in the end. Speaking from experience, there is no more disappointing feeling then seeing that item you bought a few weeks back marked down half price and knowing that all you had to do was wait a bit longer. For me personally, I go with my instinct. Sometimes that means I don’t buy something I want and sometimes that means I decide it’s worth it. In the end, the times I decide not to buy builds character. A lot of times, I look back and thank myself for deciding to not buy something—waiting can determine whether or not you truly want something.
5. Put things in perspective.
As a Christian, I believe that God has given us everything we have. To that effect, our job is to be good stewards of all of our possessions, and this extends to being smart with our money. Furthermore, because our money is not truly our own, it is my belief that we should never become too attached to it. Some people say that money is the root of all evil and although I don’t go so far as to say that, I do believe that money can be the root of a lot of peoples’ problems when they let themselves become too enamored by it. Money is a currency used in business and is definitely a large part of life (hopefully, or I might be out of a job), but it is not meant to be loved. That is reserved for people and people alone.
A lot of this list has been tips to save money, but in actuality, being financially responsible is so much more than that including things that I still need to learn myself. I hope this list gives you something to think about for your 2018. Here’s to a year full of planning and saving with a few (maybe) Excel spreadsheets mixed in between.
