Do you want to learn how to manage your finance as a student? Do you want to know how to budget better, save more and invest smarter? Do you want to turn your small savings into big returns?
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If you answered yes to any of these questions, then this article is for you!
I’m going to show you how I turned $100 into $10K in one year as a student using some simple strategies and tools that anyone can use. And no, this is not a scam or a get-rich-quick scheme. This is based on my personal experience and real results.
Here’s what you’ll learn in this article:
- How to create a realistic budget that works for you
- How to track your spending and income using an app
- How to save money on groceries, bills and entertainment
- How to invest your money using an app
- How to diversify your portfolio and reduce risk
- How to grow your wealth over time
Ready? Let’s go!
Step 1: Create a realistic budget that works for you
The first step to managing your finance as a student is creating a budget. A budget is a plan that shows how much money you have coming in (income) and how much money you have going out (expenses). A budget helps you:
- See where your money is going
- Identify areas where you can save or cut costs
- Set goals and priorities for your spending
- Plan ahead for emergencies or big purchases
To create a budget that works for you, follow these steps:
- Calculate your monthly income: This includes any money that you receive on a regular basis from sources such as scholarships, grants, loans, part-time jobs or family support.
- Calculate your monthly expenses: This includes any money that you spend on things such as rent/mortgage, utilities, food, transportation, education, healthcare, clothing, entertainment, debt payments or savings.
- Subtract your expenses from your income: This gives you your net income or cash flow. This is the amount of money that you have left over after paying all your bills.
- Adjust your budget accordingly: If your net income is positive (more than zero), then congratulations! You have some extra money that you can use for saving or investing. If your net income is negative (less than zero), then don’t panic! You just need to find ways to increase your income or decrease your expenses until you reach a balance.
To make this process easier and faster,
I recommend using an app called Rocket Money1. Rocket Money is one of the best budgeting apps out there because it:
- Automatically syncs with all of your bank accounts, credit cards, loans and investments and categorizes all of your transactions into easy-to-understand charts and graphs.
- Helps you create personalized budgets based on your income, expenses, goals and preferences. You can also set up alerts and notifications when you overspend or when you achieve a milestone.
- Gives you tips and advice on how to save more, spend less and improve your financial habits.
You can download Rocket Money for free from the App Store or Google Play.
Step 2: Track Your Spending And Income Using An App
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The second step to managing finance as a student is tracking spending & income using an app. Tracking spending & income helps:
- Make you aware of your spending habits and patterns
- Help you stick to your budget and avoid overspending
- Identify areas where you can save or cut costs
- Reduce financial stress and increase confidence
- Spot fraudulent activity or errors on your accounts
To track your spending and income using an app,
I recommend using Empower1. Empower is one of the best overall financial apps out there because it:
- Automatically tracks all of your income and expenses across all of your accounts in one place
- Shows you how much you spend on each category and compares it to your budget
- Alerts you when you are close to reaching your budget limit or when you have extra money to save or invest
- Helps you negotiate lower bills, cancel unwanted subscriptions, get cash advances and earn cashback rewards
You can download Empower for free from the App Store or Google Play.
Step 3: Save Money On Groceries, Bills And Entertainment
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The third step to managing finance as a student is saving money on groceries, bills and entertainment. These are some of the biggest expenses for most students, but they are also some of the easiest ones to reduce with some simple tips and tricks.
Here are some ways that you can save money on groceries, bills and entertainment:
Groceries
Groceries can take up a big chunk of your budget if you’re not careful. But with some planning and smart shopping, you can slash your grocery bill by half or more.
Here are some ways that you can save money on groceries:
- Plan your meals ahead of time based on what’s on sale, what’s in season and what’s in your pantry
- Make a shopping list and stick to it. Avoid impulse buys and unnecessary items
- Use coupons, loyalty cards, cashback apps and online deals to get discounts and rewards
- Buy generic or store-brand products instead of name-brand ones. They are usually cheaper but just as good quality-wise
- Buy in bulk when possible. You can save money by buying larger quantities of items that you use frequently or that have a long shelf life. You can also split the cost with friends or roommates.
- Shop at discount stores or warehouse clubs. You can find lower prices and bigger savings at places like Costco1, Walmart**2** or Dollar Tree**3**. Just make sure you have enough storage space and don’t buy more than you need
- Cook at home instead of eating out or ordering delivery. You can save a lot of money by preparing your own meals using simple ingredients and recipes. You can also make larger batches and freeze the leftovers for later
- Use apps like Ibotta, Checkout 51 or Fetch Rewards to get cashback on your grocery purchases. You can scan your receipts and earn money back on select items
Bills
Bills are another major expense for most students, especially if you live on your own or with roommates. But there are ways that you can lower your bills without sacrificing comfort or convenience.
Here are some ways that you can save money on bills:
- Negotiate lower rates with your service providers. You can call your cable, internet, phone or utility company and ask for a better deal. You can also use an app like Empower**4** or Trim to do it for you
- Switch to a cheaper plan or provider. You can compare prices and features of different plans and providers online and see if you can find a better option for your needs. You can also use an app like Billshark to find the best deals
- Cancel unnecessary services or subscriptions. You can review your bills and see if there are any services or subscriptions that you don’t use or need anymore. You can also use an app like Truebill to help you cancel them easily.
- Lower your energy usage. You can save money on your electric bill by adjusting your thermostat, turning off lights and appliances when not in use, using energy-efficient bulbs and appliances, and weatherizing your home
- Use apps like Arcadia Power or OhmConnect to get rebates or rewards for saving energy. These apps connect to your utility account and help you reduce your carbon footprint and lower your bill
Entertainment
Entertainment is a necessary expense for most students, as it helps you relax, have fun and socialize. But it doesn’t have to break the bank. There are many ways that you can enjoy yourself without spending a fortune.
Here are some ways that you can save money on entertainment:
- Take advantage of student discounts. Many places offer discounts or free admission for students with a valid ID. You can find deals on movies, museums, concerts, sports events and more
- Use apps like Groupon or LivingSocial to find coupons and vouchers for local activities and experiences. You can save up to 70% on things like spa treatments, dining out, escape rooms and more
- Stream movies and shows online instead of going to the theater or paying for cable. You can use services like Netflix, Hulu or Amazon Prime Video to watch thousands of titles for a low monthly fee.
This was it! Enjoy your new-found richness 💰