5 Budgeting Myths Students Need To Stop Falling For

5 Budgeting Myths Students Need To Stop Falling For

by Erin F

Being a student, especially a college student, is not an easy undertaking. Aside from having to juggle your time among your studies, doing your chores, and staying on top of extra-curricular activities, being a student also requires being in control of your budget and finances. Almost every student only has a limited allowance, which they should in day-to-day expenses. However, there are simply times that you crave to buy something for yourself. Regardless if you’re saving up for concert tickets, getting started on paying a student loan early, or just want to find extra money from your allowance, sticking with a budget always makes it easier.

Most people enjoy having a budget because it is the best practice for them to take control of their finances and has a clear view of where their money goes, some people simply find it hard and tedious to stick to a budget. In fact, there are a number of budget myths that makes it a lot more confusing, especially for students.

Let’s take a look at these myths and see if there is any bit of truth about these:

1.  I have a budget in my mind

You might think that you can stay within a set budget by just keeping it in your head and not write them down at all, especially if you’re a prodigy at school. However, relying solely on a budget estimate in your mind will only result in loosely budgeted finances that won’t meet your expectations.

If you normally run out of cash or get very low on cash that you have to take drastic measures to cut your expenses, then it only goes to show how much you have to start writing your budget down. After all, a budget in your head will only remain in your head.

Budgeting your finances requires constant tracking, and not writing it down leaves too many rooms for error and budgeting discrepancies.

5 Budgeting Myths Students Need To Stop Falling For

2.  I don’t have the money and budgeting just won’t cut it

If you feel like the money you get every now and then is barely enough to properly cover your expenses, don’t you think it’s more relevant for you to come up with a budget?

Even if you’re essentially broke with the amount of money coming in, keeping a tighter control on your expenses will eventually help you save a few dollars a week. Start budgeting your funds little by little by aiming to save at least $5. Once you become comfortable with this, increase it to $10, and so on. Do this diligently throughout a year, and you’ll be surprised that you might end up with about $520 of savings.

3.  I have all the money so I don’t need to budget

On the contrary, you might feel it’s okay not to have a budget if you’re always flushed with cash. You can make ends meet anyway, so why bother making a budget?

Even if your cash inflow can cover your basic necessities, sticking to a budget will help you prevent pointless purchases.

4.  Budgeting is time-consuming

At first, the idea of creating a budget can seem too tedious and time-consuming. Seeing your friends who keep a close track of their budgets take notes every time they purchase something seems like a very daunting task that you simply can’t imagine yourself doing.

However, today’s technology allows for easier finance management. Come to think of it: if you so will spend a few hours a day on Facebook browsing away precious time and allowing organizations like Cambridge Analytica to exploit your information, then creating a budget shouldn’t be that hard. It’s all a matter of priority and focus.

5.  Budgeting is not for students

We all know that being a student is a chance to prepare for the “real world”. And since having a budget is vital to independence, you will find it easier to create a budget if you’re already used doing.

Falling prey to these myths will only make it hard for you to be in control of your finances. As a student, you should know why budgeting is all the more important, especially since budgeting early on will provide you with better management skills to keep paying your student loans. Together with tools such as a student loan calculator, paying off your student loan faster can be done with proper budgeting.

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