Learning how to handle your finances is something that is really necessary when you only have a limited amount of money available to you. For instance, if you are a student living in a dorm, there are numerous items that you will need to pay for, such as the dorm fee and stationery. In order for you to be able to pay for everything that you owe at the end of the month with the money that you have available to you, you will need to learn how to stretch that money as far as it will go.
When a young student lives in a hostel for the first time, it is frequently their first introduction to the real world, in which they are required to make their own plans and take care of their own needs without the assistance of an adult. This transition can at times present difficulties for the students. Students might experience some difficulty in making this transition at certain points. Understanding how to manage one’s financial situation is a challenging endeavour that calls for both time and experience. However, if you adopt the appropriate mentality, you will be able to apply the abilities you have gained to every facet of your life.
List the things you need to spend money on
One way to handle your finances well is to be aware of what your needs are. At the beginning of each month or week, make a list of what you expect to spend and keep track of how much money you’ve spent. This way, you can easily compare how much you planned to spend with what you actually ended up spending.
Take responsibility for your finances
You should plan your budget carefully, but also be responsible with your spending. If you’re staying in a hostel, you’ll need to keep a close eye on how much money you’re spending so that it doesn’t run out before you get your next budget. Setting a budget for yourself and sticking to it is a good way to keep your spending in check.
Include your family in financial decisions.
Building trust and reliability within your family can be facilitated by providing them with information regarding your financial situation on a regular basis. The more freely we discuss our past financial experiences as a family, the easier it is for us to gain each other's trust and for our family unit as a whole to work together effectively. In the course of this endeavor, we will also be assisting other siblings in acquiring some of the skills that they will require in order to be successful in later years.
Try not to go over budget
If you start the month out by spending more than you can afford, you should expect to have a difficult time making ends meet in the second part of the month. Maintain control of your spending and don’t go above your budget until it’s definitely necessary. It is in your best interest to refrain from borrowing money from your close pals.
Poor impulse control is another factor in unrestrained spending. You don’t think about whether you need it or have the money to buy it because you want it now. You can overcome this drive for instant gratification by imposing a delay before acting on your urge to spend money. Putting up barriers to buying can reduce the amount spent or even buy the purchasing impulse some time to pass.
Be ready for the unexpected
It's not uncommon to be taken aback by unanticipated expenses that you hadn't factored into your budget. Make an effort to get yourself ready for anything that might come up, rather than being caught off guard when it does.
Just make sure to remind yourself to take a few slow, deep breaths if an unforeseen bill pops up! Even if it may be difficult or even frightening to think about doing it, you are capable of carrying it through. the following words of caution: Keep in mind that you should also be ready to deal with unexpected events in other aspects of your life. It is essential to have cash on hand, as well as supplies and food, in the event that you suddenly find yourself in a precarious situation
Prioritise your needs
Set your needs in order of importance, then prioritise them accordingly. Take care of the things that are the most pressing for you before you focus on anything else. Setting financial goals should be approached similarly to planning a trip. Your starting point is where you are right now, and your eventual goal is where you want to go. You may have a deadline by which you must arrive at your destination or be given the option to do so if you need to pay for tuition.
Use the SMART (Specific, Measurable, Attainable, Realistic, and Time-related) framework to set your financial goals. Once you have a clear savings goal in mind, you may set up an automatic deduction from each paycheck or each month that will go toward that goal.
Keep some money aside and wait until you have enough to purchase something; it will give you greater satisfaction than buying something now and not being able to afford something else later. Anytime you make an unplanned purchase, it is considered an impulse buy. It’s an impulse buy if you haven’t budgeted for it beforehand.
Consider it a life skill
When you move into a hostel, you are accountable for yourself. This may be the first time many have full responsibility over their lives. Hostel living teaches you how to handle your cash and your life. A skill that will serve you well throughout your whole life. When you stay in a hostel, you discover that the other students are actually just like you: they are all just budget-conscious travellers looking to see the world and have fun. Even staying in hostels by yourself can be a life-enriching experience! You get to experience what it’s really like to stay in a hostel, which isn’t all that bad, safe, and full of other life lessons that will help you in other areas as well.