Hello everyone! Today we will be talking about budgeting in
college and some general tips to save your money wisely. Although I am no expert at this topic in particular,
I will be talking about how I have been managing my finances and a few tricks to save more
money than you are expecting. This is the third video on my Back to School
series and, just like I did last year, I will be providing the schedule for all the videos
you might expect during this summer, plus a few unannounced bonus videos and surprise
giveaways that may pop up any day of the week. If you want to stay in touch, it is very important
to subscribe and click the bell button to get notified whenever there is a surprise
giveaway or a freebie coming up in a new video. For even more bonus content I will be posting
study tips on my Instagram and a new blog post up on my website each Sunday. All the links will be provided down below
so let’s get started with today’s video. Even if you think of yourself as someone who
is naturally able to manage money well, it is fundamental to start your financial journey
with a solid budget. This budget should be detailed and contain
all of your income and expenses for a certain amount of time, depending on your own individual
deadlines or goals. The goal is to measure your expenses to your
income, so you can understand when and how much you can spend, and what your absolute
limit is. You should start by tracking all of your expenses,
including that daily Starbucks cup of coffee, and any passive expenses like entertainment
subscriptions. You can gather this data by keeping track
of all the money you are spending during the month or using your bank statements if you
are used to paying most of your things with a debit or credit card. After you have gathered all of this information,
organize those expenses by category and start adding up. This will give you a very precise idea of
how much you are spending during the month and will also categorize all of the items
you could be cutting back to achieve your financial goals. After you have tracked your expenses, be practical
about the true scope of your income. Your income can be an allowance, a part-time
job or a grant, but always remember to subtract taxes and deductions to be fully aware of
how much actually goes into your account. This is called your net income and should
be the basis of your workable budget. After this exercise you should already have
an idea of how balanced (or not) your current financial situation is. If your income is lower than your expenses,
it’s time to start cutting back. The way you cut back on these expenses can
be further defined by your goals – do you want to cover your living costs, save money
in the end of the year or simply tackle your student debt? Whatever your goal is, it should be summarized
into a tangible value that should be planned out into your budget. You can also establish multiple objectives,
defined as short and long-term goals. This will allow you to have a solid notion
of the next couple of years according to your predictions. Always try to calculate your budget by encompassing
the worst-case scenario so you are prepared in case there is instability in your future. Now is the time to adjust your habits. Numbers are numbers, and if your expenses
are higher than your net income, you should rethink the things you buy and consume or
find a way to earn more money. You should also readjust your habits regarding
your financial life. For instance, allow yourself to track your
expenses on a regular basis so you avoid surprises in the end of the month. Be practical and rational about the values
you are seeing in your worksheet and find new ways to reduce the amount you are spending. The following 5 tips have really made a difference
in my financial situation and they may help you cut back on some of those hidden expenses
that we take for granted. 1. One of the first things you can do to start
saving money is automating your regular payments and subscribing to electronic bills. Most companies give a discount whenever you
ditch the paper bill and when automating your payments you can make sure that you will not
be spending money in the future to pay penalties related to any delays. 2. Another good way to save some money is to
be smart when buying and selling your textbooks. First of all, do your homework and make sure
you actually need that textbook to start off with. Sometimes, professors refer textbooks that
are not considered mandatory materials for that class. If you have to buy a new textbook or sell
your old textbooks, you can use a service to compare the best prices for that particular
type of book. Bookscouter, who has partnered with me today
to help me deliver this video, is a platform where people can buy and sell textbooks at
the best possible prices. You can search your required textbook in this
website by using its ISBN number and find a direct comparison between tons of different
vendors and find the best possible price to purchase a new textbook or sell the old books
you don’t need anymore. Basically, Bookscouter allows you to quickly
search all the websites where you can buy and sell used textbooks and it then displays
the prices in one place so you can check the range of offers and decide where you want
to buy or sell your book. Although you can find great deals when buying
books, you can see the biggest difference when trying to sell books, as these dealers
allow you to sell the book for a much higher price than the college bookstore. Also, the shipping is included! For instance, this very expensive book of
Contract Law is being sold at Amazon for more than two hundred dollars. By inserting the ISBN of the book in Bookscouter
I quickly find a couple of offers less expensive than Amazon’s used offers. Then you just pick according to rating and
price and you’re done! All the information regarding Bookscouter
will be provided down below if you want to get to save a few extra dollars in your school
materials. 3. My third tip is to try as much as you can
to detach yourself from any dependence from external services or amenities. For instance, if you are on a tight budget
but still end up going out every single morning to get a cup of coffee perhaps you should
think about spending twenty or so dollars on an inexpensive coffee maker and start perfecting
your coffee skills at home. This can end up saving you hundreds of dollars
every year and can be a fun skill to start perfecting. The same principle applies to water – instead
of relying on water bottles, you can get a pitcher and filter system to save you almost
a thousand dollars a year, depending on where you live, as well as helping out the environment. 4. A cool challenge for you to try out is implementing
one week without spending every single month. If you live alone and buy your own food and
groceries, this week can work like a purge, forcing you to use the things you currently
have in your pantry and freezer but that you still haven’t gotten to using yet. This mindset will also allow you to resist
to the temptation of shopping on an impulse, as you will be postponing any shopping for
the following week, and you will probably forget what you wanted to buy in the first
place. Of course, take everything with a pinch of
fault, so don’t forget your weekly fresh fruits and vegetables. 5. Tip number five is to share your expenses. Instead of paying for your entire Netflix
subscription, share it with a friend and split the costs. You can also find a roommate to save some
money on rent, electricity and gas bills and if you commute to college, there’s nothing
wrong with carpooling. Same thing can even apply to simple things,
like textbooks and printed materials – you can share the costs with a classmate and schedule
some study sessions so you can share the information at half the price and even exchange some ideas
on the subject. If you want another incredible approach to
budgeting in college, I highly recommend you to read an article published in College Info
Geek a couple of days ago, which I will link in the description box below. You can also check out an awesome channel
called Financial Diet that delivers very regular content on financial health and budgeting. I hope you have enjoyed today’s video and
I will see you next week. Bye!