College life is full of fun, studies and new experiences. But at the same time, the tension of money also does not leave the chase. Most students struggle with a shortage of money, sometimes even get stuck in the burden of loans or credit cards. In such a situation, it becomes very important to manage money wisely.
In this article, we will give you a simple and detailed guide – so that you can learn financial understanding during college days and prepare yourself for the future life.
1. First understand – what is the difference between needs and wants?
Before making a budget, it is very important to understand what needs and wants are.
Needs are those things that are essential for your living and studies – like rent, food expenses, books, internet, mobile bill, travel pass etc.
Wants are things that make you happy but are not essential – like a new outfit every month, online shopping, expensive coffee, parties or new gadgets.
Example: Suppose you have ₹10,000 per month. Now if you spend ₹3,000 of that on a new mobile cover and an expensive shirt, you may fall short of money for essential things.
So, learn to postpone your desires for a while – this is called Delayed Gratification.
2. Learn to make a budget – the easy way
Making a budget is not rocket science. It has a simple formula:
Step 1: Know your income
If you do a part-time job or get pocket money from home, note down the total monthly income.
Step 2: Divide expenses into two categories:
- Fixed Expenses: Those that remain the same every month – like room rent, mobile bill, metro card.
- Variable Expenses: Those that change every month – like food expenses, movies or outings.
Step 3: Follow the 50/30/20 rule:
- 50% for needs (rent, groceries, travel)
- 30% for wants (movies, food delivery, shopping)
- 20% for savings (future, emergencies, goals)
Example: If your monthly income is ₹10,000:
- ₹5,000 for essential expenses
- ₹3,000 for fun and hobbies
- ₹2,000 for savings
3. Use mobile apps to track budget
Nowadays there is an app for everything – so why not a budget?
Some of the best apps:
- Rocket Money: Tracks your expenses, sends alerts when you go over budget, and also manages subscriptions.
- Walnut, Money View, Goodbudget: These are also easy and reliable apps.
If you are not tech-savvy, you can also use an Excel sheet or notebook.
4. Emergency savings – A must!
Anything can happen in life – your laptop suddenly breaks down, there is a medical emergency or you have to go out for an exam.
Keep aside at least ₹3,000 – ₹5,000 in emergency savings for such times. It may seem a little difficult in the beginning but it will be very useful in the future.
5. Avoid impulse buying
Social media nowadays shows things that compel you to buy – TikTok Shop, Instagram Ads, Amazon Sale.
Ask yourself before buying:
- Do I really need this thing?
- Did I ever think about it before I saw the ad?
- How much will I actually use it?
- Couldn’t this money go into savings or something more important?
These questions can save you money.
6. Use credit cards wisely
It’s easy to buy with a credit card – but it also comes with bills and interest.
Unnecessary purchases can put you in debt.
If you have to use a credit card, pay it off in full every month.
Use it as a tool to improve your credit score, which will help you get a loan.
7. Review and adjust the budget from time to time
The budget is not set in stone.
If your income has increased or expenses have decreased, update the budget.
At the end of each month, sit down and look:
- Did you spend within the budget?
- Could some expenses be reduced?
- Could savings increase?
This habit will make you more responsible.
8. Practical example – Learn some easy ways
Example 1:
Rahul, an engineering student, survives on an income of ₹8,000 per month.
- ₹4,000 room rent and food
- ₹2,000 self expenditure (Netflix, occasional eating out)
- Saves ₹2,000 every month in an emergency fund
Example 2:
Sameera, a mass communication student, suddenly had to pay ₹1,500 to attend a workshop.
Because she had already saved, she did not have to borrow from anywhere.
9. Why is budgeting important while in college?
- Loan prevention: The burden of student loans can bother you later.
- Self-discipline: Managing money teaches self-responsibility.
- Future preparation: This habit will help you when you get a job.
Conclusion: Control money, not life
College days are not just about studying, they are the foundation of your life. The sooner you learn to manage money, the sooner you will become financially independent. A little planning, a little control, and a little understanding – this is the key to successful budgeting. So make a budget today, follow it and see how both your life and pocket improve.
