Student loans – an alternative for when on a tight budget
The start of your student life - a first big step into an independent adult life. For many people, starting their studies is something new and exciting. Depending on the situation, you may even move away from home, perhaps even to another city. In addition to the fun, this new phase of life also entails a lot of responsibility and planning, such as finding your way around in unfamiliar settings, making new contacts and not forgetting that the whole undertaking must be financed somehow. Learning materials, excursions and other expenses are something a new student has to plan with. Students, who move out of their parental homes also need to add rent to the list of their monthly expenses, no matter if they plan on renting their own flat or a shared apartment. Moneezy helps you with a few tips and tricks to keep track of your finances.
Make a list of all sources of income and expenses
Did you land a part-time job while studying? Excellent! Then you can add your monthly income on the list. Do your parents still support you financially? Even better! As a student, do you receive a scholarship or any state contributions? Perfect! List all sources of income and calculate the total sum. There you have the first half of understanding your budget.
After that, do the same with your expenses. Since it is difficult to list all possible expenses, the main ones usually include:
- Rent, including utilities
- Any insurance and social allowances
- Do you own a car? List all taxes including fuel costs and insurance
- Telecommunications bills (internet, television, mobile phone, etc.)
- Loan or leasing installments
- Other costs based on a monthly payment (streaming and magazine subscriptions, commuter cards for buses and trains, etc.)
The monthly cost of living (food, leisure time activities, shopping, etc.) is also important for the calculation, so do not forget to calculate and include those as well.
After you have deducted all the tasks from your net income, you can see how much money you ultimately have to spare. With this sum you can either create a financial surplus and deposit to a savings account or treat yourself and spend the money on something you like.
Tips on saving money
Now that you've finished the lists and have an overview of all sources of income as well as expenses, ask yourself: “Am I happy with my consumer behavior? Can I save money in any way? Do I need additional income to make ends meet?”. If yes, then see below for our tips on saving money in everyday life.
1. Always go to grocery stores with a shopping list and stick to it. It is tempting to add more to your shopping cart than what you need when walking around the store. A shopping list helps you to keep track of things you need to purchase.
2. Look up whether any companies, restaurants and banks offer student discounts in your area. Some of them might have particularly affordable offers for students.
3. Second-hand is practical and cheap! Be it for furniture or clothes: not only are used items cheaper, but they are also good for the environment.
4. Compare prices: Browse the internet and compare prices and offers either for your weekly groceries or even for larger purchases.
5. Always have an overview of what you are spending money on. There are various apps and templates that help you to keep an overview of your monthly expenses. This way you avoid spending more money than your budget allows.
The internet is full of more tips on how to save money daily. Read up on the options and let yourself be inspired!
Student loan – when the budget gets too tight
Student loans are not always the first that come to mind in case of financial bottlenecks, but they definitely are an alternative for financing your expenses. If you find that saving up and budgeting is not enough, it can be a good option to take out a student loan. Numerous banks have attractive offers with low interest rates and reasonable terms. However, it is also important to first get an overview of your budget and available resources before applying for a loan. With a loan comparison you avoid taking loans with unfavorable terms.