Tuesday, 17 September 2013

BUDGETING TIPS and TRICKS for FIRST YEARS

By: Kananelo Ramatsepe

Now that you’re living on your own for the first time in your life, it is time to accept the hard hitting facts of life, the reality of your new financial situation.
You are close to broke, all day, every day because you spend most of your money in the canteen or shopping, and you are eating the wrong  types of foods because you're trying to be the next great “self- made master chef” by experimenting with all your leftovers, which is also a problem because that can affect your health. 
So what do you do as a first year student who has finally gained the freedom and independence that you have been longing for since you were a teenager. Naledi Harmony Motingoae, Finance and Business Services Manager at Naso Communications says, “It is definitely possible to survive on a student budget.” Here are some tips from Motingoae on how to do it:
Calculate And Allocate a Budget
There is no magical method for managing a budget and staying in control of your spending. At the beginning of each month it’s important to spend a bit of time working out exactly how much you have to spend, and what can you afford to spend it on.
Do some comparing
It is worth putting some effort into finding the best deals around – especially when it comes to things like student bank accounts, cell phone and data bundle contracts, as well as knowing on which day of the week which grocery store has a special. 
Think twice
Always establish if what you are about to buy is a need or a want. Buy what you need and cannot survive without first, then if you have extra money you can maybe squeeze in that t-shirt you have eyeing for awhile. Buying healthy food can also work out to be cheaper than spending that money on junk food, so also choose healthy. You will reap the rewards in your old age. Sometimes you are just going to have to sacrifice some things and go without them.
Buy in bulk
Most times it works out cheaper to buy groceries in bulk and to also cash in on those 2 for 1 deals. You might think, "What difference does R2 make on an item?" but it is going to save you money in the long run. You can also split the cost and share items with your housemates. Just make sure that you all like buying similar stuff to avoid drama and unnecessary fights. Another great way to save money while shopping is to shop on a full stomach. Those hunger pangs will make you pick expensive snacks you can’t afford, so eat before you go shopping.
Invest in a Piggy Bank
You are never too grown up to own a piggy bank. Saving the coins you get every time you get change will come in handy one day on a rainy day. Maybe every 3 months you can take some money out of it to add to your grocery budget, or a night out with your friends to the movies. Don’t empty it all out at once!
Old Gold and Black says on its website (oldgoldandblack.com), “If you are eating off campus, make sure to bring cash (or get your waiter to split the cheques)! It’s easy to get caught up in a group dinner where you’re the only one with a credit card and wind up paying for everyone’s meal.” 

Power Down

NZ lifestyle on yahoo suggest one tip that many tend to ignore and not take seriously. When going out, turn off everything at the wall: lights, computers, stereos, lamps etc. You might want to leave the fridge on though.

In the words of Warren Buffett, “do not save what is left after spending, but spend what is left after saving”.

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