Mothly Money Runs Out Quickly? Here are Budgeting Tips For You!

Budgeting plan illustration (made with canva)

It's almost time to start lectures, right? Who can't wait to become a new student? Especially if you study outside your home region or outside the country?

Being an overseas student is an exciting and challenging experience. On the one hand, you will feel freedom and independence, but on the other hand you also have to be responsible for your own life including financial matters. Without good management, you might run out of monthly money in the first week. Surely you don't want to have to be as frugal as possible in the following weeks?

Well, so that you can stay frugal and comfortable living life as an overseas student, let's look at some ways to manage finances that you can apply!

1. Create a Realistic Monthly Budget

First, you can make a plan of all income and expenses. The income can come from parents' monthly money, scholarships, or if you may do part time or freelance. Meanwhile, for expenses you should be able to divide them into:

• Basic needs (boarding, food, electricity, and water)
• Transportation 
• Academic needs (stationery, printing, class fees, etc.)
• Savings or emergency fund
• Entertainment & personal needs

By making a clear budget, you can avoid impulsive spending or spending that you don't really need.

2. Prioritize Saving

Don't wait until you have money left over to save. Try to routinely save money per day or per week even if it's only Rp10,000-Rp20,000. This fund can later become a reserve fund that is useful when you need sudden money (for example, when you have to go home suddenly or buy medicine). You can save using a piggy bank, or utilize digital wallet apps or a separate savings account to save regularly.

You can also read: Student-Style Life Balance: Stay Productive Without Disrupting Academics

3. Shop Smart

Who is often tempted to buy things just because the shape is cute? The color is interesting? You shouldn't do that anymore, because sometimes it just wastes money. You can shop smart by utilizing promos & discounts to shop for basic necessities for example. Or, you can also cook yourself. In addition to being healthier, of course, cooking yourself will save you a lot of money compared to snacking out every day. For items such as books, boarding house equipment, or clothes, if you want to save more money, you can actually buy used goods at a low price but still worth using.

4. Avoid Debt

This is something you should definitely avoid. Moreover, don't be tempted by instant online installments or loans. If you really have to go into debt, make sure the purpose is productive and you have a clear payment plan. And it would be better if you ask for help from your closest friends or relatives. That would be better than online loans that could actually be your trap. 

Managing finances as an overseas student is not as easy as it seems. But it is very possible to do if we have the intention and discipline. Getting used to good financial management from an early age will be very beneficial for your future, especially if you later live fully independently. Start small by recording your daily expenses or saving your spare change. Because from small steps, you can build a strong financial foundation.

Let's become financially wise overseas students!

In addition, you can also watch @ZahidIbrahim's YouTube channel.