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 and 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 entertainments subscriptions. You can gather this data by keeping tracks of all the money you are spending during the month of 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 you financial goals. After you have been 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 your 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. Thai 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 scenarios so you are prepared in case there is instability down the road.  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 eat 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. One of the first thing you can do to start saving money is automating your regular payments and subscribing to electronic bills. Another good way to say money is to be smart when buying and s long your textbooks. My third tip is to try as much as you can to detach yourself from any dependence from external services of 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 20 of some dollars on an inexpensive coffee maker and start perfecting your coffee skills at home. A cool challenge for you to try out is implementing one week without spending every single month. If you live alone and your own food and groceries, this week can work like a purge, forcing you to use the things you currently have in you your pantry and freezer but that you still haven’t gotten to using yet. Thai 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’ll probably forget what you wanted to but in the first place. Of course, take everything with a pinch of salt so don’t forget your weekly fresh fruits and vegetables. Tip number 5 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 money on rent, electricity and gas bills. And if you commute to college, there’s nothing warping with carpooling.