Little Financial Advice
Save. Seriously.
I mean it. College is the perfect time to be a little stingy. Start putting some of your money into savings now. It doesn’t need to be a huge amount, just start. Watching your savings grow will feel so satisfying.
You Don’t Need to Be "Rich" Right Now
I know we tend to feel we need to show that we are so cool and we are rich and we got iphones and papa ke paiso ki car and everything. Do it. Have fun. Spend money a bit irrationally. Buy that super expensive boots that you won't really wear cause they are so uncomfortable. Or that H&m ki dress.
But you know what's the benefit of being in college?
No one expects you to be rich in college. It’s actually socially acceptable to be broke! No one will question you if you say, "I can’t do that, I’m low on cash right now."
Use that excuse religiously. Then put that saved money towards investing on something.
Start Small with Tracking your Spendings
I know you can’t change your spending habits overnight, and that’s okay. So, start by really tracking your expenses. Keep a record of every single rupee you spend. Do this for a month or two and take a look at your patterns.
You’ll start to notice where all that money is going. Trust me—there are always some unnecessary payments and impulse buys creeping in. Understanding your spending habits is the first step in being able to adjust them.
When I started budgeting, these were some of the patterns I found in my spending habits that I knew I could change:
I use to spend a lot on food, especially during exam season. I realized that when I am moody, I spent a lot on chocolates. Plus, I used to do my work last-minute, so I used to see going down to mess from my room as time wasted during my exams. Plus, I don't like the time-consuming process of making food in hostel as much as I love cooking, which is why I would splurge on chips, maggi, chocolates, takeouts, etc.
I used to spent monthly on fast fashion too. This was easily fixable. It was hard but I started saving up on buying good quality clothes.
I used to spent (I still do) a lot with and on my friends. All of us are very kharcheelein people, I would not lie. And when we get together, we come up with crazy ideas and just have to spend money on them. Since we have grown a bit from our first year of college, so spending on drinks, etc is very less now. We also installed Splitwise to keep track of who spends how much.
The point is a lot of our spending is tied to our habits and behaviours. Tracking your money would highlight all these issues and hopefully make you realize where you need to change. All of these issues were easily fixable and with time I did fix them.
Put yourself on budget in the areas where you can
Start putting yourself on a budget, especially in areas like food. For example, I gave myself a strict monthly limit on takeouts—no more, no less. I told myself ki itna hi spend krungi khane per and usse 1rs zyada nahi.
I also knew that controlling my spending with friends was going to be tough, so I chose to set tighter budgets in other areas.
Honestly, there’s no single rule that works for everyone. The 50/30/20 rule sounds great in theory, but for me, it didn’t quite fit the reality of my spending. In college, don’t be too harsh on yourself with your budget—it’s about balance, not perfection.
You know yourself best. Look for the areas where you can make small changes and start there.
If you’re used to spending too much, don’t aim for huge savings right away. Start by saving just 100 rupees a month, and then gradually increase that amount. Setting big goals can make you feel overwhelmed. You might end up feeling bad for not meeting them and then splurge just to make yourself feel better. It’s a cycle you don’t want to get stuck in.
So, start small and build from there. You’ll get there with time.
Use Tools to Help You Track Spending
One game-changer for me was using Splitwise. It helped me and my friends keep track of expenses when we went out. No more confusion about who paid for what or forgetting to pay each other back. Just enter the amount in the app and it does the math for you.
Use Cash Whenever Possible
Try paying in cash instead of UPI. You’ll be surprised how much more you’ll pay attention to your spending when you can physically see the money leaving your wallet. Cash is like a reminder that it's disappearing right in front of you.
Invest, But Start Small
Lastly, invest. I mean, I'd say educate yourself first and then choose how you would want to save your money. I started with Gold Funds and Mutual Funds. And I started small there too. I just started with 100rs going to Gold Fun and 100rs going to Mutual funds. Now, I put 500 monthly to MFs and whenever I get huge payments or any big amount of money, I put 1/3rd of it in MFs too.
The key takeaway: save. That money is yours. The power of compound interest is real—it grows your money over time. And that saved money? It’s your safety net. If you ever mess up or need a quick emergency fund, you’ll have something to fall back on.
Isn't that amazing?