Though budgeting can be quite cumbersome and a pain to plan out, it is always wise to spend some time taking stock of your finances to avoid being in the red later on. In the initial days when the loan amount and parents cheques are fattening our student accounts we tend to spend as if our three times removed aunt has left us a fortune in Africa that will never get depleted - the result is a debt ridden account that becomes a burden to repay.

It is just not enough to map a budget, you need to stick to the plan and ensure that you have drawn a realistic plan you can stick too. First you need to look at your fixed expenses. Course fees, travel and living costs eat up more than half of your finances and since these are mandatory, they should be subtracted first. Plan the budget for a whole year or at least for one term so that in case you binge in one particular month, the ripple effect can be spread over the remaining terms.

Track all your sources of income, for example, how much are you getting through student loans? How much money is available via your parents and how much can you earn working throughout the year or in the holiday season? Once you have a clear picture of your income, calculate the fixed costs and the variable expenditure per month and then plan your budget accordingly. The simplest way to budget is by taking the total income over a certain period of time and then dividing it by the relevant number of months. It will give you the available spending money per month and based on that you can budget your costs and savings if any.

Create an excel sheet of your expenditure per month or keep an eye on the monthly bills to see where your money is going. Since a lot is lost in miscellaneous expenditure, it is always a good idea to write down the day’s expenses before hitting your bed. Once everything is on paper, you will be dismayed to realize that lot of expenditure was unnecessary and could have easily been avoided. Maybe you are eating out too often or spending a lot of money on long distance calls? Cutting back on these expenses may help you save money for other vital expenditure.

Grocery shopping is a necessary expenditure but you can avoid impulse buying by carrying a list and sticking to the items in it. Use discount coupons wherever possible and don’t over stock unnecessarily. Cut down on exotic and ready made food items and cook as often as possible. While clothes aren’t mandatory, one can’t do without them either. Look out for seasonal sales and discounts when buying clothes or accessories. Never be too shy to ask if the store offers student discount!

Figure out your necessary expenditures. If you are spending a fortune travelling to the university everyday, consider moving closer to the college. Text books can cost quite a bit and buying them second hand will save you quite a sum. While planning your budget, always have an emergency pot for last minute items, you never know how and when you might need it. Finally, if you have planned well and can stay focussed about money there is no reason why you shouldn’t be able to go through college without accumulating any debts.