College years can be deteriorating to more than just the waist line.  It is no secret that for most of us began, and declined our credit in the same four years of our lives.  We see this all the time at Indianapolis Bankruptcy Lawyers.  Why is it that we make such poor financial decisions when we are young?  It could be lack of knowledge, lack of priority, or lack of a plan.  The truth is that most college students have no idea how much they are actually spending, and how many bills they are racking up.  Creating good spending habits during these crucial years is both desirable, and important.  Following a few simple tips, these habits will be easy to form.

The first and most important step is to keep a budget.  Sit down and calculate how much money you are earning, including regular money for loans, from a job, or if so lucky, from mom and dad.  Then list each reoccurring bill and the average amount you pay for such bills.  Do not forget things like textbooks, cell phones, insurance, gas, rent, cable, internet and other utilities.  In the next section, list out categories your regularly spend money on.  Create a category for food, entertainment, clothing, and anything else that you pay for on a monthly basis.  Before you calculate the amount that you can allow yourself to spend on each of these categories, write out two extra lines that say the following: EMERGENCY FUND, and SAVINGS.  Each month, we suggest that you place 10% of your income in each of these categories.  Then divide up the rest of the leftover money in the other categories, and monitor your expenses.  A budget is only doable if you review it and adjust it monthly.  It is not meant to place extra financial pressure on a person, but to make them aware of the money they are spending, and the money they are saving.  It also creates a guideline of what you actually have available to spend.  Forbes magazine mentions that the average college student spends $20 per week on beer.  This does not sound like a lot, but that is $1040 per year in Anheuser-Busch’s wallet.

Cash it up!  Avoid using your debit card.  For a night on the town, calculate how much you have to spend, and only bring that amount in cash with you.  Ban yourself from any ATM visits.  Bring cash to the grocery store, clothing store, and anywhere else you may go.  Protect your budget!

Credit cards are great for establishing credit, but if you can avoid them, do it!  Expect the interest rates to make an enormous climb within the first 3-6 months of having the card.  Consider using a secure card to establish a line of credit.  If you must have a credit card, do not use it for routine living expenses or a night on the town.  Both things add up quickly, and create boatloads of debt which could have easily been avoided.  Keep in mind that credit cards are essentially loans.  Any charge incurred, must be paid pack, and you will pay more due to interest.

Avoid frivolous expenses as much as possible.  If you can, leave your car at home.  This cuts out gas, insurance and general maintenance fees, leaving you with more money, or less work time and more study time.  I have heard it said that parking fines are a tax on stupidity and laziness.  Walk the extra block to avoid the fee.  Return your library book s and movies on time, and pay your bills on time.  Late fees are waste of money, and add up quickly.  Also, always ask for the student discount.  You would be surprised at how many companies offer them.   Other things to look for are free checking accounts, high savings account interests, thrift store clothing finds, and apply for every scholarship imaginable.

All too often we see people drowning desperately in debt, and it usually starts with a few small bad habits that began in college.  Starting and sticking to a budget is the first step into a financially successful future.  Begin your budget and then search for other money savings tips. For more information about our company, visit Indianapolis Bankruptcy Lawyers .