Going over budget happens to everyone, but it can be especially common and all the more frustrating when you’re a college student already pinching pennies. Unexpected expenses seem to crop up at the most inconvenient times and inflation hasn’t helped matters. When you do exceed your budget, don’t panic or give up! Here are a few tips for how to handle it:
Identify the Cause
The first step is to determine why you went over budget. Was it a one-time expense, or do you consistently spend more in a particular category? This will help you make a plan to prevent it from happening again.
Cut Back on Discretionary Spending
If you went over budget due to discretionary spending, consider cutting back on non-essential expenses such as eating out or entertainment.
Adjust Your Budget
The 50/30/20 budget is a good guide, but it’s not right for everyone. Take a look at the categories that you’re spending the most in and adjust your budget to be more realistic for your financial standing. If you find that your expenses are often exceeding your income, consider adjusting your budget by reducing your spending in certain categories or finding ways to increase your income.
Look for Additional Income
If overspending is a consistent issue with your budget, consider looking for additional income through part-time jobs, freelancing, or other side gigs. We have an article with a few ideas here.
Stay Disciplined
It's important to stay disciplined and stick to your budget even if you go over it once in a while. Continuously monitoring your spending and making adjustments as needed will help you stay on track.
Don't Beat Yourself Up
It's important to remember that everyone goes over budget from time to time. Don’t be too hard on yourself if this happens to you! Try to approach it as an learning opportunity to help you make changes to your spending.
Exceeding your budget happens, but by following these steps you can identify some of the potential causes and hopefully get back on track to avoid overspending in the future. Keep in mind that budgeting is a process, and it takes time to find the right balance for you. Be patient, stay disciplined, and adjust your budget as needed to ensure you have enough money to cover all your essential expenses.
Stay on top of your budget with Kora - the money app for college life. KoraInsights allows you to track your expenses, link all of your accounts, and gives tip on sticking to your budget.
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One of the best parts of KoraCash is that it may help build credit history as you repay the loan. You contribute to growing good credit history without a credit card while getting access to needed funds. It's the best of both worlds!
Learn more about Kora and get started on your money app journey with a company built for college students.