How to Manage Your Finances Better While Studying Abroad?

In the past few decades, countries such as Australia, Canada, the US and UK have become popular destinations among Indian students looking to pursue higher education. Many have realised that studying abroad has its own set of advantages such as it allows you to gain global exposure and secure high-paying jobs. However, you must master the art of money management to avoid any financial crunch, especially while living abroad. Here's how you can do it.

Money Management Tips for Students Studying Abroad

 

1. Set Your Monthly Budget

   Budget preparation is important. It is vital to commit to a budget, whether it is your first day in a foreign country or your final year of college. Many students begin to overspend as soon as they arrive in a new nation. They overspend on things such as shopping, sightseeing, and partying. As a result, the money their parents gave them to spend in a month is depleted in 10 to 15 days.
   Always remember that settling in a new country is not simple. Managing finances in the first two months will be difficult but can be managed if thought through properly.
    

2. Track Your Food Expenses

   University hostels offer meals to students. The cost of food is already included in the hostel fees. Still, many students spend on eating out. It is expensive to eat at a restaurant and this habit can cost you thousands of dollars per month. As a result, keeping track of your food spending is one of the best ways to manage personal finance while studying abroad.
   If you live in an apartment, try to prepare your own meals. It is much cheaper than ordering food from outside.
    

3. Manage Your Travel Expenses

   While studying abroad, avoid taxi rides whenever possible. Cab fares are higher in foreign countries. If you live on or near a college campus, you may want to consider switching to a bicycle. Bicycle rides are not only cost-effective but also beneficial to your health. You can also opt for public transport such as a bus or subway as they are less expensive. If you frequently use public transport then getting a pass might save you a lot of money.
    

4. Get Yourself Insurance

   The worst thing that may happen to students studying abroad is falling ill with no family members nearby. Medical care, whether in India or overseas, is expensive. In addition, paying your medical bills or withdrawing funds from your account while in the hospital is also challenging. Therefore, to avoid such tough situations, it is advisable to get insurance.
   You can get medical insurance through a local insurance company, or get travel insurance in India before moving abroad. 
    

5. Apply For a Student Pass

   Studying at a renowned university overseas has numerous advantages, one of which is a student pass. Such passes can help you get a great discount on restaurant bills, movie tickets, groceries, transportation, and more. You may also enter some events free of cost by simply showing your college ID. So, if money management while studying abroad sounds difficult to you, simply keep your student ID in your pocket while leaving campus, and you will be surprised at how simple it is to save money.
    

Also Read: 8 Financially Prudent Habits for financial stability
 

6. Open a Local Bank Account

   You will incur significant transaction fees if you make multiple monetary transactions from your Indian bank account. If you are withdrawing money from a foreign bank ATM or using forex cards, stop this immediately and go to a local bank to open an account. Furthermore, you must also keep an eye out for the exchange rate while transferring or accepting funds.
    

7. Look for Additional Income

   If you are searching how to arrange funds for study abroad, additional income is the answer. Students taking up part-time work to make ends meet is extremely common in foreign countries. But, before you contemplate this, be sure that your job does not interfere with your academics.
   Several institutions provide on-campus jobs to students. These jobs are not very demanding and can be balanced with studies. You could also look for freelancing work such as writing research papers or designing websites.
    

8. Research College and Hostel Fees

   The fees of different colleges and universities differ from one another. Before deciding on one, you need to carefully compare each of them. You should also see whether you are eligible for any scholarships or financial aid. If this is the case, you should apply for it right away.
   Apart from conducting research, you should look for opportunities for obtaining old books or free study resources.
    

9. Track Your Living Expenses

   You must keep track of your living expenses, such as room rent, food expenses, utility bills, laundry and so on. This will assist you in finding the ideal alternatives. Before choosing your accommodation, make sure to check for value-added services. Examine your choices. Consider room sharing if it saves you a lot of money.
    

10. Limit Your Credit Usage

    Limiting your credit consumption is critical, especially if you have taken a loan for abroad studies. If you use up all of your credit limits in a week or use up the entire amount of your personal loan all at once, you can have problems during an emergency.

Also Read: Personal Loan or Credit Card Which one would you go for

To Conclude

Studying in a foreign nation might be expensive if you don't consider the above tips. Make sure you avoid all unnecessary expenses and keep some emergency funds on hand to deal with unforeseen circumstances.