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Speaking from experience, budgeting can be tough for students. For many, college is the first time they’re in control of their own money, which brings challenges like managing spending, avoiding debt, and learning financial responsibility. Without a clear plan, you can feel overwhelmed or unprepared for the future.
How to Set Goals
In order to set financial goals, it’s important to first figure out how much money you have left each month after covering your bills and monthly payments. This leftover amount, also known as discretionary income, is what you can use for things like food, entertainment, or savings.
Once you understand your financial situation, it’s a smart move to create a spending plan based on your priorities. Students often make lofty financial goals that are not realistic, such as “I am never going to go out to eat” or “I will save all of my leftover money into savings”. While idealistic, it is not realistic that you can live that way for long periods of time. To avoid this mindset, try to make SMART goals.
Specific: What is one or two goals you want to accomplish?
Measurable: How can you check to make sure you are on track to meet your goals?
Attainable: Are the goals that you are making actually doable or are you being too optimistic?
Relevant:Does your goal match your overall goals?
Time: When will this be completed by, and can I reasonably do that?
The more detailed your SMART goal is, the more likely you will be able to complete it. I also recommend that you write down your goal and keep it in a place you see often. This helps you check yourself regularly to see if you are on track to meet your goals.
Using Mizzou’s Resources
While you are in college, it is a great idea to use the resources that you are paying for. Tiger Pantry is a great resource for students who could use assistance with food. They are open weekly and have a wide variety of food, including fruits, vegetables, and shelf-stable food.
When it comes to attire, business casual is the suggested dress code. Truman’s Closet rents out free, formal clothing to all Mizzou students and staff. They have a wide variety of styles and sizes for you to try out. Truman’s Closet is located at the Hitt Street Parking Garage in the same building as Tiger Pantry.
For more guidance on how to make a viable financial goal, I recommend setting up a visit with the Office for Financial Success. They provide 1-on-1 help that can help you, no matter your financial state, the financial coaches are highly skilled in providing personal help based on your life circumstances.
Saving Your First $1,000
Saving your first $1,000 can feel daunting at first, but it doesn’t have to be an impossible task. The key is to break it down into manageable steps and stay consistent. Start by opening a separate savings account dedicated solely to your savings goal. Whether it’s for emergencies, a new car, or stocks. Having a clear, specific goal not only gives your efforts purpose but also helps you stay motivated.
Next, take a close look at your discretionary income (the money you have more freedom to decide what to do with). Even if it’s just a small amount, create a financial goal, whether that’s weekly, biweekly, or monthly. Consistency adds up over time, and watching your savings can be incredibly rewarding.
Don’t get discouraged if progress feels slow. Building up savings takes time and patience, but every deposit gets you one step closer to your goal. If you want to speed up the process, review where your discretionary income is going. You may find areas where you can cut back and redirect more money toward your savings, helping you build financial stability faster.
By Ana B.