Money Saving Tips for MBA Students and Graduates
When you were in business school, you most likely learned to take a strategic, disciplined approach to finances. As a student, you probably learned to apply those lessons to your own life. Whether you’re still in school or a recent graduate, you’re likely conscious of your budget. Before reaching your earning potential, you may need to start pinching pennies. The good news is that by following a few simple tips, you can embrace a frugal lifestyle.
Create a Budget with Goals
Many people find that making and following a budget a chore, but as an MBA, you most likely have experience with this type of task. Think of it as a business school assignment. What do you need to do to have enough money to enjoy a comfortable life and create savings? It is a wise idea to be specific about savings and spending habits. If it is hard for you to stick to a budget by yourself, consider using an app for money management. On the other hand, if there’s money left in the budget at the end of the month, consider investing.
Consolidate Your Student Loans
Even if you land a great job right after graduation, loans may still leave you wanting for cash. If you borrowed money for business school and want to get a lower monthly payment on your student debt, consider consolidation. Many graduates find that this process helps them pay off the loan faster. Sometimes, consolidation helps you free up cash by getting lower monthly payments by extending the life of the loan. That way, you’ll have more to work with for your budget each month. The type of loan and your credit history will determine how much you can save.
Cut Out Non-Essentials
While in business school, you may have been exposed to wealthy people, and you might be tempted to join their spending habits. However, this is a critical time in your financial life, and it’s a good idea to wait until you bring in more income. For example, look at your subscriptions. Do you need cable, or will a less expensive streaming service do? Is a new car or phone necessary? When you do need to purchase something, consider looking for a used item. For example, you can often find discounts on the previous generation of phone.
Avoid Going Out to Eat
Eating out is a big non-essential that many people struggle with. Whether you’re in school or starting out in the corporate world, you might feel that you don’t have enough time to cook at home. But meals at home only cost a small amount compared to a restaurant. There are hundreds of easy recipes that only take a few minutes. For example, many people enjoy slow cooker recipes. Once you’ve found meals that work for you, consider purchasing your ingredients in bulk. You can also prepare more food than you need at once and freeze the extra for fast meals all week long. Eliminating non-essentials doesn’t mean you will never have them. It just means you’re waiting a few years so you can build up your wealth.