I started thinking about how I spent money after starting coming to U.S. and thought it would apply for most of the students. It was quite amazing, when I think about how the spending habits changes over time . Here's the timeline
First 3 Weeks in U.S:
Mind calculator will be always at work. Any time you see some product will be multiplied by Rs.50. Yes, it was Rs 48.50 per $ when I came to U.S. First week, I went to Walmart and total bill was around $48 for 2 weeks of groceries.
Second time I went my roommates and it was around $100 and used to wonder, Rs 5,000 would we get so many stuffs back home. If you don’t have part-time job or aid, then for first few months you will hold yourself back from spending more. So, average monthly spending for first 2-3 months will be at very minimum.
After 2-3 months:
You will have SSN and a student credit card with some $1000 credit limit and slowly the mindset will get adapted to U.S. Dollar value. We won’t feel the pain of paying the credit card until statement comes out. Till then anything we buy is free, because the money is all virtual. We don’t get to see the money. It’s in bank account, we pay using credit card, and when statement comes, money from bank account is transferred to Credit Card company.
Credit cards( What to look for when applying for credit cards) will be used in all places, many small purchases charged to the card will add up to big sum. Usually, it’s $3 at McDonalds, $5 at Taco Bell, $7 for movie kind of things will add to huge amount. You will be surprised to see how you had spend when the statement comes. You will wonder, if I have a small part time job for 10 hours in a week that would give me some $200 - $300 to pay my groceries and part of living. That’s the phase, when every student will feel the value of money. Exhausting the bank balance money got from India (student loan, parents income, ..)
After 1st semester:
Now, you should have found a job( part time, or aid). Unless you control yourself with the excitement of getting a new job, your first pay check will be already spent before you realize.
Its very simple, for many months, you will be living within budget, controlling your spending. After, you get a job, first thing will be happy relaxed feeling. You will put some mental calculation, on ho much you will earn per week, per month, for 6 months. All long awaited dreams of having a nice digital camera, at least weekly once buffet at Indian Restaurant, Ipod, ... will come into mental picture. Next thing you know would be
- Buy Cell Phone order
- Dine out in restaurant daily for 1-2 weeks
- Visit deals2buy and edealinfo daily looking for camera and other deals
- New pair of shoes
- Ipod ...
So, that would be your first pay check money already spent.
Now having used to little lavish life style, it will be little difficult to go back to other life style. Next step would be to apply for new credit card, and what would happen at the end? Big balance in the credit cards, lots of balance transfers will go on...
How to avoid debts and some nice ways to keep students finances under control, will be in next post.
Related Links:
How to apply for students Credit Card
1 comments:
I guess that was a nice idea lifestrikes. Monitoring your spending habits can be of big help in keeping out of debt. There's an article about ways to Avoid Student Credit Card Debt which I think can open the minds of the students on how they can have a debt-free way of living.
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