All You Need to Know About Creating a Study Abroad Budget

Pursuing the dream of studying abroad can be exciting as well as overwhelming. It gives students numerous opportunities and, at the same time, looks great on resume. The chance of going abroad to prestigious universities not only boosts confidence but also opens several doors, thereby enhancing networking. But many students step back and let go of their dream due to the fear of study abroad budgeting. They get confused as to how much they should save and spend. Managing finances requires proper financial planning, and every aspect must be considered. Many times, students struggle as their budget overpowers their expenses. Let's look at how students can effectively plan their finances and live the life they have always dreamt of.

Why Is Financial Planning for Studying Abroad Essential?

Planning finances and living life economically is the best quality of a working person. As several expenses cannot be ignored, therefore, everyone should save some amount for unexpected situations. Financial planning becomes necessary for students abroad as they have no family support. When you live alone in an unknown country, money is the only thing that can help you survive and face critical situations. Here are some reasons planning for study abroad expenses are necessary for students.

Keeps Them Aware of Their Cash Flows

Keeping track of cash inflows and outflows is a helpful practice everyone should follow. When students start planning their finances, this helps them follow their set monthly budget and not go overboard. With this planning, they can verify the monthly cash spent on expenses.

Helps in Building the Investment Portfolio

If you know how much money you are saving monthly, you can think of investments. But investing them in fruitful and profitable ventures is also another talent. Financial planning keeps you informed and also helps you track your savings. You will also end up gaining knowledge on investments.

Assists in Avoiding Extra Expenses

Expenses can go on the higher side anytime if you avoid planning for study abroad expenses. The planning helps you stay within budget and avoid unnecessary expenses. When students spend without a budget, they do not think of affordable options; this is where they suffer.

Factors Determining the Financial Budget Abroad

Students often have the question of what factors they should consider while creating a study abroad budget. To start with the planning, students must know various factors that can affect their expenses. These can differ from student to student, but some of the common factors to consider are mentioned below: 

Routinal Expenses

Start by calculating the average amount that you will be spending daily. This can include your travel, meals and grocery expenses. Try to spend on the needed items and encourage buying in small portions.

Month-Wise Expenses

There are several payments that you have to make every month. These include rent, water, electricity, internet etc. You must also consider the insurance premiums, EMIs or any rented furniture payments. These cannot be avoided; therefore, reduce your daily expenses to the minimum.

College/University Expenses 

The expenses incurred in the university depend on the type of course and university you have opted for. There are various expenses here, including tuition, library, insurance, societies, or any other subscription. This also includes semester-wise or annual university fees.

Other Expenses

Life can be quite uncertain at times, and there are various unforeseen expenses. Students must be prepared for such situations as they might demand massive amounts. Examples of these include health emergencies, accidents, social university events etc. Therefore, students must keep aside an amount every month for this.

How Can Students Plan Their Study Abroad Budgeting

Planning finances in a way that helps students make their stay abroad easy is essential. Several ways can help students plan and work accordingly. Let's have a look at some of them: 

Effective Research

Students must focus on creating an expense plan in accordance with goals. Before starting planning, you must do thorough research and have accurate information. There are various institutions and counselors who can help you productively plan your finances.

Our experts at Gradding have proficient knowledge, which can help you in planning and managing study abroad finances.

Plan Your Budget

Creating a budget according to your requirements and goals is pretty essential. You must be clear on how much you spend monthly and categorize priorities. Plan weekly and monthly budgets to help you save money at the year's end. When you have a limited amount, you also get clarity on your spending, which helps you save more money.

Consider Counsellors 

Getting help from a third party to manage your finances is a wonderful idea. All the information related to your goals is kept confidential. You can book trial sessions with Gradding professionals and get expert guidance on how to go further with study abroad budgeting.

Try Self-Funding

Self-funding is a fruitful option as you are not required to give any extra money in the form of interest. Some self-funding options to consider are FD, RD, SIPs, and education loans which help them accumulate the university and travel costs. Students must consult their families and try to fund as much as possible.

Apply for Scholarships 

Scholarships are a trusted and proven method to assist students abroad financially. Universities offer various scholarships for study abroad, which students can avail of by passing exams. You can apply for several scholarships and grants and get the financial benefit. Nowadays, there are various scholarships that the Government of India sponsors with a cause to not deprive any students of the right to education. If you work hard for one, you can get an entire deduction in your university fees.

Education Loans

An education loan is another effective way of getting financial assistance for education abroad. This provides help to students with the tuition fees and other high charges demanded by the universities. Today, all banks provide education loans to students at an affordable interest rate of 7%. In order to approve their loans, students must fulfil the basic requirements. The Government of India has started various schemes that students can benefit from.

Secure Part-time Jobs

Doing part jobs helps students immensely minimize study abroad expenses and maintain their budget. Counsellors can help you by providing information on which part-time jobs suit you. You can search on your own, keeping in mind your interests and hobbies. This will help you earn an extra monthly amount and relax your budget a bit. But this does not mean you spend extravagantly; you need to stick to the budget to survive in foreign countries.

Few Tips for Budgeting While Studying Abroad

There are always some tips and tricks to make things easier. Students can refer to and apply these hacks to make their stay more manageable and stress-free. Some of them include: 

Avoid Expensive Cities: If you choose to go to a university in an expensive location, your budget will definitely be messed up. Everyone has their own budget and spending capacity; stick to yours. Don't feel left out if you choose a small city; you can easily travel by bus or train and experience the life of big cities nearby. 

• Look for Homestays: Spending much money on off-campus accommodation is never a good option. Try to enrol on affordable on-campus stays. If you do not get one, every city has inexpensive homestays. You might have to compromise on the facilities, but you'll have access to the basic ones.

• Take Service Provider's Help: Nowadays, some websites help students accomplish their study abroad journey. We at Gradding can help you from choosing the university to finally stepping into the campus. We do not leave our students after they go abroad. Therefore, try taking help from our experts and create an affordable financial budget.

• Ask for Student Discounts: Deductions or discounts are a great way to saving money for study abroad. Carry your student id every time with you inside and outside the campus. You can avail of discounts at coffee shops, museums, transportation, events, movies, libraries etc. These can help you stick to your budget and save vast amounts of money.

• Use Public Transportation: Several public services are available to go from one place to another. Most students abroad prefer going to places by walking as transportation abroad exceeds the monthly budget. Students can also make use of bicycles provided at low rents. This will encourage you to be physically active and in managing study abroad finances.

Don't Let Your Budget Overpower Your Dream

Managing and keeping track of finances abroad can be pretty stressful and challenging. But for affordable living, you have to choose the option of planning your finances. Tips and hacks can help you effectively manage them and help you save some extra cash.

If you are struggling with study abroad budgeting, we are here to help you. Gradding is an all-inclusive platform allowing you to connect with experts, openly share your goals, and relish your study abroad journey. We provide you with all the services that are identified as hurdles when students dream of pursuing an overseas education. We help students by providing them with financial as well as personal advice. If students, after going to the country, face problems, they can connect with us anytime. We will happily provide them with an easy solution for managing study abroad finances.

So what are you waiting for? Connect with our experts now and kick-start your adventurous yet exciting journey to your dream university.