How to manage your finances while studying abroad? (2024)

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Studying abroad is undeniably thebest experience for students to get accustomed to different cultures, lifestyles, and to traverse through new lands and topographies. With an eye on reaching the next level in their career, today anyone with enough financial support or access to abroad education loans can get the opportunity to go for higher studies from a university of their choice.

Managing finances abroad can be a tricky task. However, you can educate yourself about responsibly managing your money early. After all, you would never want to drown yourself in debt and repayment issues.

Let’s discuss some of the top tips to manage your money while studying abroad.

Start planning in advance

The first and foremost tip to save funds for abroad is to look for the lowest education loan interest rate. The way to do this is to choose a loan scheme with collateral if possible. Other than that you can make a budgetary analysis through various financial tools available online which will provide you a basic idea of the expenses to plan accordingly. Studying abroad also includes the currency and with fluctuating rates, it is smart to compare the different forex rates available in the market.

Spend less once you’re there

During the first month when you are there, experiment with your food, conveyance, and other services to get a clear idea of how much the cost is for every need of yours. After one month, create a tentative budget including a buffer for emergency cases. Re-evaluate and resize the budget for the month. You can try cooking on your own. It will be a healthier option which will also save your money and you will not miss the flavors of home a lot. Pick an accommodation that is near to your college. It will not only save your time but will also cut down your travel time. Lyft and Ubers are nice options but can be expensive. Switch to public transport and if your room is in the vicinity, try cycling or walking.

Open an account in a local bank

With every use of a debit or credit card, an exchange fee or an international convenience fee is charged. It is a smart option to open a bank account in a local branch using documents such as your passport, local proof of address, and enrolment verification letter.

Look to earn while you learn

Saving money from your living expenses can manage your finances to a certain limit. To amp-up your finance management to the next level, you can look for other ways of income. If you are skilled at something or have a hidden talent, you can use it to earn pocket money. Indian students usually prefer taking part-time jobs such as research assistantship or teaching to earn extra income. Check your visa regulations first and look for income sources accordingly.

Consider the long-term approach

In general, you get a window of 5-7 years to repay your education loan. However, a better way out is to start paying it early. Prepaying the interest amount while studying can save you a lot of money in terms of total repayment made after the completion of tenure. A way to do it is by saving a portion of your part-time earnings. In a matter of time, these savings will form a sum that you can use to prepay your loan.

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