Studying abroad is the target of many people. For this college plan, you must have made a lot of preparations, considering that you are studying in another country and you cannot go home at will to your hometown.
Choosing the right campus is the main point that cannot be ignored. This is very important, because this will relate to costs and various other things in your education period later.
In addition to campus selection, various matters regarding finances are certainly other important points that must be observed. During college you will need a lot of money.
It is important to calculate and ensure these various costs are met properly, so that the destination abroad can be achieved properly as well. You can focus on college matters only, without the need to think about various financial problems while there. Make sure to calculate all the costs of your education later correctly from the start.
8 Steps to Calculating Living Costs While Studying Abroad
The following are some easy steps you can take to calculate the cost of studying abroad:
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1. Check what facilities you get from campus
Before leaving for a foreign country, of course, you must have a choice of campus and be accepted there. You also need to find detailed information about this campus, including the various facilities that you will get while studying there.
Some campuses have special facilities for their students, especially for students who come from abroad. You have to check what facilities you can get from your campus later, for example: dormitory living facilities, free transportation, and others.
All of this will greatly affect the amount of costs that will be needed during college later. Look for the most accurate information and make sure you can get the facilities you need from your campus.
2. Check the cost of boarding / housing
If it turns out that your campus does not provide dormitory facilities, then you must be prepared to live in a boarding house. You need to find information about this boarding house from the start, so you won’t be confused or abandoned when you arrive at your destination country later.
In addition to living in a boarding house, you can also live alone or live with friends in an apartment. Decide where to live, to make it easier to find a place to live.
Start looking for rental prices for housing around campus or around town that will allow you to easily reach public transportation facilities.
Consider a place to live that is not too far from campus, so it doesn’t take a long time to travel. In addition to the place, also check the prices of other facilities, such as: electricity costs, laundry fees, cleaning fees, and others.
3. Availability and transportation costs
If you decide not to live around campus, then you should also consider the mode of transportation that will be used.
There are several important things to consider, such as; availability of schedules, costs, travel times and others. Calculate how much transportation costs will be needed during college carefully.
4. Meals and routine needs
This is the biggest cost and must be calculated carefully. Check how much food costs around your residence or campus. Calculate how much it will cost you to eat for the whole month.
In addition, you also have to calculate various other basic needs correctly, such as: the cost of toiletries, drinking water and others.
It will be much cheaper if you can adapt to local food which is generally sold cheaper, when compared to various Indonesian foods or ingredients.
5. Shopping for secondary needs
You also have to calculate the various secondary needs that will be needed during college. These needs vary, of course, the important and indeed needed, such as: learning equipment, clothes according to the seasons in the country, and others.
Entertainment costs such as watching movies can also be included in this one expense.
6. Hangout fee
While studying abroad, of course you need to socialize too. Socializing with friends like this will keep you comfortable and not lonely while studying in another country.
Although not often, this activity certainly needs to be done occasionally, at least once or twice a month. Also calculate the costs required for this activity.
7. Emergency fund
Do not forget to allocate some funds as an emergency fund. This is important, considering you will be living in a foreign country.
An emergency fund will help deal with various financial emergencies, such as running out of money in the third week and others. Make a budget for this regularly every month.
Calculate and Prepare for Study Abroad Exactly
For those who will soon go to study abroad, make sure you have prepared everything well. Calculate and make a financial budget for all your needs during college. Prepare these tuition fees well, so that your goal of studying abroad can run smoothly.
8. Choose investment products for fund development
After knowing the amount of funds that must be saved every month, now it’s your turn to choose the right investment product for fund development. According to Taufik, choose investment products according to the time period.
For fund development over 5 years, choose products such as fixed income mutual funds, mixed mutual funds, and equity funds.
Meanwhile, for medium-term investments ranging from 1-3 years, you can choose fixed income mutual funds. The placement of these funds can be done three years before the child enters college.
Then, for short-term fund placement, aka under 1 year, you can use money market mutual funds. This short-term placement of funds means that it is done a year before the child enters college.
In addition to paying attention to investment products, Taufik also reminded the importance of determining the return target. “There must be a return target, for example, 18-20% for equity funds. When you have reached this target, move the development funds to a fixed income mutual fund. However, at some point, it is also permissible to move 25% of the principal invested to minimize the risk of volatility in equity mutual funds,” explained Taufik. Currently, there are several systems and applications that monitor and provide notifications to investors when their investment returns have reached the target.
In conclusion, if you want to start studying abroad, you can start with good financial preparation. This starts with how you calculate the cost of living for a month when you study abroad. The first thing you can do is to choose the faculties and facilities they have, find and check the cost of housing, take into account transportation costs, food and necessities costs, shopping for secondary needs, hangout or vacation costs and emergency funds.