How to Budget for Your Commerce Education Effectively

The commerce field is often considered highly lucrative in India. In 2025, the employability of commerce graduates is around 55%. You can work in the finance and accounting sector and hold positions such as:

• Investment banker (salary up to Rs. 13.7 lakhs p.a.)
• Actuary (salary up to Rs. 12 lakhs p.a.)
• Chartered accountant (salary up to Rs. 10.5 lakhs p.a.)
• Business analyst (earn up to Rs. 7 lakhs p.a.) 

However, most commerce courses are expensive and require you to make significant monetary investments. For example, the fees for pursuing an MBA (Finance) from premier institutes like the Indian Institutes of Management (IIMs) can range from Rs. 17 lakhs to Rs. 35 lakhs for the entire program.

Thus, as a commerce student, you must make smart budgets. It will help you to:

• Save for tuition fees, books, and other study materials.
• Track where your money goes and avoid unnecessary expenses.
• Gain better control over your finances.

Moreover, since commerce involves financial knowledge, budgeting gives you practical experience in handling money. In this article, let’s check out a structured approach for budgeting that you can follow.

Start by understanding your financial situation

As a first step, you must identify your income sources. Start by listing all the ways you receive money. This helps you understand how much you have to spend. Your income sources may include:

• Allowances: Money given by your parents or guardians.
• Part-time jobs/ Freelancing: If you work while studying, include your earnings.

• Scholarships: If you receive any scholarships or financial aid, count that as income.
• Investments/ savings: If you have money saved or made small investments, factor those in.

Once you total all these, you will get an idea of your financial baseline. This total represents how much money you have available each month or semester.

Track your expenses

Once you know your baseline, the next step is to document everything you spend money on. Ideally, keep track of both small and big expenses, such as:

By categorising your expenses, you can understand where your money goes and where you can cut back (if needed).

Create a comprehensive budget

Now that you understand your financial situation, the next step is to create a comprehensive budget to manage your expenses. Here’s how you can do it step by step:

Design your budget using the 50-30-20 Rule

This budgeting rule is a simple way to manage your money. It divides your income into three categories:

Category I: 50% for essential expenses (Needs)

These are necessary expenses that you must pay to continue your studies and daily life. By now, you must have already identified your needs. From your total income, you can allocate 50% to this category. 

For example, if your total monthly income is Rs. 20,000, then Rs. 10,000 (50%) should go towards these essential expenses.

Category II: 30% for discretionary spending (Wants)

These are non-essential expenses and are mostly for your enjoyment. Allocate 0% of your total income towards this category. 

For example, from a Rs. 20,000 income, Rs. 6,000 (30%) can be used for entertainment and personal spending.

Category III: 20% for savings and debt repayment

Allocate 20% of your total income for your future financial security. You can achieve this by:

• Saving for emergencies, future studies (MBA, certifications), or investments.

• Repaying any education loans or borrowings
• Investing in a simple savings account, mutual funds, or fixed deposits.

For example, with a Rs. 20,000 income, Rs. 4,000 (20%) should go into savings or repaying any loans.

Look for part-time work and internships

By taking up a part-time job or internship, you can earn extra income while gaining experience in your field. Ideally, you should apply for internships related to your commerce field, such as:

• CA articleship training

• Finance internships (Stock market, investment firms)
• Marketing or sales internships (Business development roles)

Alternatively, to earn better, you can go after part-time jobs, such as:

• Retail or cashier jobs
• Data entry or customer support
• Library or admin assistant jobs at your college

Additionally, if you prefer flexible work, freelancing can be a great option. Some areas to explore are content writing, graphic designing, and social media management. 

Managing your finances wisely also means avoiding unnecessary debt and regularly reviewing your budget. Here’s how you can do it effectively:

Try to avoid debt accumulation

As a student, you might find debt lucrative. But remember, it can increase your financial burden and hurt your savings. Ideally, you should use debit cards or cash for daily expenses. This helps you avoid spending more than you can afford. 

If you must use a credit card, pay the full bill on time to avoid interest charges.

As a tip, look for a student-friendly credit card with low interest and no annual fees.

Also, take educational loans only if absolutely necessary. Always take loans from leading banks and NBFCs and compare interest rates and repayment terms before applying for any loan. If you have an existing loan, try to pay it off early to reduce interest costs.

Conclusion

Through budgeting, you can smartly manage your expenses and save enough money to fund your education. To do so, you can follow a structured approach, where you:

• Track your income and expenses
• Use the 50-30-20 rule
• Explore additional income sources (part-time work, freelancing, and internships). 

Additionally, to save more and enjoy heavy discounts you can switch to online marketplaces for purchasing books, laptops, and other educational materials. Also, avoid unnecessary debt and regularly review your budget.