In college, money is something most of us don’t have. With the cost of tuition, food, car insurance, phone bills, and rent there isn’t room for much else. Sure, there are some things that we have done to adjust. Our meals have consisted of those delicious 89 cent packages of ramen noodles, and we have gone to our school’s free events to save some cash while finding something fun to do. But even doing this we still end up getting that phone call from our Mom telling us to watch our account because it’s getting low. What else can we do? Or are we doomed to live a life living from paycheck to paycheck?
One of the top things our money goes to is food. It’s so simple to spend 5 dollars at McDonalds without realizing it. And all we have to do is swipe a card – so easy! But these guilty pleasures add up real quickly. To track your spending and see how much you really do spend, keep a log. For one week, write down everything you spend your money on. And at the end of the week you’ll be able to see where your money is going and where you can afford to take some cuts. A 4-dollar cup of coffee at Starbucks everyday can be almost 30 dollars a week. So pack a lunch when you know you’re going to be spending the whole day on campus, and that coffee you’re craving for so badly? Fill a mug from home – it will taste so much sweeter knowing you’re saving yourself about 25 dollars a week.
When that paycheck finally gets deposited into our checking account, our first thought might be “What should I spend this on?” Well, this would be the wrong thought. Whatever you make a week, you should put at least half of it into your savings account. Give yourself a budget. Say you make around 100 dollars a week – 50 dollars should go in your savings. This gives you 50 dollars to spend on whatever your heart desires. But when this 50 dollars runs out, that’s it. Don’t move money over from your savings into your checking – you would only be hurting yourself in the long run. Now remember, this does not include your bills. The money you have in your checking should be mainly for eating out, clothing, and other nonessentials.
Even if you’re not saving for some goal right now, it doesn’t mean that you shouldn’t be building up your savings account. You never know when some unexpected expense might come up, and even if one doesn’t, it’s still nice to have a cushion to fall back on. Because while you may not have a specific expense right now, you can already be starting to think about graduate school tuition, studying aboard, or even a down payment for a house. The lesson? Always be putting aside money in your savings – one day you will be so relieved that you did.
Lastly, you’re never too young to start owning stock. If you find yourself with some extra cash, invest. My nana bought me stock from Apple for graduation, and while I constantly want to sell it now so I can get the money, I know that if I wait there will be a greater reward. So instead of asking for that new iPhone for Christmas that you don’t really need but want so badly, ask for some stock. Years down the road, that money will hopefully make a large profit.