Sustainable financial decision making
Has a friend ever asked you to do something and you’ve had to say no because you just couldn’t afford it? Sometimes, it’s an obvious situation: “No, I can’t go to Europe with you, because I simply don’t have the money for it.” But other times, we make poor financial decisions because the answer isn’t so cut-and-dry.
How many times have you been with friends who all wanted to go see a movie, or go grab a meal, or even go to the bar when you just couldn’t afford it? Some people will opt out of going, but often, we’ll put it on our credit cards or withdraw from our savings. The problem is that overspending is a legitimate issue that we’re masking by telling ourselves that it’s just this one instance, or that we maybe have money coming that will pay for the movie, or the meal, or our drinks for the night.
As students, we need to use our limited funds in a financially savvy and proactive way, so that the end of the semester or the end of the pay period isn’t a time to be scrambling, but rather a time to be continuing with the lifestyle you can afford. The way we learn to spend our money now will carry forward into our future lives when we have real jobs and families and mortgages. It’s important that we have spending habits that keep us out of the red (habits which do not include ignoring student debts that may accumulate).
Making the decision to say no to overspending comes with lifestyle changes that you just cannot avoid. Recognize the difference between necessity and luxury. For many students, eating out is a regular occurrence. It’s a way to be social with friends, and at the same time it provides you with the nutrition that you need to carry on with your day. It’s easy to say, “Well, I need to eat anyways, so we might as well go out,” or, “I don’t have groceries, so I’d have to grab something anyways.” But eating out isn’t a necessity. It’s a luxury that many students are so used to that it becomes second nature to grab something at school rather than bring a lunch, or order a pizza when you’re studying instead of having something in the crock-pot ready for you when you need it. The reality of the situation is that this could have been avoided if you had taken some proactive steps to changing your lifestyle.
Next time you make plans with a friend, decide what you’re going to do. A lot of the time, we’ll make plans with someone and say, “Are you free Friday? Great, well let’s do something.” Define something. Plan ahead. If you’re going to be together over a meal time, consider entertaining one another at your houses – and for this, make sure you take turns entertaining, as it’s not fair to have the same person always pay – or go on a grocery store trip together to get ingredients so you can make something together. It’s a less expensive alternative, and making something together is always a great bonding experience.
When you’re planning your hang out, consider other options. If you two normally go to the theatre to see a movie, consider renting something or opt for a Netflix date. Also, don’t forget to explore one another’s DVD collections, as it’s a great way to showcase some of your favourite movies.
In terms of exciting things to do in Guelph, there are plenty of free and really inexpensive options (especially on weekends). Check online for events in the area, or even go through the Ontarion’s list of 101 things to do before you graduate. Opt for creating your fun instead of buying it.
Ultimately, to cut back on your spending you need to include your friends in lifestyle changes. If you are feeling the pinch financially, there’s a chance your friends will want or need to cut back on their spending as well. There is power in numbers, so saying no to a group of friends is always a lot easier if there are more of you who are being financially responsible.