Making it to your next paycheque
As students, a lot of us change jobs a few times over our university career. While the idea of not quitting your job before you have a new one is a good rule of thumb, sometimes you’ll have a gap between jobs, or the pay structures don’t match up flawlessly. For students living paycheque-to-paycheque, there can be an awkward period between pays where you just don’t have the right amount of money to make it to the next pay.
Find out how much you have in your savings and act accordingly.
Amy A., a grad student in the first year of her Masters recalls what it was like to live when she didn’t receive the money she was expecting: “Having my scholarship payments delayed was incredibly frustrating. I was lucky to have some savings put aside to cover my expenses, but I hadn’t expected to dip into them so soon into grad school. I had to stop spending on things I didn’t absolutely need, like eating out or getting those new boots I wanted. I also found myself worrying about money more than I had been before, which was an added stress I had to learn to live with while also being a grad student.”
Sometimes, like Amy, you might not be aware that you aren’t getting money right away. So many students have issues with OSAP payments that were just non-existent in their bank accounts; sometimes the paperwork you sent to your bank doesn’t get processed on time, and all of a sudden, you’re unable to access your student line of credit, and you’re paralyzed with the inability to pay for life.
At this time, you should slow your spending until you receive your money. Don’t spend money you don’t have (with the help of your credit card), and avoid spending what money you have on reserve. Think of your savings as emergency money. It’s like when your parents gave you a credit card that you were supposed to use only for emergencies, except this time you’re not going to go out and buy Starbucks with it.
Emergencies in the situation of a poor student typically include food, rent, and transportation to-and-from school and/or work. At this time, it’s important to utilize the resources made available to you on campus. We have an on-campus food bank for you to make sure you are able to eat – if you’re suffering financially, it’s there to help you, so don’t be afraid to use it.
If you’re aware that you’ll be pausing your income, (i.e. leaving your job), it’s a good idea to start saving as much as you can immediately. Think of yourself as an animal that is about to hibernate over the winter. Hoard as much of your money as you can so that, in case of an unforeseen gap in between getting paid from your old job and your new job, you’re prepared with some extra funds to help get you through.
When getting a new job, it’s time to revamp your budget. Take another look at your Excel file (or create one if you’ve been living without one), and update your expenses. Make sure you have a good idea of all of the money you’ll be needing until your next pay, and check your balance to make sure you have enough. Find out how much you have in your savings and act accordingly.
Remember that a lot of students have problems making it through transition periods, so save, budget accordingly, and freeze your spending. Do the best you can to give yourself an advantage, but also remember that there are resources available to help you during rough periods – it’s up to you to seek them out and do your part to perfect being perpetually poor.