Some tips and advice to make saving easier
When I told my mom I was writing an article on budgeting for this week’s paper, she laughed and said “Oh my god.” Her reaction was justified, because I am not an exemplary saver or budgeter. However, I don’t think it is too late to change my ways, so I started doing some research. I asked my mom first, because I have always admired her aptitude for handling money. Her first piece of advice was to write down everything you spend money on for a month, to see where that money is going. Often times, people don’t realize how much getting a coffee everyday adds up, or how several cab rides downtown can amount to quite a substantial cost.
Don’t get discouraged if you can’t stick to your budget at first…
Once you know where your money is going, you can start making a budget. Some banks have online budget calculators where your wages and income can be added, and your expenses removed, generating a surplus or deficit in a neat graph. You can then look at your expenses and see where you can cut costs in order to break even.
Now you can start to make your budget. Begin by dividing your costs between fixed and variable. Fixed costs are things that don’t change monthly, like your rent. These typically can’t be changed or cut back without more thought. To budget, you look at your variables. Variables will change from month-to-month, and they include items like groceries, entertainment, and nights out. You can then divide these into wants and needs. By spending less on wants and more on needs, you can stay on track. Pick a maximum amount you can spend on these things and stick to it.
Making a budget seems easy enough; sticking to it may be a bigger problem, so here is a compilation of tips to help students save:
Use online banking to keep track of spending
Pay attention to sales when grocery shopping – stock up when items are on sale, or buy in bulk and freeze your meat and bread until you are ready to use it.
Bring your own food and drinks – pack lots of snacks and lunches when you are at school, and make coffee or tea at home
Look for free activities – such as, public skating downtown or free brewery tours, to cut down on entertainment expenses.
Only bring cash out, and leave your cards at home – not only are the ATMs downtown infamous for charging hefty withdrawal fees, when your cash is gone, you will have no choice but to stop spending money.
Remember that you have to pay back your loans at some point – your future self might not be very happy with you squandering it willy-nilly.
Even small changes can make a big difference, and I do believe that every dollar counts when students generally have low incomes and high costs to pay. Don’t get discouraged if you can’t stick to your budget at first – these things take time. If you do go over, try not to react by just spending more money just because you have already blown your budget for the month. Make small changes now, and I can almost guarantee you won’t regret them in the long run.