Often, students don’t realize the importance of saving money for the future. Young people also neglect to plan their budget ahead since the advantages of it are not obvious to them. If you also don’t understand why you should save money, keep reading the article to find it out!
First of all, savings can build confidence. It’s really hard to believe in yourself when you are just in your early 20s. However, it becomes easier when you are creating a buffer that makes you sure about your great future.
Secondly, if you put your money into a savings account, it will work for you. You can even earn compound interest, which means that you get interest not only on the money you put into the bank but also on the interest that has already summed up.
Most importantly, saving money can significantly decrease your financial stress. If you know that there is a certain amount of money in your bank account, you won’t worry about your expenses that much.
If now you are persuaded that saving money can make your life easier, learn about some smart techniques for it below!
1. Always use your student discount
Student ID is probably one of the best perks of studying at college. So take advantage of it! You can use this card in various retail stores, restaurants, and institutions. Visiting museums, galleries, and exhibitions is also less expensive with a student ID. What’s more, it allows you to get discounts on technology products from Apple, Microsoft, and Adobe. If you use them wisely, you can make some significant savings.
2. Prioritizing your needs
Make a list of things that are really important to have or to do for you. Identify what is necessary for your life and think about how to get it. Then focus on your needs and postpone unnecessary stuff that doesn’t bring real value to your life. Stop buying stuff that can wait until you save some money and purchase things that you can’t live without. Once you’ve decided that saving money is your most important goal for now, get help with homework to free up your time for a job. It’s really difficult to juggle studying and making money, so you should choose what to focus on. If you realize that saving up is vital to you, limit your expenses to necessary stuff and delegate your college assignments to work more.
3. Rent a shared flat
If you opt for a shared living space, you’ll save a significant amount of money. Living alone is quite expensive, especially if you don’t have a full-time well-paid job. But if you split your rent between a group of peers, you’ll pay three-four times less. Just imagine how much money you save per year in a shared apartment. Looks like the easiest and funniest saving strategy, doesn’t it?
4. Buy second hand
Such things as textbooks, furniture and clothes require the biggest expenses. They all drain the student budget so there is no money left for savings. To cut significant expenses, you can buy these things second-hand. On-campus communities usually have their own web platform where someone’s stuff is sold. Visit it every week to check if others are selling what you need. You can also resell everything you’ve bought once you stop using it.
5. Repair your possessions
Today, we all tend to replace broken things with new ones. However, to save money, it would be better to fix them. Instead of throwing things away, you can look after the possessions you already own and restore them when needed. Do your best to keep everything in working condition and stop buying new items without a real need. This approach is not only cost-efficient but also environmentally friendly.
6. Pursue a minimalist lifestyle
People say that adopting a minimalist mindset does wonders for their bank balance. Those who believe that owning fewer things can be comfortable have better chances to save substantial amounts of money. Although modern materialistic culture tries to convince us that we need more to feel happy, this is not really true. Inner satisfaction doesn’t come if you buy tons of unnecessary stuff. So don’t get sucked into the traps of consumerism, try to be more intentional about purchasing. If you analyze what is vital for you, you will be much more likely to spend less.
7. Learn to budget
One of the proven ways to save money is budgeting. College is a perfect place to start learning this method as you always have quick access to professors who can answer your questions about finances. Experts say that if you make an overview of your monthly income and expenditures, it becomes easier to optimize your spendings and start putting some money aside. To make this process more comfortable and effective, use some budgeting apps.
Although saving money might not be so easy for students, it’s worth your efforts. In fact, having a certain amount of money in your bank account can make your life much easier. Therefore, consider some of the techniques listed in this article and pick those that work best for you.
Paul Calderon is a financial expert and academic writer. He helps students complete their college assignments in Trade and Economy. Paul also organizes lectures and workshops where he teaches young people financial literacy.