How to Build Your Savings in College
Track your spending., At the end of the month, look carefully at what you wrote., In a separate paper, write down all your income., Write down your living expenses., If your income cannot support your basic living expenses you need to make more...
Step-by-Step Guide
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Step 1: Track your spending.
Before making any changes, write down all your spendings (in a planner, notebook or whatever you want).
Write down what you bought, how much it cost and why you bought it.
Also write down any income you come across. -
Step 2: At the end of the month
Think hard about your spending habits.
Deep down you know where you should cut in order to save, but we'll tackle that next. , From work or an allowance from your parents, scholarships, all of it! The money you're allowed to spend on a credit card does not count as income and it's not spendable money.
Save credit cards for emergencies.
If you'll be tempted to use it before that, try some drastic measures like freezing it in a giant ice cube or give it to someone you trust for keeping but who wouldn't give it back without explanation (maybe mom?) , Maybe arrange them by categories if you'd like.
Things like gas, hygiene products, food, water bills and such fit into this category.
If you add them up and the total is less than your income, you're in the clear, for now. , Resorting to credit throughout college to pay for basic needs is a big red flag and it means you're in trouble.
Try all you can to find another steady source of income like a job, applying for financial aid or doing odd jobs like tutoring or babysitting.
Hopefully your basic expenses are covered and you can move in to the next step. , These are those buys you wish you could keep but can cut out if drastic measures are needed to keep you out of debt.
Things like new clothes, a latte every morning and dinners out are little luxuries you may not be able to afford.
If the total, added to your living expenses is higher than your income this is where you need to cut, in order to live comfortably and still have some money left at the end of the month. , Consider how much money you have left in your budget to put aside to savings.
Do the math for how much you save each year, with and without the unnecessary spending.
For example, if you have a latte a day, you can save 20$ each month.
If you only have one a week, you can save 50$ or more depending on where you live and what lattes cost. , As soon as you get your income, set your savings aside, in an envelope or a savings account.
Do not resort to this money for spending unless you have no choice.
This means needing money for a new calculator because your died on you; fabulous new shoes don't count. , Set money aside and pay them off.
Search for ways to cut these expenses if possible like a cheaper texting plan or taking shorter baths.
The internet is riddled with saving tips. , Divide it by the number of week or days you must go without needing more.
Say, if you have 100$ left and must live from them a month before you get more income, you have 25$ a week.
Stick to that, no matter what.
If by the end of the week you've only spent 20$, put the rest in a jar, separated from your savings. , Like someone's birthday or needing a new notebook.
When this jar reaches a reasonable amount (you decide), use some of the money to treat yourself, maybe to a fancy dinner or shopping for a new item you've been coveting.
Treating yourself encourages further saving and prevents spending sprees.
Also, you can add jar money to your saving when you have a nearly full jar. , Keep the money with you (and only tap into in in an emergency) or putting it in the bank, earning interest in a savings account, separate from your checking account.
In both situations, try to keep at least one (ideally three) month(s) expenses on you and only after that start saving for when college is over.
A sudden emergency like a job loss or needing a new computer should not have to destroy your saving efforts. , This will make it so you have more money to put in your jar at the end of the week.
Instead of going out to dinner, have a potluck with your friends, or a movie marathon night.
Ask some girl friends over and have a spa night much cheaper than actually going to the spa.
The choices are endless to have fun without spending money -
Step 3: look carefully at what you wrote.
-
Step 4: In a separate paper
-
Step 5: write down all your income.
-
Step 6: Write down your living expenses.
-
Step 7: If your income cannot support your basic living expenses you need to make more money!
-
Step 8: Write down your "necessary" expenses.
-
Step 9: Even if you can afford your personal luxuries
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Step 10: think about cutting back.
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Step 11: Once you've decided on how much you'll save
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Step 12: act on it.
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Step 13: Every month
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Step 14: after you put your savings aside
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Step 15: tackle your fixed expenses.
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Step 16: Now you're left with spendable money.
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Step 17: The jar can get you through unforeseen small expenses.
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Step 18: With the savings you put aside
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Step 19: you can go two ways.
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Step 20: Keep substituting spending habits for almost free ones
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Step 21: to save more.
Detailed Guide
Before making any changes, write down all your spendings (in a planner, notebook or whatever you want).
Write down what you bought, how much it cost and why you bought it.
Also write down any income you come across.
Think hard about your spending habits.
Deep down you know where you should cut in order to save, but we'll tackle that next. , From work or an allowance from your parents, scholarships, all of it! The money you're allowed to spend on a credit card does not count as income and it's not spendable money.
Save credit cards for emergencies.
If you'll be tempted to use it before that, try some drastic measures like freezing it in a giant ice cube or give it to someone you trust for keeping but who wouldn't give it back without explanation (maybe mom?) , Maybe arrange them by categories if you'd like.
Things like gas, hygiene products, food, water bills and such fit into this category.
If you add them up and the total is less than your income, you're in the clear, for now. , Resorting to credit throughout college to pay for basic needs is a big red flag and it means you're in trouble.
Try all you can to find another steady source of income like a job, applying for financial aid or doing odd jobs like tutoring or babysitting.
Hopefully your basic expenses are covered and you can move in to the next step. , These are those buys you wish you could keep but can cut out if drastic measures are needed to keep you out of debt.
Things like new clothes, a latte every morning and dinners out are little luxuries you may not be able to afford.
If the total, added to your living expenses is higher than your income this is where you need to cut, in order to live comfortably and still have some money left at the end of the month. , Consider how much money you have left in your budget to put aside to savings.
Do the math for how much you save each year, with and without the unnecessary spending.
For example, if you have a latte a day, you can save 20$ each month.
If you only have one a week, you can save 50$ or more depending on where you live and what lattes cost. , As soon as you get your income, set your savings aside, in an envelope or a savings account.
Do not resort to this money for spending unless you have no choice.
This means needing money for a new calculator because your died on you; fabulous new shoes don't count. , Set money aside and pay them off.
Search for ways to cut these expenses if possible like a cheaper texting plan or taking shorter baths.
The internet is riddled with saving tips. , Divide it by the number of week or days you must go without needing more.
Say, if you have 100$ left and must live from them a month before you get more income, you have 25$ a week.
Stick to that, no matter what.
If by the end of the week you've only spent 20$, put the rest in a jar, separated from your savings. , Like someone's birthday or needing a new notebook.
When this jar reaches a reasonable amount (you decide), use some of the money to treat yourself, maybe to a fancy dinner or shopping for a new item you've been coveting.
Treating yourself encourages further saving and prevents spending sprees.
Also, you can add jar money to your saving when you have a nearly full jar. , Keep the money with you (and only tap into in in an emergency) or putting it in the bank, earning interest in a savings account, separate from your checking account.
In both situations, try to keep at least one (ideally three) month(s) expenses on you and only after that start saving for when college is over.
A sudden emergency like a job loss or needing a new computer should not have to destroy your saving efforts. , This will make it so you have more money to put in your jar at the end of the week.
Instead of going out to dinner, have a potluck with your friends, or a movie marathon night.
Ask some girl friends over and have a spa night much cheaper than actually going to the spa.
The choices are endless to have fun without spending money
About the Author
Raymond Ramos
Professional writer focused on creating easy-to-follow pet care tutorials.
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