9 Ultimate Tips in Saving Students Need to Know

Fact: students do not have enough money all the times to satisfy their needs and luxuries. Parents give their children allowance almost as equal to their expenses and some of the students could not buy their favorite clothes, gadgets and other stuff. The real issue here is not the amount that their parents give; it is the proper analysis of costs and expenses and their regulations.

Here are some of the useful tips in saving:

1. Know your goal/s

Why are you saving? Do you want to buy a new phone or a new tablet? Or you just want to establish strong liquidity? 

We don't starve ourselves for nothing. Saving must be very meaningful.

2. Pay all your debts

Clear your liabilities in accordance to the order of their priorities. You don't want to earn enough money for a new phone then when you're about to buy a new one, someone knocks your door collecting your debt. How could you buy your new phone now?

Sometimes clearing your liabilities will take time and it may discourage you in saving. It's not necessary to pay all your debts before you can save. You can do both at the same time.

3.Make a Budget List

How often do your parents give you money? If they give you allowance for a month, make a schedule of your expenses for a month as well. Classify your expenses as Food, Fare/Gas, School Expenses. This shall be used on the next tip.

Remember also to update your budget regularly because there are seasons when you spend a lot or when you spend less.

4. Proper accounting of your expenses

List all your expenses and classify them as what you did in #3. It's good to list your expenses everyday. Do not understate your expenses; record even the dime you used to buy a piece of candy. At the end of the period, compare your actual expenses against your budget. Are you able to stick to your budget? Or you spent excessively. If you do, try to analyze your expenses.

My Management Accounting professor once told us that to control cost, you need to know its behavior. Check each item on your list and evaluate whether it is necessary or not. Check if you can substitute something cheaper. Check if you can omit that expense in the future. Say you spent $10 for your lunch. You can save up to $4 if you just dine in McDonald's.

You can try to commute instead of using your car. Gas is significantly more expensive than commuting especially when you are alone. You may also think of alternative route which will save you a few pennies.

But always remember this: before you cut your necessities, cut first your luxuries. It is ironic if you cut your meal expense and you constantly buy unnecessary and luxurious stuff.

5. Expenses is equal to your money income less savings

A basic economic equation states that savings is the residual amount of your money after deducting all your expenses. But an effective strategy is to play with the equation a little bit. Make it expenses is equal to your money less savings. When your parents give you your allowance for the month, segregate immediately your savings.

6. Deposit your savings in the bank

The more you see your money, them more urge you feel spending it. The best way not to get tempted is to take it away from your sight. One of the best options is to deposit it in the bank. If you have earned a pretty good amount, you can apply to a time-deposit which gives you more interest than the regular savings account.

7. Stay with frugal friends

Tell me who your friends are and I will tell who you are. If you are always with spendthrift friends who always invite you to barhopping, or invite you to expensive restaurants every day, you definitely cannot save. You are likely to absorb their attitude of spending lavishly. Stay with frugal friends when you are saving. You might want to consider to be in the library or in the park instead.

8. Keep a hectic schedule

Simple logic: when you are busy, you are focused to something and you are far from temptations. Instead of hanging out in a mall, why don't you finish your assignments or other school requirements? Why not review or study your lessons? When you are bored, you are likely to seek ways to reinvigorate yourself like going to arcades and karaoke hubs or to pig out.

9. Different jars of successful savings

Use different jars for different expenses. Have different wallets for your fare/gas and food and no matter what happened, do not spend the money inside these jars inappropriately. Say you spent a lot in your food. If you have already segregated your money for your fare/gas, you still have money to go to school.

Jars are also used when you are saving for two or more goals simultaneously. Jars represent your goals and you simply put and allocate your savings in these jars.

Conclusion

These are just some of the tips in saving. You can play with these tips and feel free to modify these in accordance to your needs, not lifestyle. After all, the bottom-line of this article is not all about presenting to you the exact ways of saving. It is all about the truth that saving comes with wise spending. They are always intertwined.