what is the best way to save money?
ByI am college and dont make to much money but would like to save a little. Any help would be appreciated.
There are some excellent resources out there for saving money on a budget.
Lucy Lazarony with Bankrate.com has some excellent advice tailored specifically for college students:
1. Track it
Track your spending for two to four weeks to find out where your money is going. Are four trips to Starbucks a week really necessary?
"They don’t realize how much they spend on little things," says Vickie Hampton, a financial planner and an associate professor at Texas Tech University in Lubbuck, Texas. "That’s the most common revelation."
Mark Oleson, director of a financial counseling clinic at Iowa State University, adds, "Usually, just by tracking expenses, you’ll start to curb expenses."
2. Get a plan
The best way to manage your money over the course of a semester is to sit down and map out a budget. List sources of income such as scholarships, loans, money from summer jobs and cash from your parents as well as expenses, such as tuition, books and groceries.
3. Good time money
If you know you need to buy a new CD or go to concert or a party every week, make room for that in your budget.
"You need some entertainment," Hampton says. "A student is going to get really burned out if you don’t do anything fun."
4. Pace yourself
If you spend, spend, spend at the beginning of the semester, you could be tapped out later. Give yourself a spending limit for each week. Stick to it and you won’t have to eat macaroni-and-cheese every day in December.
5. Go easy with the credit cards
"One quick way to spend beyond your means is to charge it," says Mallary Tytel, president of Healthy Workplaces.
Use credit cards sparingly. Once you get into the habit of reaching for a Visa, it can be hard to stop.
"I saw a student pick up a bag of chips and charge it," Tytel says.
Who wants to pay interest on a bag of Doritos?
6. Set your own credit line
"Just because you have a credit card with a $2,000 credit line doesn’t mean you have to spend $2,000," DiSpirito says. "If you know you can only pay back $500, then just spend that."
Afraid you’ll spend as long as there’s room on the card? Call your credit card company and request your credit limit be lowered. Keep at it. Card companies will try boost up your credit lines so you spend more. Tell them "no" each time they try.
7. Get real
You can do what you want, but you can’t do everything you want. You’re going to have to make some choices. Whatever you choose is going to cost some money. Be realistic.
"You need to understand you can’t have everything and you have to understand there are consequences," Tytel says. "At some point there needs to be a reality check in terms of what things cost. Most kids have no idea."
8. Stuff happens
If you bust your budget on something you really, really want to do this week, make up for it next week.
If you find that you must go out to dinner and a movie one week, spend the money; be satifisfied with the decision, and commit to staying home, eating at home and not making any other purchases the following week.
9. Look ahead
Whether it’s a road trip with friends or an auto insurance bill, if you know a big expense is coming, start putting some money aside to pay for it.
"It’s a lot easier to set aside $50 every month than to come up with $300 when the bill is due," Oleson says.
10. Get in touch with your roomie
Contact your roommate before the semester starts and divvy up expenses. Chat about who will bring a refrigerator and who will bring a microwave.
This way you avoid duplicating purchases and excess spending, but will still have all the conveniences to make college life easier.
11. Spread it out
"Most of the big expenses are at the beginning of the school year," Tytel says. "Buy books as you need them. That will spread out expenses."
Don’t forget to check out prices from online bookstores. They may give you a better deal than the campus bookstore. Buy used books whenever possible.
12. Ask for help when you need it
"It’s very difficult to say ‘I’m in trouble and I need $2,000′ or ‘I spent my student loan money,’ " Tytel says.
Screw up some courage and phone home. The longer you put it off, the worse things get.
Hope this helps!
Newarview
11 Comments
May 31st, 2010 at 5:08 am
a bank account
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hey why not
May 31st, 2010 at 5:24 am
Start an IRA account
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May 31st, 2010 at 6:05 am
don’t spend it
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May 31st, 2010 at 6:10 am
the best way to save only spend money one bare esentails and dont carry cash put it into an account far away from your pocket, really its about self control……….goodluck
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May 31st, 2010 at 6:54 am
Take my advise,
Do not buy a car; Do not get married early; Do not often go out with friends of yours.
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May 31st, 2010 at 7:10 am
Cut out the unnecessary stuff. Don’t eat out too often. Buy groceries when you’re not hungry, buy bulk, buy only when things are on sale, take lunch to work/school. Make sure your house is well-insulated, use coupons, take public transportation, or ride a bicycle. All the little things save you money.
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May 31st, 2010 at 7:41 am
Go to your local credit union or bank and set up what is called a Christmas Club account. Whatever money you put into it (I would suggest anywhere from $10 to $20 per month) you cannot withdraw until Christmas. It forces you to save and not spend.
You’ll end up having money towards the end of the calendar year around Christmas which is great just because of the holiday itself. Plus, you could also use it to pay off a lingering credit card bill. Or you could use it as down payment on a really great used car for transportation.
Awww… the many uses of saved money.
Just don’t blow it all on booze. Alcohol is NOT practical. Just think that college books for spring semester 2007 ARE practical.
Good luck!
References :
May 31st, 2010 at 7:49 am
There are some excellent resources out there for saving money on a budget.
Lucy Lazarony with Bankrate.com has some excellent advice tailored specifically for college students:
1. Track it
Track your spending for two to four weeks to find out where your money is going. Are four trips to Starbucks a week really necessary?
"They don’t realize how much they spend on little things," says Vickie Hampton, a financial planner and an associate professor at Texas Tech University in Lubbuck, Texas. "That’s the most common revelation."
Mark Oleson, director of a financial counseling clinic at Iowa State University, adds, "Usually, just by tracking expenses, you’ll start to curb expenses."
2. Get a plan
The best way to manage your money over the course of a semester is to sit down and map out a budget. List sources of income such as scholarships, loans, money from summer jobs and cash from your parents as well as expenses, such as tuition, books and groceries.
3. Good time money
If you know you need to buy a new CD or go to concert or a party every week, make room for that in your budget.
"You need some entertainment," Hampton says. "A student is going to get really burned out if you don’t do anything fun."
4. Pace yourself
If you spend, spend, spend at the beginning of the semester, you could be tapped out later. Give yourself a spending limit for each week. Stick to it and you won’t have to eat macaroni-and-cheese every day in December.
5. Go easy with the credit cards
"One quick way to spend beyond your means is to charge it," says Mallary Tytel, president of Healthy Workplaces.
Use credit cards sparingly. Once you get into the habit of reaching for a Visa, it can be hard to stop.
"I saw a student pick up a bag of chips and charge it," Tytel says.
Who wants to pay interest on a bag of Doritos?
6. Set your own credit line
"Just because you have a credit card with a $2,000 credit line doesn’t mean you have to spend $2,000," DiSpirito says. "If you know you can only pay back $500, then just spend that."
Afraid you’ll spend as long as there’s room on the card? Call your credit card company and request your credit limit be lowered. Keep at it. Card companies will try boost up your credit lines so you spend more. Tell them "no" each time they try.
7. Get real
You can do what you want, but you can’t do everything you want. You’re going to have to make some choices. Whatever you choose is going to cost some money. Be realistic.
"You need to understand you can’t have everything and you have to understand there are consequences," Tytel says. "At some point there needs to be a reality check in terms of what things cost. Most kids have no idea."
8. Stuff happens
If you bust your budget on something you really, really want to do this week, make up for it next week.
If you find that you must go out to dinner and a movie one week, spend the money; be satifisfied with the decision, and commit to staying home, eating at home and not making any other purchases the following week.
9. Look ahead
Whether it’s a road trip with friends or an auto insurance bill, if you know a big expense is coming, start putting some money aside to pay for it.
"It’s a lot easier to set aside $50 every month than to come up with $300 when the bill is due," Oleson says.
10. Get in touch with your roomie
Contact your roommate before the semester starts and divvy up expenses. Chat about who will bring a refrigerator and who will bring a microwave.
This way you avoid duplicating purchases and excess spending, but will still have all the conveniences to make college life easier.
11. Spread it out
"Most of the big expenses are at the beginning of the school year," Tytel says. "Buy books as you need them. That will spread out expenses."
Don’t forget to check out prices from online bookstores. They may give you a better deal than the campus bookstore. Buy used books whenever possible.
12. Ask for help when you need it
"It’s very difficult to say ‘I’m in trouble and I need $2,000′ or ‘I spent my student loan money,’ " Tytel says.
Screw up some courage and phone home. The longer you put it off, the worse things get.
Hope this helps!
Newarview
References :
http://www.bankrate.com/brm/news/sav/20000814b.asp
May 31st, 2010 at 8:33 am
I think it is mainly about automating savings and cutting down on expenses.
If you do get a regular paycheck, try to put it all in the bank at once (direct deposit is great).
It is easy to spend lots of money on vending machines, drinking, etc. Pick what you want to spend it on and stop the other spending.
If you don’t know where its going, try to write down what you get and where you spend it. After doing this for a month, you’ll be shocked at all the little places your money is going.
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May 31st, 2010 at 8:54 am
It is very simple. Spend less than you earn.
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May 31st, 2010 at 9:08 am
The easiest way to accomplish this is to set a $50/month investment in mutual fund, and have 10 years+ time horizon, do not even try to withdraw anything. In Finance, it is called "pay yourself first". Pretend this amount of money you donate to the local charities.
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2.) Buy Exxon Mobil or Conoco Phillips through equiserve.com or melloninvestor.com for zero commission. You will be glad after 5 years.
3.) If you want to play safe and have 20 years time horizon, buy TRowe Price’s Retirement 2030 or 2045 fund. This will erase your headache on price flucturations.
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