An average student’s problems rotate around classes, friends, relationships and constantly running out of money. It gets more difficult when saving seems impossible. But it is, with the right tricks –five of which we have highlighted for you!
This should be the first thing you do when you get your allowance (or paycheck, if you work). Outline your priorities and plan according to the money you have, makings sure to include funds for emergencies and other contingencies. The trick to saving right is to be prepared for at least ninety percent of all your expenses and the best way to do that, is to have a budget. Creating a detailed budget is one thing, sticking to it is another. Discipline is all you need to spend wisely!
Your lifestyle may just be the reason why you are spending so much and saving so little if any. Cutting down on the outings, eat-outs and expensive fun time can have a tremendous effect on your savings because you get to spend less. Naturally, by spending less of your income, you have enough to set aside for rainy days, or concrete expenses. It doesn’t mean you have to be the killjoy in your group of friends though, you just have to adapt your lifestyle choices to the best fit for your account balance so you don’t end up with a deficit simply because you wanted to remain a cool kid.
If saving was ranked based on academic degrees then, a Registered Retirement Savings Plan (RRSP) is the PhD. of having a savings account. Registered by the federal government, the RRSP is an account that you contribute to on a schedule (usually, a monthly basis) and can only access completely when you retire. It is advisable to create an RRSP as early as your college days so that your retirement funds will be considerably higher. Also, having an RRSP gives you access to the Lifelong Learning Plan, an education fund.
Thrift shopping is the best and most effective way to curb your spending and save more. Stay off the limited edition racks and opt for sales and thrift items instead. You look cool and spend less doing so!
One thing that takes up your money which you may not notice, is buying stuff that you could have recycled. Your pajamas top has a cut and you start looking to buy a new one when you have old tees that you aren’t wearing anywhere. Basically, you need to invest in a lot of DIY so you can shave off unnecessary expenses.
Saving helps you live smarter and worry less!