SIMPLE SAVING TIPS FOR ALL STUDENTS

Whether you a first year student or a returning student, saving money is something we all should adapt to. Being thousands of kilometers away from home requires you to be mature and so does your wallet. 

One common question that has been asked is what is the first step to saving money is? For this is the step many students tend to get stuck in. At times it can be difficult to figure out simple ways to save money and how to use your savings to pursue your financial goals. This step-by-step guide can help you develop a realistic savings plan.

1. RECORD YOUR EXPENSES

The first step in saving money is to know how much you’re spending. For one month, keep a record of everything you spend. That means every coffee, every airtime and every snack you purchase for the entire month. Once you have your data, organize these numbers by category—for example groceries, transportation fee and so fourth - and get the total amount for each.

2. MAKE A BUDGET

Now that you have a good idea of what you spend in a month, you can build a budget to plan your spending, limit over-spending and make sure that you put money away in an emergency savings fund. Remember to include expenses that happen regularly, but not every month, like if you a student with a car you, your car will require service once in a while. 

3. PLAN ON SAVING MONEY

Taking into consideration your monthly expenses and earnings, create a savings category within your budget and try to make it at least 10-15 percent of your net income. If your expenses won't let you save that much, it might be time to cut back on some luxury items i.e. not buying for favorite chocolate slab will not hurt you for one month. Look for non-essentials that you can spend less on—for example, entertainment and dining out - before thinking about saving money on essentials such as your vehicle or home. Also make use to cheaper restaurants for example, Eastern Food Bazaar, sells qualitative food at reasonable prices that students can also afford.

4. SET SAVINGS GOALS

Setting savings goals makes it much easier to get started. Begin by deciding how long it will take to reach each goal.

Some short-term goals (which can usually take 1-3 months) include:

• Saving money to buy a flight ticket back home during Varsity holidays
• Saving to buy a new smartphone
• Saving to buy new sneakers

Long-term savings goals are often for over 3 months and can include:

• Saving for the year end party
• Putting money away for December vacations

5. DECIDE ON YOUR PRIORITIES

Different people have different priorities when it comes to saving money, so it makes sense to decide which savings goals are most important to you. Part of this process is deciding how long you can wait to save up for a goal and how much you want to put away each month to help you reach it. As you do this for all your goals, order them by priority and set money aside accordingly in your monthly budget. Remember that setting priorities means making choices.

7. MAKE SAVING MONEY EASIER WITH AUTOMATIC TRANSFERS

Automatic transfers to your savings account can make saving money much easier. By moving money out of your account, you'll be less likely to spend money you wanted to use for savings. There are many options for setting up transfers. You choose how often you want to transfer money and which accounts you want to use for the transfers. You can even split your direct deposit between your checking and savings accounts to contribute to your savings with each paycheck. Thinking of saving as a regular expense is a great way to keep on target with your savings goals.

8. WATCH YOUR SAVINGS GROW

Check your progress every month. Not only will this help you stick to your personal savings plan, but it also helps you identify and fix problems quickly.

For more information on how to save you can contact your Local Student Representative Council (LSRC) Finance and Projects Officer, Luchulumanco Nanto at SRC Office, Student Centre or alternatively you can visit Student Counselling office which is at 2^nd Floor Administration Building.