Like many people, I like to buy things like clothes, food, and entry into different events; and like many college students, I make the bulk of my spending money over the summer. In the past I have found it hard to make these funds last through the school year, especially as I began going out more and spending money on things other than target and the occasional dinner out. Here are my tips to help you make your money last, and even save some for later.
Budgets are the key to staying financially strong. There are multiple ways one can make and keep track of their budget, but a few of my favorites are spreadsheets and the envelope system.
- In a spreadsheet make a budget and include your income (or expected income) and all your expenses including rent, food, and other necessary items. In the summer, monitor where you spend all your money and in the school year create a budget that reflects what you want to do vs what you can afford to do. This balance should leave you enough money to do everything you want!
- The envelope system uses envelopes filled with cash, or checks that you can spend for various things. So for each envelope you put a certain amount of money in, whatever fits your budget, and then once you spend it, you’re out of luck.
Open a savings account at your bank. Over the summer, especially if you have lower expenses, try to put some money in a savings account that accumulates a little bit of interest. You are less likely to spend this money than cash or money in your checking account, plus most banks won’t charge you for it! Full time employees are told to have 6-12 months of emergency money, but I try to save 25% of my paycheck that way I have a cushion if I can’t work or need extra cash quick.
Get a part time job during the school year. Look on campus and see who’s hiring. Many people find on campus jobs that pay minimum wage, or just above minimum wage, however an experienced babysitter can make more than $12/hour. There are constantly job postings around campuses, so make sure you are checking those out before you actually need money.
Try to cut back on your expenses. Going out with friends is great and always a good time, but not if it leaves you with $7.46 left in your bank account. Explain that going to Dive Bar every weekend is not in the budget for you and try to find cheaper alternatives that the whole group can also enjoy. Chances are, you are not the only one struggling financially!
A golden rule for a happy life is to spend less than you make, even if you are only making minimum wage, do your best to put some of it aside. Eventually you are going to want to invest, buy a house, or retire and starting to save now can greatly affect the timeframe of these decisions.