For many student’s, including me, money often causes unnecessary and agonizing headaches. Those headaches can lead you into anti-social behavior, a low-protein diet, being known as the Stinkerbell and even seeking for help from your mom. So I looked up some facts about saving and decided to share them with you my fellow sufferers.
Find the money
Find out how much money you get monthly. If it changes every month depending on how many work shifts you have done, rather calculate it on the low side. That way in the end of the month you have saved money instead of having nothing in the last five days.
Did you know that buying a bottle of spring water two times in a week makes 255€ in a year!
Draw up a list of your monthly compulsory expenses, how much you spend money on rent, food, traffic, phone, internet etc. After that draw up a list of other expenses: clothes, activities, hobbies, drinking, beauty etc.
When you have a list of your expenses it is easier to tell where and how much you spend your money. On my case I was shocked by the fact how much I use money on clothes and beauty products. I had no idea that in a month I had spent 300€ on those things.
Divide the money
Divide your monthly income into your compulsory expenses. Also be aware that sometimes you may end up having some compulsory spendings you where not expecting on having, such as medical costs. Those costs can often be high and cause problems for the rest of the month. This is why I recommend you to put an extra 100€ into compulsory expenses.
Did you know that buying a chocolate bar three times in a week makes 86€ in a year!
After dividing the money on the things you have to pay monthly you will know how much money there is left for you to spend on other not so important things like clothes.
Cut the costs
As an example food expenses are easy to cut. Start to look up the offers, buy more and freeze the food so it remains longer. Avoid convenience food and prepare your own meals. Compare prices and check the dates. And the best tips on my case don’t go to the store when your hungry and go for dinner at your parents. It is a win-win situation for both of you, your parents are happy to see you and you get a great meal for free.
Did you know that buying a bag in grocery store five times in a week makes 65€ in a year!
Phone costs can be cut easily by instead of texting send the messages through software. Today, most people have internet connection on their phones which provides texting on softwares without any costs.
Hide the money
After you have found out how much money you need for your compulsory expenses calculate how much money you want to use on other goods and activities. Create an another bank account where you don’t have a debit card. That way you can not use the money on it so easily. After counting month’s expenses put the rest of the money on that new account, that way you will save money every month. After that you can spend the money that isn’t for compulsory costs for everything else and when the account starts to get empty you know you don’t have to worry because you have money saved on the other account.
Did you know that buying a pack of cigarettes twice a week makes 610€ in a year!
Make a goal
It is far more easier to save when you have something to save for. Want to go to a holiday in Bali? Print a photo of Bali and put it somewhere where you can see it every day so it reminds you for you destination. Decide a saving target for every month, for example in January I won’t drink alcohol at all, in February I won’t buy clothes at all etc. That way you can put every month the amount of money you would have used on the thing you did’t do on the saving account.
Track the money
Keep track on your expenses. Save the receipts and write down where you have spent your money. Keeping track also keeps you aware of your financial situation and that way you have a knowledge of how much money you are able to spend.
I hope you find these tips helpful because I surely did!
Talous hallintaan –Miten opit hoitamaan talouttasi niin että voit nauttia elämästä, Titi Heikkilä, Mediapinta, 2011
http://www.martat.fi/rahat/saastovinkit/ , read 14.3.2014