How to save when you have very little?

I have a pretty good situation for myself because I can work maybe one or two days a week so I can get a little more extra money. Paying your bills and food only with Social Insurance Institution’s study grant is very difficult. Before I went to Metropolia University of Applied Sciences I was laughing with my friends, who said that they have to live with tuna and macaroni. But if you prepare all your food by yourself you can save lots of money. I have cooked for all my life so I know what I am talking about. For example if you buy premade macaroni casserole it costs about 2.50 euros and you eat it maybe a day or two. But if you buy your own ground meat, onions, macaroni, milk and eggs it costs about four or five euros and you can eat from it three or four days and most importantly you know what you eat. So you don’t have eat all the food additives they but in premade foods.

Especially food in Finland is pretty expensive so students have to balance between bills and food. I myself get a whopping 260 euros after taxes but my maintenance charge is 380 euros and loan 110 euros. When I’m not at work a have to live with very tight budget because I simply don’t have money to buy everything I need. Luckily I have friends and family, who are willing to help me if have troubles with money.

“You have to start saving. This begins as soon as you stop spending more than you earn. Whether you’re the parent of a newborn, or a teenager with your first job, or both (in which case you and your kid just might go to college at the same time), you should start saving.” (Advani. 2103. 92)

I totally agree with that advice for saving money. I started my own saving, when I was 15 years old when I got my first summer job. Saving money as a youngster I have had the opportunity to travel and buy everything I have wanted when I have grown. But it is also very important to have some money saved if something bad happens. Also as I started saving so young, I have now an apartment of my own (some bank debt left). It is much cheaper to have an own house because rents are so high in the Helsinki region. I have now my own 80 square meter house when the rent of a similar size house is over thousand euros. That’s why students also live together with their friends.

“Money Management

Now that you’re on your own, you might be tempted to spend money on all the things your parents wouldn’t let you have before. Go slow. If you play it smart, you can avoid the sort of money troubles that plague many young adults.” (27 Money Tips for College Students, Get Rich Slowly, 12.3.2014)

It is very important to plan your month in advance so that you can make a budget for your expenses. You have to watch your incomes very closely so that you can make a budget that you can execute. If you spend more than you earn you must cut your expenses. For example you can use more cash money than credit card. Another way to cut expenses is to save all your receipts for a week so that you can see where your money is going. I think that everyone has something that they could easily sell like clothes or something else. That is an easy way to earn a little extra cash. You can also buy some of your clothes from the flea market. There are many quality clothes at a very cheap price (if you have the time to search for them, which I don’t have).

 

References:

Advani Reuben. 2013. Financial Freedom: A Guide to Achieving Lifelong Wealth and Security. Springer-Verlag. New York

Taylor Lester D. 2010. Consumer Demand in the United States: Prices, Income and Consumption Behavior. Springer-Verlag. New York

Roth J.D. 2007, 27 Money Tips for College Students, http://www.getrichslowly.org/blog/2006/08/30/27-money-tips-for-college-students/ 12.03.2014

 

 

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5 Responses to How to save when you have very little?

  1. nikoton says:

    Very professional yet funny text! Nice work. I like the pictures as well!

  2. winsentti says:

    The money management part hit me. When I moved out I had around 2k saved in my bank, but it quickly vanished. 🙂

  3. hocuspocus10 says:

    Interesting title! This text was very easy to read. Nicely done.

  4. anttivuo says:

    I never saved when I was younger and now it seems unlikely I’ll ever be able to buy my own place. Shit happens :—-D

  5. I think also, this blogtext is very professional 🙂

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