Benefits of saving money

This is a topic that I feel is very important for myself and especially my other peers that are in school and need to afford specific things to help live their life. Over the past couple of months, I have been monitoring what I purchase and how well I spend my money. Not many people watch their spending, and end up in debt, which is not a good idea in today's economy.





In this blog, I want to share some tips with everyone about what they can do to watch their expenses and maybe even cut some out. I did a project last quarter in Excel, which was a personal budget sheet for myself. I thought this was such a great idea because it helped me learn how to use the cells in Excel and all the different formulas, but it also helped me open my eyes to all the careless spendings that are in my budget. For a few months, I was going to the nail salon, getting my nails done, and treating myself to things of that sort. After those few months, and as I started that budgeting project, I realized, what am I doing? Right there, that was a careless spending because it was something I liked to have done, but it was also something I could do for myself and save myself the extra money.

I have been putting money aside for myself that I will later be able to put towards my loans and other things for school, but I still need to pay careful attention to where I am sending and putting my money. I have decided to start putting a good chunk of my money into my savings account and not touching it, unless I necessarily need to. At this point in my life, I am realizing that now saving money will benefit me in the long run.

I have done a little research online in regards to saving money, and there are many tips available for those who do not know where to start! I have decided to start making a binder, which will include a good summary of my expenses for each month and things that I need to take care of.

After my research, I found some student tips that I would like to share with everyone:

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.

* Join a credit union. Don’t just sign up for a random bank giving away t-shirts or frisbees at registration. Track down a credit union in town, or do some research into online banks.
* Don’t get a credit card unless you absolutely need one. Don’t be a sucker. Those guys sitting behind the sign-up table are not there to help you. They’re there to make money.
* Avoid non-academic debt. It might seem like a good idea to put that Xbox on a credit card, but it’s not. Focus on developing good money skills with cash. Worry about credit later.
* Save and then splurge. If you decide you must have that Xbox, then save for it. Wait until you can pay cash.
* Pay your bills on time. Basic advice, but it’s surprising how many people lose track of things. If you pay your bills as they arrive, you won’t have to worry about forgetting them.

Organization and Planning
Some minimal organization will keep your finances in order. Each of these is an important adult financial skill.

* Track your spending. Use a notebook, or use Quicken if you have it. Good records will prevent you from getting overdrawn at the bank or charging more than your credit limit. This habit also allows you to detect spending patterns.
* Make a budget. It doesn’t have to be fancy. At the start of the month, estimate how much money you’ll receive and decide where needs to go. Remember: you don’t need to spend it all.
* Save your receipts. Put them in a shoebox under your bed if you must, but hold onto them. You’ll need to be able to compare them with statements at the end of the month. And some you’ll need to keep for several years.
* Guard your vital stats. Don’t give out your social security number or your credit card info except to known and trusted sources.

Decision Making

Get in the habit of making smart choices now, and you’ll develop a pattern of behavior that will stand you in good stead the rest of your life.

* Make smart choices. You can do anything you want, but you can’t do everything you want. Decide what’s important to you, and pursue that. And remember to leave time for yourself.
* When you want to buy something, ask yourself “Do I need it?” If you think you do, then wait. Don’t buy on impulse. Write the object of your desire on a piece of paper and pin it to the wall. Look at it every day for a week. If, at the end of the week, you still think you need it, then consider purchasing it.

Making Money
I’ve saved the best for last. If you can master even one of these, you’ll have a head-start on your friends. Master all four, and you’ll be on the road to wealth. No kidding.

* Spend less than you earn. Don’t earn much? Then don’t spend much. If your spending and income are roughly even, you have two choices: earn more or spend less. When I was in college, I worked as many as four jobs at once. This gave me a lot of spending cash. (Unfortunately, I didn’t do a good job with the spend less part of the equation.)
* Be an outstanding employee. Good work habits can pay enormous dividends, leading to recommendations and contacts that you can use after you’re out of school. Several of my classmates turned work-study jobs into launching pads for future careers.
* Start your own business. Can you install a hard drive? Can you strip a computer of spyware? Can you perform minor car repairs? Do you have a pickup truck you could use to haul furniture? Are you a passable guitar player? Charge cheap rates and exceed expectations. Word will spread. When you’ve built up a customer base, you can raise your rates a little. This is an awesome way to make money.
* Learn to invest. Find a discount broker and begin making regular investments. Sharebuilder is a great choice for college students. It costs only $4 to make a scheduled stock purchase, and you can invest any amount of money, even $20. Don’t obsess over the details yet. You can worry about high returns and low fees later. Right now the most important thing is to develop the investment habit. (Ad: Buy Stocks for $4 at ShareBuilder.) Ten years from now, you’ll thank yourself. If you can find a way to invest $1000 a year for the next ten years, you can set yourself up for life. No joke.

Those tips above came from http://www.getrichslowly.org/blog/2006/08/30/27-money-tips-for-college-students/

You will be surprised at how much money you can actually save by taking the time to review those tips. It's important to save now because down the road it only gets worse. Another thing I also do is I have a change jar, this was when I get change back instead of bills, I throw them into my change jar, and after a while it really adds up! It's definitely a good idea, especially if you have the clanking around of change in your purse or in your pocket!!

I hope everyone takes into consideration these tips. You never know what it could do for you, and how much it could possibly save you! Have a great weekend!