Don’t save what is left after spending; spend what is left after saving.”
This is the core principle followed by Warren Buffet, the financial Wiz in building his wealth.
Well, we can learn that from him and incorporate the habit of savings into our lives, especially during our early years since like with all good habits it is the case, that the sooner you start, the better it is. As soon as you learn a good habit, you need to practise it.
Let us tell you how.
- Create a Budget: Trust me, creating a budget is like half the battle already won. We are rational creatures and more likely to stick to things written down. Create a budget to outline all of your income and expenses, track spending habits, and identify where you can reduce or save money. So, take out a pen and paper and get started!
- Prioritise needs over wants: Economically, there is a difference between need and want. Financially, you need to figure out. So, make an effort to differentiate between essential expenses and discretionary spending. Prioritise meeting basic needs first such as rent, utilities, and groceries before indulging in non-essential purchases.
- Cook Meals at Home: we all are guilty of this, especially with the advent of online delivery, we all want to spare efforts on cooking. But, eating out can be costly. Prepare healthy and cost-effective meals at home instead. Pack lunches for school or work as it provide healthier and cost-efficient options for you and your family.
- Utilise Student Discounts: Many businesses provide special student offers, so be sure to inquire if there are any special rates or deals just for students – this applies from clothing stores to entertainment venues!
- Purchase used textbooks or rent them: Textbooks can be expensive. Instead of investing in new copies, consider renting the ones you need from friends or through platforms and bookstores that offer rental options such as these. Also, consider selling out your own textbooks for that matter.
- Reduce transportation expenses: Take public transit, carpool with classmates or colleagues, bike or walk if feasible and consider biking or walking as ways to cut transportation costs and save on gas, parking fees, and vehicle maintenance. All these alternatives could help save you money!
- Utilise Free Resources: There is nothing as good as freebies! Take advantage of all available campus or online free resources such as libraries, computer labs, software licences, and academic journals that you can utilise without incurring extra expenses for resources that you could potentially access without spending extra.
- Reduce Entertainment Expenses: Search for low-cost or free entertainment options such as campus events, movie nights, community festivals, or outdoor activities to reduce entertainment expenses. Consider inexpensive streaming services as an alternative to costly cable packages.
- Limit Impulse Purchases: Before making non-essential purchases, give yourself time and space to consider them carefully before rushing into an impulse buy. Impulse purchases can quickly add up, straining your budget. And if possible, get rid of credit cards.
- Save on utilities: Conserve energy by turning off lights and appliances when not in use, switching to energy-saving bulbs, and adjusting thermostat settings as a means to decrease utility bills. This could potentially lower utility expenses considerably.
- Consider roommate or shared housing options: Sharing rent and utilities can drastically cut your housing expenses.
- Use student resources: Take advantage of student resources such as student health centres, gyms, and counselling services that may come at reduced or no cost for you as a student.
School will teach you all the hard skills you need to thrive in life. But, soft skills, you have to learn them on your own, and the most important of them is saving money, after all, wealth saved is wealth created.