As a student who attends school full time and works part time it can challenging to stay on top of your finances and save your money.
When I used to go to school (before the pandemic hit) I would always tell myself that I don't need to pack a lunch because I will come home early to eat and that was never the case. I would stop by Mandy's at least three times a week to get myself a $10.00 salad.
Since the pandemic hit, I've had a good understanding on what I should and shouldn't spend my money on.
Here are my 5 tips to start saving money:
1- Determine the difference between a need and a want.
A need is something that you cannot live without. For instance, buying a new pair of shoes because the one's you've had don't fit you anymore. Now, this doesn't mean that you should go splurge on designer pair of sneakers and spend over $500.00.
On the other hand, an example of a want is wanting to buy a new Gucci purse when you already own purses that are in good conditions.
2- Don't let your debt accumulate.
The first thing you should be doing at least every month is paying off your credit card. Most student credit cards don't charge interest if you pay the balance within the first 21 days. Why should you have to pay extra money?
3- Limit your expenses.
If you have a gym membership and haven't been in over 2 months, cancel it! We all know that the monthly price of phone plans in Canada is among the highest in the world, so every year call your service provider and see if they would be able to lower your rate. Instead of buying your lunch at school everyday, bring your own!
4- Live below your means.
This is crucial to start saving money. If you’re spending all the money that you receive from your pay checks then you’ll always have 0 dollars in savings. Your goal is to have money leftover at the end of each month.
5- Grow an emergency fund.
An emergency fund is set in place in case you lose your job, you aren't making a lot of money, etc. Your emergency fund should consist of 6 months of expenses. Calculate all the expenses you have in a month, example, car insurance, car payments, phone plan, gym membership, Netflix, etc. Next, multiply that number by 6 and that should be your minimum amount for your emergency fund. If ever you do lose your job, this fund will help you to not go into debt.