Many of us college students are in our early 20s, and some of us may even be in our mid-teens. So it could be that you feel indifferent about saving money–but really, it is never too early to start learning this skill. Later on in life, we will need to save larger amounts of money, but those skills and habits won’t be there for us unless we cultivate them today. So the question is, how do we develop this skill?
The first step is to know exactly why you want to save money. Without a purpose for your action, you will likely end up spending the money instead of saving it. You might be buying groceries, such as birthday presents for your friend, or cute clothes that you’ve been wanting to get. And that makes sense–you have a reason behind your actions when spending money. It works the same for saving money, too. Make clear goals for the money you are saving: what is the money for and how much will you need to save? Small goals such as buying AirPods are fine, as long as these goals are clear and you learn how to apply them with discipline and efficiency.
Once you have created goals, you need to make a roadmap to reach them. First, you have to decide within what range of time you would like to accomplish your goal. After that, you should calculate how much you need to save each month in order to achieve your goal by that set time. An important point is to be realistic in the amount of money you are trying to save. You cannot aim to save $1000 a month when your job pays you $1500. If you want to save up more money every month, you will have to either find a way to increase your income or minimize your fixed outcomes.
Creating your budget is crucial–and I cannot emphasize this enough. It is essential in creating a sustainable and realistic roadmap for your goals. Writing out all your monthly or weekly earnings and spendings will help you to see where your money is coming from and how you are spending it. This might sound too simple to be important, but you can barely start your roadmap without having a personal budget. You might notice that you are earning more or less money when you regularly keep track of your income. If your only income is the allowance you get from your parents, getting a campus job could be an excellent option for you. You will most likely discover some expenses in your budget that you did not consider before making the budget. You can also learn more about yourself through observing your spending habits–this often correlates with your psychology. If there’s a trend of extravagant spending on food or anything that ended up being quite useless to you, for instance, you can try to identify why that happened. Are you going to experience burnout? Are you dealing with mental or emotional stress? Address those problems right away, not only to keep your money safe, but also your health.
As you fine-tune the details of your budget using all the financial records you have–such as your bank statements, card bills, and tax records–adjust your goals and plans accordingly. The 50:30:20 rule might be helpful–50% of your income should be spent on your needs, 30% on your wants, and 20% on savings. And, of course, you can change that ratio in a way that fits you the best. If you are a dorm student, you might not even have to spend anything on “needs” and instead save up to 70% of your income. However, be aware of your health, your other important commitments, and your time. Do not trade those factors just to save up your money a year or two faster. Your goals can wait, and they will eventually be achieved as long as you stay diligent and stick to good saving habits. After all, we are saving money to ultimately spend it in a way that increases our quality of life. Most of all, remember your ultimate goal–making your money work towards it will take you a long way.
The Student Movement is the official student newspaper of 日韩AV. Opinions expressed in the Student Movement are those of the authors and do not necessarily reflect the opinions of the editors, 日韩AV or the Seventh-day Adventist church.