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Sorry for the poor audio quality this video, there was a lot of background noise I needed to remove.
Are you broke? Same here! In this video, I share 10 ways that I save money as a broke college student. Savings is the root of all capital, and it is very important that we save as much money as we can early on to get ahead and not fall behind on our debts (especially as students). These aren't exactly get rich fast hacks, but they will accumulate savings over time!
Remember, saving money is a choice! If it doesn't fit your lifestyle, do not try too hard to mimic the tips I present. However, I do advise that you heavily consider the tips (NOT financial advice). I believe that these ideas will help you become more financially aware and having the extra money will make it easier for you to support yourself (and potentially your family in the future!)
I realize this isn't the perfect list, and I left out some amazing ideas such as buying second hand textbooks instead of new ones! So be creative and find your own ways to save money even outside this list!
1. MAKE A BUDGET - this is very important, as without a financial plan that tracks your money coming in and going out of your pocket, it is very easy to lose track of where you stand financially. If you do not keep track of your financial position, it can be very difficult to determine any changes you need to make to improve your position. Keeping your transactions on record makes things more organized, which is crucial and is also one of the reasons why successful companies do so as well. With a budget, you can keep your spending at a reasonable amount and ensure that you are on track with your financial goals. I personally use a budgeting app like Mint.com.
2. AVOID SALE ITEMS - this is obvious, but what I'm talking about is when someone says that they “saved money” when they bought a huge haul from a sale. For example, someone who bought $800 in shoes at 50% off didn’t save $400, they actually spent $400. Sometimes sales do make sense, like buying out of season things like summer items in the winter. The psychology of purchasing things can really be a trap, buy things on sale if it were a purchase you would’ve made anyway.
3. DRINK WATER - cut the crap and sugary drinks! Not only are they more expensive, but they are also bad for your health! Don’t buy bottled water either, it is not only more expensive but it is also bad for the environment. Buy a filter, and filter your tap water…
4. STOP EATING OUT (AS MUCH) - this adds up very quickly if you do not pay close enough attention to it. It’s okay to celebrate once in a while, but make sure you do it reasonably and that you budget for it!
5. BUY GROCERIES - instead of eating out, you can be more cost effective and buy your groceries to make home cooked meals. With the right budgeting, you can eat pretty healthy meals for $2/meal, which can save you lots of money in the long run.
6. BUY GROCERIES IN BULK - this is usually cheaper than buying groceries regularly, and can save you a few trips to the store here and there. However, you have to be careful and not buy too many groceries that you end up wasting it due to the sheer quantity that you bought. Find a balance that works for you and this can save you an extra buck or two over your undergraduate career.
7. DON’T OWN A CAR - A car isn't a symbol of wealth, it is extremely expensive to own and many people (especially young people like us) do not consider the actual cost of owning a car. You have to pay for things like insurance, your car payment, maintenance for wear and tear, gas which will probably add up to $8000+/year. Take public transportation, and if you need a ride with a car once in a while, Uber exists.
8. THINK BEFORE YOU BUY, SLEEP ON IT - think hard if the purchases you make are needs, or are they wants. There is a fine line between the two and it’s sometimes hard to see when you are on autopilot. Sleep on the purchase and see if your impulse to make the purchase wears off over time.
9. DON'T FOLLOW TRENDS - especially for clothing/style, as the style today may look very stupid in the future. Personally, I don’t have a sense of style at all but I know that the plain shirts that I wear will still be in my wardrobe for years to come. Another thing to consider is that brand name vs generic name products practically serve the same purpose with comparable quality at times.
10. HIGH INTEREST SAVINGS ACCOUNT! - If you are not investing your money, at LEAST put it into a savings account that pays you enough interest to break even with inflation (~2.2%, I realize I mentioned a lower inflation rate in the video), just so you aren’t losing money.
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