Money Saving Tips

So I don’t know whether it’s the realization of all (And I mean ALL) the loans I’ve taken out for school or the knowledge of the fact that I am going to have to pay them back at some point, but recently I’ve gotten really into money, more specifically every single possible way to save money. I’m not sure exactly when it happened but not only have I realized how much money I’ve been wasting, but that there are a multitude of ways that I could have been saving money all along. So I’ve compiled a list (mainly for college students but could apply to all) of easy ways to save some money and work yourself out of college debt and loans.

1.     AVOID TAKING OUT PRIVATE LOANS. Yes it is in all caps for a reason. DON’T DO IT. Seriously. Yeah I know that college is expensive and at some point you might need to take out a loan but don’t take out a private loans, you’ll be in debt till you’re in your gave (okay that might be a slight exaggeration, but still avoid it at all costs.) If you do have to take out loans to help pay for school, like I did, stick to the subsidized and unsubsidized loans, preferably just the subsidized loan since the Federal government pays the interest on this loan vs. the unsubsidized loan in which the borrower remains responsible for the interest as well as the value of the loan.

2.     Start Building Your Credit ASAP. Because eventually you may want to buy a house or car. Along with this point also make sure that you take care of your credit, don’t let unpaid bills or late loan payments ruin that credit score, it’s not easy to get back out of debt once you’re in it, so avoid taking on more than you can handle; loans, credit cards etc.

a.     Credit Cards: personally I was against getting a credit card for a long while since I figured that it was unnecessary and would most likely result in me heading into debt, recently I caved and got two credit cards and honestly it has made me all the more responsible. However, I don’t think that all college students should get a credit card, but if you’re responsible go head and get one! Ways to avoid getting in to deep with a card, don’t buy unless you have the money in your account or pocket at the time of purchase. If I know that I can’t repay the money I’m using then and there don’t get it. Remember the key is shop within your means.

                                                        i.     If you don’t know your credit score Transunion, Equifax, and Experian all offer one free credit score a year and if you have a Discover card they send a FICO credit score with your monthly statement.

3.     CD’s! Or certificates of deposit are a certified way to not only keep your money secure but also earn some interest! Personally I love CD’s because of the fact that you don’t have to report them on FASFA since the money is frozen for the time interval you choose, and only become liquid once they mature, unless of course you choose to renew them. CD’s are pretty much offered at any bank, and each has it’s own minimum requirement for an amount to open the CD and time for maturation.

                                                        i.     Side note: CD’s make a great savings plan since if you withdraw money from the CD before the date of maturity most banks will fine you.

                                                      ii.     Added benefit most CD’s have IRA’s included (individual retirement accounts) a little extra on top of the interest you’ll get.

4.     Check that the bank you have is actually working for you. Honestly I have been with PNC since I was 13 and after working for a bank for four months I decided to research other banks to see if there was a better bank for me and wanna know what I found? Not one but TWO banks that were willing to provide me with better benefits than PNC does and were willing to work with what I wanted out of a bank. So hasta la vista PNC, and no it’s not me it’s you.

                                                        i.     Some banks actually offer accounts called Club Accounts that you can open for $1 and give you .25% interest on the money that you put in, great for saving up for a vacation, some holiday spending money, or just emergency money that could come in handy.

5.     Excel. So I’m a seriously OCD person, and so one day I made an Excel spread sheet with all the bank accounts that I had and my rainy day funds and calculated the total amount of money that I had so I could actually physically see it, and I’ve updated the spread sheet every week since. This way I can actually see where my money is going and my spend habits, when I notice my spending is getting out of control I know exactly where I can cut my spending and focusing on saving.

6.     Instantly cut your paycheck in half. (Or as much as you can put in to savings) As soon as I get paid I take money from my check and transfer parts of it into all the different accounts I have so that I’m not tempted to spend my entire check and be left with no money saved.   

                                                        i.     Spend within your means. You know how much you make and whether you can really afford that new iPhone, so don’t try to live beyond your means, it’s honestly the quickest way to get yourself into debt; and as I mentioned before it’s super easy to get into debt and almost impossible to work your way out of it.

It’s sad to say but money sorta controls almost every part of our lives, whether you wanna admit it or not you can’t live without money; so make sure that you’re at least thinking about how to cut costs or investing in some type of savings bond or retirement fund; better early and prepared than sorry later on!