5 Ways You Can Save A Chunk Of Your Pocket Money
13 March 2019
For the most part of college years, students depend on the pocket money that they receive from their parents for survival. However, with a lack of a plan or budget, students end up spending the entire money and are left with peanuts towards the end of the month. Therefore, here are a few tips for you to make sure that you can save a chunk of your pocket money every month and eventually build a savings account for yourself in cases of emergency.
- Freelancing: College years are the perfect opportunity for you to nurture your hidden talents. Every student has one talent or passion that they can monetize. Entering the world of freelancing comes with its own benefits. Primarily, you get to do what you like and earn money from it. Secondly, you get to add this to your CV, and you get to explore an industry which is occupied by individuals following their passion. Some of the examples of freelancing include photography, blogging, or content writing, giving music lessons or teaching part-time.
- Create a budget: The importance of creating a budget cannot be emphasized enough. Every financial advice you receive throughout your student, work, and retirement life will include maintaining and sticking to a budget. But for now, a budget is the guide for your pocket spend. You basically get to know how much to spend, where to spend, why you are spending, and whether it is necessary or not. Making a mental note is not the same as writing it down and keeping a treack at all times. Now there are even phone apps that helps keep track of your expenses and expenditures. This is classic hard and fast rule where you will end up saving much more than you usually do.
- Focus on your future: This seems like advice that students receive on a regular basis from parents, guides, teachers, peers, etc. However, we say focus on your future not only because that is the one focus required at this point but also the more you focussed you are, the more you eliminate unnecessary expenditures. If you channel your focus and, importantly dedication towards the right direction, you will have less time in your hands to go for weekend getaways with your friends which ultimately is a burden for your wallet. This way you spend on real big bucks and at the same time, can actually put it to use later while also attaining direction for your future.
- Split the cost: Students tend to become generous, or rather embarrassed when it comes to paying the bill and end up paying more than their share. When you start earning, you can pay the entire bill (not recommended until a very later stage) without worry because you probably go out with your friends once or twice a month. However, in your student years, you will find yourself going out for evenings with your friends almost every other day. If you keep paying everyone’s share, you are bound to be left with no money towards the end of the month, but if you insist on splitting the cost accordingly, then you will save your pocket money. Neither is this a rude gesture nor should you be embarrassed to do this. If you are a student, so are your friends and everyone understands or are supposed to understand the financial restrictions you have. But first, make those restrictions for yourself.
- Differentiate between necessity and luxury: Students tend to purchase products that they do not really require. This is where you need to stop and question yourself: Is this really necessary? If the answer is no, then stick to a complete “NO”. You know best whether you require to absolutely purchase something or not, and due to this reason, you need to differentiate between luxury and necessity. Once you get into the habit of differentiating, you are guaranteed to save a chunk of your pocket money.
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