The life of a university student is tough in every single way, although you learn some tricks along that amazing journey. One of those important hacks is how to manage money.
I strongly believe that students should be aware of how to balance their life correctly – not only the academic aspects but also social, health, spiritual and economic areas. That’s why I decided to write about how I save money and not die while doing it!
1. Open bank accounts, as many as you need
I like to see my money as real as it can be. That’s why I have 4 bank accounts. In this case, segmentation is my way to go – I have one account for monthly payments or flat bills, while another one is for my expenses only, such as clothing, eating out, treats, etc.
On the next one, I’ve got all my money for grocery shopping exclusively with a budget to spend on every week, and last but not least my savings account, which I don’t touch unless for emergencies.
2. Write down all the things you need and want (be realistic)
Knowing your expenses and being realistic will make your savings account grow month by month, because then you have all the clear numbers to start adding money on the right accounts.
What I do is I add up all the expenses and add 5 or 10 pounds just to be sure. After this, I deduct my income to spread on each account. Remember that you should not aim to spend your full payment because that won’t let you save money or learn the culture of it. They are two different things and I promise you in the future you’ll be glad to have known and differentiated them.
3. Set a goal or start believing in rainy days
I don’t know if I should consider this a cultural shock, and I’m sorry beforehand if I’m not right, but I have loads of friends who don’t care about saving in the long term. It feels as if they would only do it for a goal and then they are back to zero on their accounts. However, the situation should not be like that, and if you have the same thoughts, I’d recommend you re-think them.
I know it’s hard to save and have money there without letting yourself use it. I recommend you simply think about a dream or a very long-term goal that you’d like to achieve at some point in your life, and then start building your savings for it. I think something obvious would be like being a house or car owner, so start working for that from today!
Or just believe in rainy days – unfortunately, they do come and you should be both mentally and economically prepared to tackle them.
These are a few of the tricks I’ve discovered and I hope they are helpful. As you are growing economically, you’ll find out ways that suit you the best. Even if you haven’t started to save, remember that every bit is important, you are still young and you have your whole life to add to that account.
Stay safe and wash your hands,