My Two Cents: Saving Money Pays Off

Document created by jacobh on May 17, 2016
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In my experience, having enough money can feel like a lofty goal. But it doesn't have to be. Putting even a small portion of money aside can really add up, giving you the funds you need to have peace of mind all the time. The problem people have with saving money is that they can't seem to think of how to save. In college, you may be receiving financial aid in the form of grants or loans. Financial aid is disbursed at the beginning of each quarter, and always goes to paying for tuition and school fees. The rest is given to you. If you receive financial aid, use this leftover money to pay for textbooks and school essentials. After, place the rest into savings. If you have a loan, you can actually give that leftover money back as a way to pay down a portion of your loan, which can definitely reduce the total amount you need to pay back after graduating. That definitely saves money in the long-term.

Maybe you also have a job while going to school. You receive paychecks regularly, so on payday, immediately put a small amount of your pay into savings. Even before you pay for bills and other necessities. Even if you put aside $50 a month into savings, it can really add up. Another thing you can do to save is to look at what you currently spend your money on. Do you buy coffee seven days a week? Maybe make it six days and put that money aside. If you saved even a small amount like that, you can put it towards a night out once a month.

Having a bank account is a really good idea. A savings account usually has an interest rate attached to it which can make your money grow as you save. It's always a good idea to go to your local bank or credit union and start a savings account. Then you can place the money you save into it. Though the interest rates may be low, as you add to your savings account, the yield you get will increase. With the interest rate, your money will grow without you needing to do anything! Some banks will even pay you to start an account with them, so do your research.

It's important to save money regularly and get into the habit of it. The earlier you develop this habit the more money you can save in the long-run. If you need further ways to save money, look online for ideas, or even contact your bank and speak with a financial advisor. Banks have them specifically for account holders, so you get free advice just for saving money!