Why should I save money?
Saving is a very important skill for you to succeed in your life. Putting money aside is the best way to avoid unnecessary debt or loans. It is a great way to stay successful even when unforeseeable events create unplanned expenses. As a college student it is very important to have some cash stored away for use in the case of emergency. Saving money will help you reach your goals. Early planning and saving could even be the key for you to retire early and live comfortably in your years beyond work. CashCourse has some great information.
How do I start saving now?
If you are looking at this page chances are you are in college. The usual thought is that it is unlikely you can save money while attending school. But the truth is that there are plenty of opportunities for college students to earn some extra cash, and to put some of that aside for future needs. If you feel that you have enough time, you could fill it with some part-time work. Check out CashCourse with some more tips on saving while in college.
The easiest way to start saving is to make it your priority. Paying yourself first, before your bills and other "want" related expenses will go a long way. To start, try with some small amount, like $10 to $25 at a time. This will help you in the process in paying yourself like you were just another bill. If you have direct deposit you can even have it directly taken out of your paycheck and have it put into a savings account. For more information on this strategy check out CashCourse.
Where are other opportunities for me to save money?
- When buying more expensive items, check to see if there are any rebates offered.
- Put any refunds, raises, or gifts in savings rather than spending it.
- Shop at thrift stores to find new outfits at lower prices.
- Pack your lunch - saving $5 to $10 dollars a day on your mid-day meal could lead to savings of over $1,000 a year.
- Check out SmartAboutMoney.org for more tips
How much money can I really save?
Interest is a powerful thing. In an interest-bearing account your money can grow. Current rates may be low, but an account that gains money when left alone is much better than an account that doesn't grow at all. The chart below shows the power of interest, even in just a five year period. After 5
years if you saved $200.00 a month you will have put away $12,000. A modest 4% interest rate will have given you an extra $1,260, that is money that is just earned by having your money in a financial institution.
How Savings Grow Over 5 Years