The state of the economy is far from perfect these days, but that doesn't mean that we can't still live our lives normally while saving money in the process. I'm a college student, and you may be thinking, "What does a kid know about financial issues?" As a student, I understand the importance of saving every dime because I don't have an extra dime to spend. I need to balance a part-time job with a full-time academic load, and the result is a few precious dollars. What little money I have goes to tuition, rent, food, car insurance, and bills. The necessities. But that doesn't mean that I don't have some fun while saving some money, too.
I'll fill you in on some of the little things, and even some of the bigger things, you can do to save some cash.
Make a Budget
The first thing that any financially successful person should do is make a budget. First, write down everything that you need to pay for over the course of a month (house payments, insurance, bills, groceries, etc.) Then write down other things you pay for in a month (manicures, movie rentals, restaurants, anything that is not classified as a "necessity"). Create a rough calculation of all the "necessities" and the "luxuries." Compare them. Just writing down your expenses can open your eyes to how much is really being spent on things we don't necessarily need. Now, I'm not saying "cut out your luxury spending altogether!" But you could find ways to cut down on your spending without giving everything up. Instead of eating out twice a week, for example, only eat out once a week. Instead of getting a manicure or a pedicure every couple of weeks, try doing them yourself at home.
Don't Carry Cash
When you have cash in your pocket, it's easy to spend it. You think, "Oh, it's just five bucks." But spending five bucks here and there can lead to hundreds of dollars spent a month, and the worst part is, you can't even remember what you spent it on. Only carry as much as you're going to need, and cut down on the number of times you go to the ATM. You'll automatically spend less. The same goes for credit cards. Too many people think that credit cards are like "free money." You can get what you want now without having to pay for it now. If you're a chronic credit card user, don't carry it at all. Try to use it only for necessities, such as gas or bills. You'll still build credit, but you won't be spending more than you need to.
Make Lists
I never use to make lists before I went shopping; I thought it was a waste of time. I figured I'd get to the grocery store and decide on my items then. Well, I'd get home and start unpacking my grocery bags and think, "Did I really need 2 packages of Oreos?" The point is, only buy what you need. If you make a list, it's more difficult for you to stray towards unnecessary items. But this theory doesn't just apply to grocery shopping; make a list for all types of shopping. If you're buying clothes, think about what you specifically need. If you need dress pants for work and a pair of jeans, only look for dress pants and jeans. If you make a list of the things you need, you'll spend less without giving anything up.
Consolidate Your Errands
Instead of making 2 or 3 trips a week to different stores around town, do all of your errands at once. If you can get several things on your list at one place, do it. Instead of going to the grocery store, then the drugstore, then a retail store, try shopping at places, like Walmart or Target, that carry several different types of items so you can get your milk and eggs, as well as your prescription, as well as some new clothes all in the same place. This will save you time, gas, and money, all of which are extremely valuable these days.
Consider a New Vehicle
Now, I don't expect everyone to put their current vehicles up for sale and buy a brand new, fuel-efficient car. This change is a drastic one, but it can save you a ton of money. I used to drive an SUV, but I was only getting 14 miles per gallon. I didn't think fueling it was that big of an expense, but when I tracked my spending, over two thirds of my income went into my gas tank. That was the motivation I needed to buy a new car. After extensive research, I decided on a $2000 used Kia Rio. It had a manual transmission (which I had no idea how to drive) and no options. It was a definite change; I had to give up my power windows, my automatic transmission, my four-wheel drive, my heated seats...but it was worth it. Instead of 14 miles per gallon, I get between 36 and 40, and that's important when I need to drive 20 miles to campus every day. I saved more money that I expected to, so I calculated the difference between how much I used to spend and how much I spend now. That amount I put in a savings account, and I've been watching it grow ever since.
