2008 Woodie Awards
Setting aside money for essential needs key to healthy college budget
Lindsay Panzica
Issue date: 4/20/07 Section: Fuse
Originally published: 4/19/07 at 3:59 PM EST
Last update: 4/19/07 at 4:23 PM EST
Another part of living on a budget involves not only making money, but saving money as well. If you spend every paycheck that you make then you will not have any money to help out in case an emergency should arise. Jupin said she tries to put away at least $20 from every paycheck into a savings account so that she always has money saved should she ever need it.
Neuhauser said the problem most people run into when trying to save money is that they leave the savings until the end.
They take care of the essentials, such as bills and groceries, then they begin spending the money on fun and hope there will be some money left over at the end which there usually isn't. So the key is to take care of the savings before hand by using the "pay yourself first" method.
"If you want to set aside some money each month for savings and emergencies, the best way to do so is to pay yourself first," she said. "In other words, take care of the savings the same way you take care of the rent - by making the payment before you start spending money on the non-essentials."
Living on a budget as a college student is difficult, but not impossible. The tricks are learning to cut down on the pleasure purchases, keeping track of what you spend, and putting a little away each week for all of those just-in-case moments.
Neuhauser said the problem most people run into when trying to save money is that they leave the savings until the end.
They take care of the essentials, such as bills and groceries, then they begin spending the money on fun and hope there will be some money left over at the end which there usually isn't. So the key is to take care of the savings before hand by using the "pay yourself first" method.
"If you want to set aside some money each month for savings and emergencies, the best way to do so is to pay yourself first," she said. "In other words, take care of the savings the same way you take care of the rent - by making the payment before you start spending money on the non-essentials."
Living on a budget as a college student is difficult, but not impossible. The tricks are learning to cut down on the pleasure purchases, keeping track of what you spend, and putting a little away each week for all of those just-in-case moments.
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