Summer is finally here--and with summer comes summer jobs and internships. While working diligently may be easy for some of us, knowing how to save our money is not. It may seem like fun in the sun spending unknown amounts of money on shopping, eating, and going out, but before you even know it, there will be no money to spend. Before that happens, Savvy Student wants you to think twice before your next buy.
The first thing you must do is live by the motto " SAVE FIRST, SPEND LATER". Make sure you deposit a part of your pay into a savings account before you get a chance to spend it. It’s called paying yourself first, and it's much harder to miss money you’ve never seen in the first place. This will alleviate those "O NO! When did I spend all of that?" moments when reviewing your bank account after the weekend.
Next step, AVOID DAILY SPECIALS! With the easiness of clicking the mouse or swiping a credit card, comes hardship when you are unable to use your money on things you need. When you see your favorite store advertise those daily specials, remember that a marketing team was used to plan ways to stimulate your "spending senses". You should always plan your purchases in advance and buy what you need, not want.
Its always important to SPEND SMALL ON DEPRECIATING ASSETS. Traveling on the T might not be as convenient as you thought it would have been, so buying a new car might be an option. Remember that a new car will generally lose around 50% of its value over a three year period. If you buy a car that cost $30,000, three years later it will sell for about $15,000. That is $5,000 lost a year! With the prices of gas going down, that could have filled up your tank for a whole year.
With that in mind, AVOID GETTING INTO DEBT FOR PURCHASES THAT FALL IN VALUE. Thinking of taking out a loan or using your credit card for purchasing the latest technology, a car, or fashion is one way to stray from your goal of lifetime luxuries. Some credit cards have interests rates up to 20%! If you buy a cellphone for $500 using a credit card, you end up paying back over $100 in interest, and that's if you are making the minimum payment each month. We suggest you save for every purchase. While you are saving, you have enough time to think about your purchase and decide if it is a temporary want or lifetime need.
Always CHALLENGE YOURSELF AND SET AMBITIOUS GOALS. Be realistic--if you know by the end of the summer, there is no way that you could potentially save $1,000,000,000 dollars, then do not set that goal. Always have an end goal, but have smaller goals along the way that you could celebrate when you have achieved them. While setting this goal, keep in mind your expenses. Figure out what can be reduced, or cut. Also have a big enough safety net in which you can plan for unexpected increases in expenses.
Lastly, PROTECT YOUR NUMBER ONE ASSET: YOURSELF. We know how hectic your summer can be. After all, you ARE Brandeisan--one job, one internship, summer classes, and volunteering at the local summer camp, how can you make time to eat, sleep, and shower? Well, in order to enjoy the lifetime luxuries that you are saving up to get, you must actually BE THERE. Please, make sure to sleep 8 hours every night and to never skip out on the most important meal of the day--BREAKFAST. As Mark Twain once stated, "Principles have no real force except when one is well-fed." Savvy Student wants you to know that "Savings can not be made except when one is well-fed" (we like to think we are philosophers)! So enjoy your summer by staying healthy!
Happy Savings,
Savvy Student
The first thing you must do is live by the motto " SAVE FIRST, SPEND LATER". Make sure you deposit a part of your pay into a savings account before you get a chance to spend it. It’s called paying yourself first, and it's much harder to miss money you’ve never seen in the first place. This will alleviate those "O NO! When did I spend all of that?" moments when reviewing your bank account after the weekend.
Next step, AVOID DAILY SPECIALS! With the easiness of clicking the mouse or swiping a credit card, comes hardship when you are unable to use your money on things you need. When you see your favorite store advertise those daily specials, remember that a marketing team was used to plan ways to stimulate your "spending senses". You should always plan your purchases in advance and buy what you need, not want.
Its always important to SPEND SMALL ON DEPRECIATING ASSETS. Traveling on the T might not be as convenient as you thought it would have been, so buying a new car might be an option. Remember that a new car will generally lose around 50% of its value over a three year period. If you buy a car that cost $30,000, three years later it will sell for about $15,000. That is $5,000 lost a year! With the prices of gas going down, that could have filled up your tank for a whole year.
With that in mind, AVOID GETTING INTO DEBT FOR PURCHASES THAT FALL IN VALUE. Thinking of taking out a loan or using your credit card for purchasing the latest technology, a car, or fashion is one way to stray from your goal of lifetime luxuries. Some credit cards have interests rates up to 20%! If you buy a cellphone for $500 using a credit card, you end up paying back over $100 in interest, and that's if you are making the minimum payment each month. We suggest you save for every purchase. While you are saving, you have enough time to think about your purchase and decide if it is a temporary want or lifetime need.
Always CHALLENGE YOURSELF AND SET AMBITIOUS GOALS. Be realistic--if you know by the end of the summer, there is no way that you could potentially save $1,000,000,000 dollars, then do not set that goal. Always have an end goal, but have smaller goals along the way that you could celebrate when you have achieved them. While setting this goal, keep in mind your expenses. Figure out what can be reduced, or cut. Also have a big enough safety net in which you can plan for unexpected increases in expenses.
Lastly, PROTECT YOUR NUMBER ONE ASSET: YOURSELF. We know how hectic your summer can be. After all, you ARE Brandeisan--one job, one internship, summer classes, and volunteering at the local summer camp, how can you make time to eat, sleep, and shower? Well, in order to enjoy the lifetime luxuries that you are saving up to get, you must actually BE THERE. Please, make sure to sleep 8 hours every night and to never skip out on the most important meal of the day--BREAKFAST. As Mark Twain once stated, "Principles have no real force except when one is well-fed." Savvy Student wants you to know that "Savings can not be made except when one is well-fed" (we like to think we are philosophers)! So enjoy your summer by staying healthy!
Happy Savings,
Savvy Student
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