Saving money is a relatively new phenomenon for students in
a bad economy. If you are just getting out of school, you will likely have many
debts as well as many new expenses. Here are three tips to start saving money
so that you can dig yourself out of that financial hole.
Make it a Priority
First of all, you must make saving money as important as
paying taxes and bills. The best savers in the world adhere to the strategy of
"pay yourself first." This means that you should set aside money
every month to save just as money is set aside to pay bills. Many financial
experts recommend saving at least 10% of the gross monthly income.
There is a great deal of psychology behind the paying
yourself first motif. Savers pay themselves first because they would not pay
themselves at all were they to wait. Saving money at the end of the month is
about as easy as leaving a single potato chip in the bag.
Seek out Help
Secondly, get the help that you need in order to stay ahead
of the curve. Many people realize far too late that professional financial
assistance is a great help in saving money. Companies like HigherOne.com are
far from a ripoff for students; rather, they bring a
great deal of experience to the table. Students will benefit from the
mentorship of individuals who have been through similar situations and come out
the other end successfully.
Make it a Commitment
Lastly, make a commitment to save no matter how small of an
income you may have. This is an essential point to start saving money. Students
who are just coming out of school cannot expect to have a large income. Some
students put off saving until they achieve a certain level of income. This is a
mistake.
Because of the compounding nature of interest in fixed bank
accounts, the amount of time that money is left in an account is much more
important than the amount. A person who begins saving at age 25 will need to
amass around 40% of the money that a 35-year-old saver will need in order to
retire at age 65 with the same amount of money in the bank.
Anyone who begins saving early, saving first and gets
professional help will more than likely achieve their financial goals. Start
today in order to create the most leverage for yourself. There is no reason to
wait!
Do you have have any questions or suggestions? Write in comment section.
