Master the art of living on less
Sandipa Newman
Issue date: 11/5/09 Section: Life
With classes, homework, sport practices, club meetings and social lives, squeezing in room for a job can be difficult, which is why most students work on a part time basis if at all while in college. Whether you've opted to work during the school year or you have a part-time job, learning how to live on less will improve your college experience.
So, if you've ever worried about how you're going to afford bills and make it to the next pay day, or loan cycle, the following are tips to put your worries at bay.
Get organized.
First and foremost, take inventory of all bills you have each month, or an entire semester depending upon how long your funds have to last until more come your way. Don't forget to include items such as car insurance, which aren't a part of normal monthly bills. Whatever you have left is what you have to live on. Is this amount shockingly small? Keep reading.
Weigh the difference between wants and needs.
Ultimately, the key for successfully living on a fixed income is to stay within your means and, to do this, you have to determine the difference between needs and wants. I know this is usually easier said than done, but the next time you're tempted to buy something you really don't need, think about how long it would take you to earn cash for that purchase. For example, if you want to purchase a new $20 DVD and you earn $8 per hour at your job, is this DVD worth working almost three hours for?
Time to live frugally.
Always be on the lookout for coupons and sales. Also, look to cut out unnecessary expenses such as a cable bill or eating out. If you have a roommate, split living expenses whenever possible. Make sure utility, rent, cable and other bills are split evenly and that your roommate is keeping up with the payments for his or her half.
Dip into the right accounts.
If you do find yourself needing some extra funds, pull from your savings account prior to dipping into any money invested in CDs or prior to getting your credit card out. If you do end up pulling money out of your savings, take a look at your budget and find areas where you can make some temporary spending cutbacks, so you can put money back into your savings account.
Don't be afraid to call in the professionals.
Whether it's a week, a month or a semester, making funds last while living a fixed income, or in some cases no income, can be difficult, so don't be afraid to meet with a local banker who can provide you with options that will help you better manage your funds. A banker can also offer ways to make your money work smarter for you during a time that you're normally strapped for cash.
So, if you've ever worried about how you're going to afford bills and make it to the next pay day, or loan cycle, the following are tips to put your worries at bay.
Get organized.
First and foremost, take inventory of all bills you have each month, or an entire semester depending upon how long your funds have to last until more come your way. Don't forget to include items such as car insurance, which aren't a part of normal monthly bills. Whatever you have left is what you have to live on. Is this amount shockingly small? Keep reading.
Weigh the difference between wants and needs.
Ultimately, the key for successfully living on a fixed income is to stay within your means and, to do this, you have to determine the difference between needs and wants. I know this is usually easier said than done, but the next time you're tempted to buy something you really don't need, think about how long it would take you to earn cash for that purchase. For example, if you want to purchase a new $20 DVD and you earn $8 per hour at your job, is this DVD worth working almost three hours for?
Time to live frugally.
Always be on the lookout for coupons and sales. Also, look to cut out unnecessary expenses such as a cable bill or eating out. If you have a roommate, split living expenses whenever possible. Make sure utility, rent, cable and other bills are split evenly and that your roommate is keeping up with the payments for his or her half.
Dip into the right accounts.
If you do find yourself needing some extra funds, pull from your savings account prior to dipping into any money invested in CDs or prior to getting your credit card out. If you do end up pulling money out of your savings, take a look at your budget and find areas where you can make some temporary spending cutbacks, so you can put money back into your savings account.
Don't be afraid to call in the professionals.
Whether it's a week, a month or a semester, making funds last while living a fixed income, or in some cases no income, can be difficult, so don't be afraid to meet with a local banker who can provide you with options that will help you better manage your funds. A banker can also offer ways to make your money work smarter for you during a time that you're normally strapped for cash.
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