As I embark upon my first week of hardcore saving-ness, I've stumbled upon an incredible set of principles to live by when you're trying to save some moolah:

1. Spend less than you earn.
2. Make the money you have work for you.
3. Be prepared for the unexpected.

This awesome list is elaborated on over at Mint.com.

As a college student, I definitely think the most important principle is to spend less than you earn. This seems obvious to some people, but you'd be surprised! Let's say for simplicity's sake you make $500 a month. If your cost of living (rent, gas, food, cell, ect) is $400 a month you have $100 left over to do what you need to do.

This sounds really easy, but you can get lost in the breeze if you can't keep track of what your expenses are. So! Here's the model that I live by - adapt it however you want.

Step 1: Once you get paid, assess how much money (income) you have for the month.

Step 2: Estimate what you'll need to spend in order to live - your necessities (rent, cell, food, whatnot.) Give your self a budget for how much you'll spend on groceries, gas, etc.

Step 3: When you see what is left over, half that and put it in your savings.

Step 4: Use the other half of the money for some wiggle room funds, or toss it into your savings. With your wiggle room money, you can save up for something spicy you want to buy, or use it for unforeseen circumstances.

Sound good? Do you have a better way of managing your finances?

I totes want to know. Put it in the comment section, yo!

DeAndre'

blog comments powered by Disqus