Figuring out how to secure your financial well being is one of the most important things you can do for yourself.
For the majority of people, the way to gain financial security is by saving and investing. As a college student, these are likely topics that are not on your radar at this moment in time. Saving is a key principle! If you make saving a habit, even if it’s a small amount, you are building a foundation for financial success.
Here are some tips to get you started:
- Pay yourself first! You’ve probably heard this before. This means that for every paycheck you receive, you commit to putting an amount (even a small amount) aside in a savings account. The most effective way of doing this is by having your paycheck directly deposited into an account and then set up an automatic transfer, with your financial institution, into a separate savings account.
- Keep track of your saving. People who track their savings tend to save more because it is always on their mind. With online and mobile banking, as well as a variety of apps, there should be no excuse not to know exactly how much money you have.
- Set goals. Setting financial goals is a key component of staying on the path to getting what you want. As a student, you may have very limited financial goals, but this is the perfect opportunity to practice the process. Think of this scenario: You are periodically putting money into savings from your summer job in order to pay for personal expenses for the coming school year. How do you know if it will be enough to meet those expenses? By the beginning of the school year?