College Student Needs Money Now

9 Money Saving Tips for College Students

We all have a limit to the amount of money we have available to spend. The ability to manage your spending is important to achieving financial success. Of course, it's okay to spend money and purchase the items you want when you can afford it. And if you take the time to be a good shopper, your money will go a lot further - without breaking your budget!

More importantly, if you spend wisely and with a budget, you will have more money available to save and invest - which means a brighter and richer future for you, your family, and your friends. That is how you will reach your financial goals and enjoy the things in life that make you feel good. For example, hot tubs don't come cheap!

Here are the top tips to get and keep your spending under control.

1. Shopping for entertainment - It can be fun to window shop, but only if you don't lose control every time you spot a "bargain." If you have the will power, definitely go window shopping and enjoy yourself.

2. Beware the good deal - Buying just because something is on sale is not a good habit. If you have a closet full of clothes with sales tags still attached, pay attention to your spending.

3. Everyday Habits-Small everyday purchases add up more than you may realize. A four-dollar coffee, five days a week, adds up to over $1000 a year in unruly spending. Instead of $1.25 sodas from the vending machine, consider how much you would save by buying a 24-pack and tucking one in your bag every day.

4. Plan your shopping and compare prices as much as possible - When you are not buying on impulse but have been looking to buy a particular item, you can take advantage of discount stores and the Internet for tracking down the best price.

5. Off-season Shopping - Buy your snowboarding gear in spring and your summer gear in winter.

6. Shop with a purpose - Know why you are shopping. Make a list of the items you want so you can save and purchase them when you're able to afford it. Seeing the items you want to work toward can provide strong motivation for you to earn the money necessary to buy them.

7. Be creative - A little creativity goes a long way, especially when you're tight on funds. Instead of paying $140 for designer jeans, spend $30 for discount jeans pay a tailor $10 to add stitching that mimics designer jeans and looked fabulous.

8. Consider the Opportunity Cost of your purchase - The opportunity cost is the cost of something in terms of an opportunity forgone, or what else you could do with the same amount of money. What is the opportunity cost of spending $150 for an iPod Nano? It may be very high if it means you will not have the $150 for something that is more important to you.

9. Keep A Money Diary - Most of us have cash that vanishes each month-to unknown stops for coffee or a quick burger. To understand how you spend your money, write down everything you spend money on: every coffee, every burger, every bus or taxi fare. Keeping a money diary will allow you to take better care of your spending.

The purpose of this is to make you aware of how you spend your money, and it is the first step in developing a budget. This will help you to track all your variable expenses. There is a good chance that after an entire month of doing this, you will begin to think a bit more before you spend.

After 30 days of keeping a diary, ask yourself: what have you learned? Are there areas where you feel you spend too much? This is a good exercise to repeat from time to time as your income and circumstances change. Five years from now your spending habits will be a lot different than they are today.

Now you are prepared to develop a budget. Tracking exactly what you spend is the first step. Fixed expenses-rent, your cell phone bill, and tuition are relatively easy to track. You know what to expect. Variable expenses-meals out, movies, and small purchases can be harder to get a handle on, and that is where the money diary challenge exercise will help.

Since there is a limit to the money you have and you need to live within your means, let's get real about your budget and your finances. Once you master this, saving money to chase your dreams in life will become easier.

Vince Shorb author of 'Financially Free by 30' shows young adults how a simple savings plan can give them the money necessary to invest and retire young. More information about the first multi-media program designed to help young people live the lifestyle they want and a free 5 step video course can be found at www.FreeBy30.com.