Savings

Saving is the conservation of money. Methods of saving include putting money aside in a bank or pension plan. Saving also includes reducing expenditures, such as recurring costs. In terms of personal finance, saving specifies low-risk preservation of money, as in a deposit account, versus investment, wherein risk is higher.

Saving is different to DEFERRED SPENDING. This is a concept that I had not thought of until this course. Real saving is when you never plan to spend that money. Saving for a holiday is deferred spending as you will eventually spend the money.

I realise I have only ever done deferred spending. A scary thought. I also realise that with my situation, I won't be able to begin building real savings until after I finish my degree this year. I will also need a savings buffer of $10,000 in case of emergencies. I won't have that by the end of this summer. I am aiming for a $2500 buffer amount for uni which I believe will get spent as Centrelink Austudy and rent assistance will not cover my bills and accommodation expenses.

Thus most of my savings thoughts are for the beginning of 2011 when I will earn a full time salary. I plan to live in Perth next year with my parents to eliminate the cost of rent and most bills as my parents will subsidise my living expenses. However, I aim to give my parents half my wage to help them reduce their mortgage costs.

The most important aspect of saving is knowing your limits. I need to relearn what is a "need" versus a "want". I need to be SMART (Specific Measurable Achieveable Realistic Time). I also believe contentment in life is important. You can't measure happiness and someone who earns more money is not necessarily more fulfilled in life.

Ways to save as a student:
- Shop at ALDI for groceries with a weekly shopping list. NO IMPULSE BUYS!!
- Go to the gym often, thus using up some of your time that you might use to go spend money.
- Make lunch for uni every day.
- Reduce going out and only take the amount of money you are willing to spend in your wallet. Leave all other means of obtaining money at home.
- Borrow movies and books from friends, thus not having to pay for entertainment.
- Use the University library for all internet purposes, thus not having to pay an extra bill.
- Pay with cash, then you know exactly how much you are spending.
- Don't use shopping as a hobby, find other activities that take up your time.
- Shop around and WAIT FOR SALES!
- Go to the Fruit and Vegetable market to buy fresh produce for the week as they are normally much cheaper.
- Borrow friend's textbooks who have already passed the course to reduce uni costs
- Have a cup of coffee at home before you go to uni
- Collect coupons and follow the weekly sales at the grocery store
- Kick the bottled water habit; support your local tap water and drink for free.
- Pick up a local newspaper and check upcoming events for freebies: concerts, arts and crafts fairs, theater, festivals, art galleries, and museums.
-If you have to shop, make sure you patronise places that offer student discounts.
- Buy in Bulk.
- Try to get an appartment which is close to campus to avoid paying travel costs.
- Communicate via email, thus saving texting fees.
- Use skype to skype as this is FREE!!
- Go to the uni hair dresser for a haircut - only $30!!
- Take hand-me-downs!
- Have a pre-paid mobile.
- Eat less meat, meat is expensive!