Most college students are on a tight budget. They can’t even afford to hire butlers! For the most part, college students are aware of the basic money saving tips like getting a free checking account, buying used textbooks, avoiding the use of credit cards, using coupons, using Skype for long distance phone calls, and so on. Are there any other money saving tips that college students may not be considering? There sure are!

Let’s take a look at a few.

Roommate:

Get a frugal roommate. He or she will inspire you to save money. Disapproving glances, sighs, and frowns will warn you against wasting money.

Entertainment:

Save money on entertainment by making your own silly movies and music videos with friends. You’ll have plenty of fun. If they’re something you wouldn’t want your Grandma to see, don’t put them on YouTube. Also, keep in mind that prospective employers check social media websites.

Stay healthy:

By staying healthy you avoid spending money on doctors visits and medicine. Exercise regularly and wash your hands, especially during the cold and flu seasons.

Haircuts:

Perhaps there’s somebody in your dorm that has a knack for cutting hair. Offer a firm hand shake and a few dollars for the service.

Dating:

If you’re dating someone, have dinner at home. Ask your roommate to hang out somewhere else for the evening, and you can return the favor later.

Movie rentals:

Instead of renting movies from Netflix, borrow them from the local library. Libraries usually have a large collection of movies to choose from.

Free exercise:

Instead of paying money to join a gym, join intramural sport teams. You can have fun and also make new friends.

Text Messaging:

Avoid text messaging. Depending on the plan you have, you could end up paying a lot of money in extra fees. Ask your friends to refrain from sending you text messages since the sender and the receiver are usually both charged a fee. Who needs to read and respond to “What’s up, bro?” fifty times a day?

Oatmeal:

For breakfast, oatmeal is affordable, easy to make, and filling.

Grocery shopping:

Don’t go shopping when you’re hungry. Instead, go when your stomachs’s full and you won’t be tempted to buy snacks and other food you don’t really need. Also, shop for food when you’re short on time. This way you won’t casually go down every aisle and be tempted by all the tasty stuff you see.

Frugal friends:

Hang out with penny pinchers. You’ll be less inclined to spend money on entertainment, expensive restaurants, weekend trips, and expensive clothing. Secretly, drop a penny on the ground and walk away. If somebody picks it up, he or she is worthy of your consideration!

Be a good student:

If you fail a required class, you’ll have to spend money to take it again. Besides, think of how grumpy you’ll be.

Stay busy:

By staying busy you’ll be less inclined to spend money on entertainment and other things you don’t need. You could actually spend time reading the entire used textbook you bought and not just the sections that are already highlighted!

Obscure films:

Save money by seeing independent films and avoiding blockbuster movie theaters. Besides, you’ll have the opportunity to annoy your friends by being a movie snob.

Restaurants:

By avoiding restaurants with waitresses you can save money on tips. Many college towns have restaurants where customers order at the cash register and pick up their food at the counter. Don’t pout just because you can’t flirt with cute waitresses!

Heating cost:

When it gets cold put on several layers of clothing, wear a beanie, and put a blanket on yourself if your just sitting on a couch. You don’t need to saunter or sashay around the apartment in summer clothes during winter.

Share:

Borrow things from other students and let them borrow from you. No, don’t ask to borrow their ham. Clothes and school supplies should be fair game, though.

Gifts:

Make your own gifts. You can make food mixes, cookies, bread, and other things. You don’t have to buy expensive gifts.

Casseroles:

Make a quadruple batch of a large, tasty casserole and put three of the batches in the freezer. On nights when you’re busy heat up one of the batches instead of spending money on fast food, expensive frozen dinners, or other unhealthy foods.

Barter:

Bartering involves trading items you own or a service for another person’s items or services. Craigslist has barter sections, and many cities have local barter groups.

Try to save as much money as you can while attending college. You’ll be glad you did after you graduate!

Brian Jenkins is a resource on a variety of topics related to going to college, and has been writing about them for BrainTrack.com for two years.

photo credit: eric731

The holiday season is a time of cheer, family, and of course, high spending. Yes, it’s that time of year again — the time to break open the checkbooks, fight for position in at the crowded shopping centers, and pray that you still have enough money in the bank to keep the heat on when all is said and done. This year it’s time for a change. Being frugal during the holidays is tough, but it can be done. Below are several tips to help you save money this year and still put a smile on the faces of your loved ones.

Set A Holiday Budget

The single most important decision you can make this holiday season is exactly how much you can afford to spend on gifts. Many people make the mistake of hitting the stores without having set a budget, and this leads to serious overspending. An effective holiday budget should include a total spend number that is set before you even begin thinking about the people you’re buying gifts for.

Once you know what your total budget is, you can begin to divide it among the people on your list. Plan this out on paper, allocating a specific amount of money to each person. Visually seeing what shopping will cost you this holiday season will put your mind at ease and prevent you from going broke at the local department stores.

Decide On Gifts Before You Shop

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Okay, so you’ve got your budget in place and know how much you will be spending on each person. Time to hit the stores, right? Actually, a better idea is to go one step further and pick out specific gifts for each person before you even leave your house.

Sometimes when we don’t know what to get a person, we go shopping and figure well find something they’ll like once we’re in the store. This time of year, the malls are glimmering with huge sale displays, flashy advertisements, and alert sales people all aimed at making you spend more than you planned. If you don’t have specific items in mind, you will be buying on impulse alone, which could easily cause you to spend way over budget.

Use Creative Wrapping Paper

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Of course, presents aren’t the only expense of the holiday season — you need something to wrap them in. This year, avoid the fancy Hallmark gold foil wrapping paper and consider using something more cost efficient. You children and family members are only going to tear it apart as they anxiously open the gifts anyway, so why waste money on it?

If you have stacks of old newspaper laying around, use this to wrap your gifts. Alternatively, you can recycle old gift bags that you received from past holidays. No one at your holiday party will ever stop to critique your choice of wrapping paper when they know there’s a gift beneath it for them.

Use Comparison Shopping Sites

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If you’ve followed the advice above and decided on specific gifts to buy for your friends and family, why not avoid the crowded stores altogether and buy online? Not only will this save you time and energy, you will never be temped to pick up last minute items hanging from attractive looking shelves.

Comparison-shopping websites such as PriceGrabber and NexTag are a great start and could potentially save you hundreds of dollars over retail prices. Simply enter in the items you wish to buy, and the website will scour the Internet for the lowest prices around. You will then have the chance to pick the price you find most reasonable and buy it right there.

Put Up Less Lights

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Electricity isn’t cheap, and leaving bundles of holidays lights running all day and night can certainly be a drain on your utilities budget this time of year. Of course, showing holiday spirit by sprucing up the house with festive illuminated decor is a part of the joy of the holidays, so you don’t want to become a scrooge and leave the lights off all year.

To meet somewhere in the middle, consider putting up half the amount of lights, perhaps by hanging them only on the side of the house that faces the street. Turning the lights off during the day helps to keep the bills down, as do low energy holiday lights that consume less electricity than traditional bulbs.

Try Buying Used

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If you’re on a tight budget this year, consider buying some of your more expensive items used. Many people on eBay and Craigslist routinely sell very slightly used electronics at fractions of the retail price. These flat screen TVs, game systems, etc, may have only been turned on a handful of times and work just as good as new, but because they’ve been taken out of the box, you can get them at a steal of a price.

Of course, you must exercise good judge on these networks, as there are plenty of sellers out to scam unsuspecting shoppers this time of year. Remember the if something seems to good to be true, it probably is. This means that the ultra-wide screen HD-TV selling for $50.00 is probably not the real deal — steer clear of these sheisters.

Avoid Opening Store Charge Cards

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A big temptation around this time of year is to open a handful of new store charge accounts to do the shopping with. It seems so appealing, because you’ll get your shopping done without having to come out of pocket right now. The problem with this approach, however, is that store cards generally carry extraordinary high interest rates.

If you are slow in paying the cards back later (as many consumers tend to be) your gifts could end up costing you double what you paid at the time. This is the trap of consumer debt — don’t be tricked into the illusion. If you can’t afford everything you want to buy, cut your losses and leave, no one will like you any less after the holidays are over.

About the Author: Diane Ferraro is the Advertising Director for Robbins Brothers. Robbins Brothers provides a huge selection of rings so customers can find the perfect engagement ring. Started back in the 1920’s, the core value of the company is still “love the customer.”

photo credit: DG Jones

The transition from full-time student to full-time employee is challenging enough. There’s so much to think about- what are your benefits, how do you choose your health insurance plan, what is a 401(K) or pension, and most importantly, how do you become that standout employee? Compound that with residing New York City (which has an incredibly high cost of living) and working during an unstable economic environment. Pretty soon you can feel like being an adult is just too overwhelming. Though it might be nice to hide under the covers and hope it will all resolve itself, take this opportunity to explore and learn – especially when it comes to your career and your finances.

Many graduates find themselves in entry-level jobs with entry-level salaries. When your cost of living is high, this can create the kind of pressure that might distract you from really excelling in your field or even tempt to go for a higher-paying but less-fulfilling job. Therefore, the primary financial goal of any new graduate-turned-employee should be to live below your means. Part of living well involves having a reserve of money that is available in case of emergencies. That way when unexpected financial situations arise, you can still sleep soundly and be rest assured that you can make it out financially intact. It’s clear that the recession has taught our generation that you can never feel too confident about any investment decision (in stocks or with real estate) and that it is best to always have a backup. With that said, there’s no reason you shouldn’t be able to enjoy yourself and take advantage of living in New York or any major city.

Part of doing so requires creating a monthly budget based on your current stream of income. Create categories for both absolute necessities and discretionary spending or you can decide to clump discretionary spending into one category. Bear in mind your list of absolute may differ from someone else’s, which is completely appropriate. The whole point is to have a plan that works for you. My budget includes the following categories:

I’ve also included a summary under each category of what I learned while residing in New York City, in order to ensure that I met both my budget and my ability to live comfortably. Though I live in New York, a lot of the things I outline below are applicable wherever you live.

Savings/Loans

Money that is not a part of your monthly budget should be directly transferred to a high-yield savings account. Ideally, this should be an automatic transfer that takes place immediately after your paycheck is deposited, as a means to avoid the temptation to spend the money. This will become your reserve money for emergencies or long-term financial goals. Be sure to choose an account with no fees, no minimums, and few restrictions to allow for easy maintenance. You shouldn’t devote your valuable time or energy to keeping track of these types of numbers.

On the topic of loans, I believe that if you have any outstanding loans, make it a priority to place that as a separate category on your budget and contribute a fixed amount of money every month to paying it off. It may seem overwhelming, but paying off a little at a time is the first step. The more you can contribute to paying off the loan, the better. If you can only contribute the minimum each month, so be it.

photo credit: WanderingtheWorld (www.LostManProject.com)

Rent

Beyond doubt, the most expensive expense you’ll have in New York City is rent. Luckily, the city offers a bountiful supply of options. The general rule-of-thumb is that you pay for your location. If you feel more comfortable in a more central or pricier location, you might have to compromise by either choosing a bare bones apartment or living with several roommates. Research the area that you choose to reside in, always take safety into account, and thoroughly investigate your apartment (and your roommates) before signing the lease. Finally, make sure that it is an apartment that you can afford, while living comfortably.

Utilities

For utilities, generally speaking, the more roommates you have, the cheaper your monthly utility bill will be per person. This is because for utilities, such as internet and cable television, you pay a flat monthly rate. Electricity tends to become the biggest utility expense every month. You want to have candid discussions with your apartment about this. For instance, have a roommate agreement to turn off lights or leave chargers unplugged when not in use. In addition, bear in mind that summer months will be more expensive than any other season due to air conditioners and fans being in use. Also, sign up for direct payment or e*bill payments with your utility companies to ensure that you won’t pay another late fee again.

Transportation

Luckily, transportation costs are incredibly predictable compared to other expensive cities where public transportation is neither accessible nor reliable. If you live in the city, pay for the unlimited monthly metro card for $89. It’s worth it. Also, take advantage of any programs your company offers regarding transportation (for instance, subtracting transportation costs prior to tax calculations known as TransitChek).

Groceries

It’s incredibly important to research the grocery stores in your area. Your grocery costs completely depend on your dietary habits. The more restrictive your preferences, the more expensive your monthly costs will be. Some good options in the city are: Trader Joe’s (for organic), Met Foods (for food staples, such as rice and pasta), and Fairway (for produce, fruits, and some brand name products). Rite Aid and CVS offer tons of deals for household needs, including soaps and toothpaste. You can check their respective websites for their weekly deals. Checking the website once a week ensures that you won’t have to pay full-price for necessary household products. Finally, if you’re not picky, fruit stands on street corners and in Chinatown offer terrific deals on produce.

Clothing

New York City consistently has an abundance of clothing store deals. Browse the web for sample sales and store deals. Thrift stores can also be a great bargain. Generally, the best times to garner the best deals are after the season. For instance, buy summer clothes at the beginning of fall or winter clothes at the beginning of spring.

Gym

Gyms are expensive in the city. Central Park and Hudson River Park are always good and cheap options for running and biking. However, if you decide that a gym is necessary, know that it is cheaper to sign-up during promotional events (generally in the spring and fall) and to pay for only one location. In addition, if you are able to pay for a whole year at once, you should receive a significant discount. However, be very cautious when choosing this option and really weigh whether the discount is worth the lack of flexibility because refunds will not be granted.

Entertainment

The city offers an abundance of entertainment options. There is an incredible assortment of free events, especially during the summer at Bryant Park and Central Park. The Skint website is a website that lists the free and cheap entertainment events around the city, and is updated on a daily basis. Likewise with restaurants, there is an incredible assortment of delicious food at reasonable prices-a little bit of research can go a long way.

Retirement

Finally, I personally believe planning for retirement is incredibly important and it’s a well-known fact that starting early will reward you later on. If your company does not offer a retirement package, look into opening up a Roth IRA account. If your company matches your 401(K) to a certain percentage, take advantage and contribute up to that percentage. The maximum annual contribution for those under the age of 50 is $5,000 and unlike a 401(K), it offers qualified withdrawals, such as the option of a one-time $10,000 maximum withdrawal for first-time home buyers. You can contribute to both a 401(K) and a Roth IRA up to a certain income limit.

Living in New York City is incredibly expensive. However, by knowing your budget, cutting down on impulse spending, and choosing your expenditures carefully, you can definitely manage to live in the city comfortably.

photo credit: Yoav Lerman

For many years,  Americans have been lying to themselves about their debt situation.  Reckless purchases of the elusive “Wants” and trying to maintain lifestyles that were undeserving.  With widespread concern about the value of homes, rising health care costs and the general outlook for the economy, now more than ever, Americans need to set a new course with regard to managing their household finances.  It’s time to take accountability for your own actions and come to grip with the uphill mountain of debt that faces you.  Are you one of these statistics?

It's time to eliminate debt!

Give Me The Facts

There are two stories of debt in this country. Today U.S. consumers are carrying more than $900 billion in credit card balances.

1. The average credit card debt load is $9,659 per household.
2. Of cardholders carrying debt, more than one in 10 say they carry credit card balances in excess of $25,000.

The other describes an America that is facing reality and trying to do better:

• Half of Americans confess to being “concerned” or “extremely concerned” about the amount of credit card debt they have.
• Most U.S. households have no credit card debt; about 25% have no credit cards and an additional 30% of households pay off their balances every month.
• Three out of four Americans (74%) envision themselves being completely debt free at some point in their lives.

If you are ready to face up to your own financial realities and set a plan of action, the time to act is now. With a measure of self-discipline and a positive attitude, your financial picture can potentially change for the better in about six months.

The following three-part strategy may help you control your cash flow, pay off debt and encourage saving so you can handle the unexpected expenses that may have gotten you into debt in the first place.

Get On Track

As a first step, keep track of your typical expenses for one month or so to find out where your money is going. Also figure your unexpected expenses for a year’s time—auto and home repairs, gifts, vacations, etc.—and divide that number by 12. Once you have a record of your spending, compare your monthly outlay to your monthly income. If you have a surplus, this is the amount you can apply each month to paying down debt and building savings. If you have a shortfall, you’ll need to cut expenses.

Time To Build

A key to establishing good saving habits is to make saving even easier than spending. Here are some tips.

Set up three savings accounts with goals attached to them, and then ask your bank about linking them to your checking account via an ATM card. Accounts may be labeled similar to the following:

1. “Cushion” for emergency cash
2. “Expenses” for unexpected bills
3. “Investments” for investing

Whether you have direct deposit of your paycheck or you receive your paycheck in hand, keep only what you need to live on for one month (or two weeks, if you get paid every two weeks) in your checking account. If you leave more in checking, you’ll probably spend it. If you can, put money equivalent to one month’s expenses into your “expenses” account for unexpected bills. The idea is to build at least a small stash so you’re less likely to use your credit card if your car needs a new tire. It may be even smart to set up a joint savings account.

Begin building your emergency cushion by depositing a portion of each paycheck into your “cushion” savings account. If your goal is to have three months’ living expenses, you could reach your goal in 30 months by saving 10% of each month’s pay—or in 15 months by saving 20%.

Put whatever is left into your “investments” account, including found money such as birthday and holiday checks, bonuses or money made from a garage sale. If you get a raise, put the difference into this account on a regular basis.

Go On a Debt Diet

Paying off debt is easier once you stop using your cards. There are different ways to approach this.  One manner is to pay off your highest interest credit card debt first, making sure you avoid the “minimum balance trap.” Because credit card companies make their money from interest payments, they purposely set those payments low so it will take you years to pay off the balance. Paying more than the minimum can make a big difference.

Assume you have a balance of $5,000 at an interest rate of 15% and you make the minimum monthly payments of 2.5% of the balance or $25, whichever is greater. It would take you 183 months to pay off the debt and cost you $4,395 in interest. However, if you were to pay an extra $150 each month, you would pay only $845 in interest over 27 months. This is a hypothetical example for illustrative purposes only.

Another example is implementing the debt snowball approach.  This method involves paying off the lowest debt balances first, in order to achieve some sort of accomplishment on your long  journey.  Either method, as long as its applied and followed with strict discipline, will yield successful results.

Consolidate your debt by transferring outstanding balances to lower-rate cards. If you don’t want to transfer your balances, chances are that your current credit card company will match the interest rate of a competitor. Just be aware that some of the low rates available are “teaser rates,” which only apply during the first 6 to 12 months you have the card. Cancel your old cards so you won’t be tempted to use them again or leave them at home unless you really need them.

Set up a realistic payment timetable and stick with it. If you need to readjust your timetable, do so. If you have trouble, talk to a professional. The counselors at the nonprofit National Foundation for Credit Counseling can develop a more structured plan for you, if needed. To find the nearest location, call 1-800-388-2227, or log on to www.nfcc.org.

Put Time on Your Side

You may not be able to solve your debt problem overnight, but you can solve it over time. Not only will a combined debt reduction and saving strategy begin to lighten the load now, it will help you feel better about your future.

by evilsigntist