Monday, August 16, 2010

Making Money by not Wasting it

Benjamin FranklinImage via Wikipedia
Everyone has heard Ben Franklin's saying, "A penny saved is a penny earned." And I think most people would agree that its true, even if we don't always live by that simple rule. Part of it I think is that we associate new, expensive stuff with prestige. Our society certainly does its best to broadcast that message. Also, some of us consider retail therapy a valid solution to our problems. But the reality is, wasting money does not make you any richer. In fact, people who became rich most likely got that way by living like they had no money. So here are some basic tips for saving money:

  • Don't pay for something if you can get it for free. Especially if you are already paying for it, such as printing paper in your school library. Are you applying? Some schools will waive the application fee, so keep a look out for what you have to do, whether its applying online or talking to  representative at a graduation fair. Does your friend have a new DVD that you've been wanting to watch? Borrow it first.
  • Always ask if what you're about to buy is a luxury or a necessity. And be honest: for example, if your school has a good public transportation system or everything is within walking distance, a car is a luxury.
  • Calculate all of the costs associated with a purchase. Does that shirt say its dry clean only? How much is shipping on the online order?
  • If you are saving for something in particular, say, study abroad, keep a picture in your wallet or purse that you can look at anytime you're about to buy something. This will make you think twice.
  • Don't be afraid to buy used. Consignment shops are best if you are picky. Here is an example of one with top brands.
  • Brand names are hardly ever better than store brands and can lead to big savings.
  • Do not spend beyond your means.
  • Know when it is best to spend extra. If you are shopping for a new laptop and spending an extra $100 means the computer will last all the way through college instead of breaking down halfway through, you could be actually saving as much as $400. Think long term.
  • Remember, time is money. This is a good motto to remember when you want to be generous. If you want to make a donation to a worthy cause, consider volunteering rather than giving money. When gift giving season comes around, think of who would appreciate your time. Grandam might prefer you spend the day with her organizing photos over a gift. Perhaps you could tell your brother you'll baby-sit his kids one night for free.
Inspiration for this blog came from:

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1 comment:

  1. these are good tips! I wish i had them when I was in college---but they are still helpful now even though i'm a graduate!