One common theme in personal finance literature is that saving money is not easy. It seems like saving money is like exercise; you don’t always want to do it but it’s extremely rewarding.
While some of my classmates dread the burden of student loans, I rejoice in the fact that after graduating I might never have to deal with tuition woes again.
Sometimes I find comfort in this because I’ve been paying more than $20,000 a year for tuition alone as an International student at Carleton University.
I used to use the excuse that I do not make enough money to save, but now I’ve gotten in the habit of saving money and setting short and long-term saving goals.
The habit of saving money
Chinazom Chidolue graduated with a Bachelor of Commerce in Accounting in 2015 and now works for a top accounting firm in Toronto, but she admits that she was never really a money person. In other words she used to spend a lot.
Her advice is simple, “start small and start now.”
“If you make it a habit now it will be easier when you do start making more money,” she said.
Chidolue doesn’t have student debt either, but she understands the road to financial independence is a difficult one without the right advice. So she started a blog, Investment Conversations to provide a platform for other young people to start taking better care of their finances. Through this website, she hopes to inspire young people to demystify personal finance.
Setting savings goals
“You have to have a purpose,” said Bridget Eastgaard, the brains behind the personal finance blog, Money After Graduation.
“Transferring money into a savings account just to have it isn’t very motivating.”
Five years ago she owed $21, 000 in student loans when she graduated from university and had no savings at that time. She started her blog to keep track of her debt repayment and be accountable. She now has an MBA in finance and she helps other young people learn how to manage their money as her full-time job.
Her go-to savings advice is setting savings aside automatically with every pay cheque.
“If you get paid every Friday, set your savings to happen every Saturday,” she said.
“It happens without you thinking about it.”
Keep calm and save money by practicing these simple tips to nurture the habit of saving!