4 Money-Saving Rules Every Student Should Live By

4 Money-Saving Rules Every Student Should Live By

Money management is one of the most important life skills. If you approach this, together with how you manage your time, with the attitude of a lifelong learner who wants to improve, you’ll be sure to see progress in all other areas of life too.

The thing most people never take seriously about having control over their finances, though, is that the process must begin today. And if you do that while in college, you’ll be much better off when you enter the real world and can even start dreaming of a secure financial future for your whole adult life.

The very basics of finance, however, boil down to managing your expenses starting today, and also learning how to save, rather than spend.

These eventually become a way of life, and you won’t get into impulse buying, debt, or not knowing where your money goes every month. But students who aren’t forming the right spending habits early on, usually struggle with all of these. That leads to years of stress, financial insecurity, and not reaching their goals or starting the dream business.

Let’s not fall into the trap.

Below are the money-saving rules you should begin following this year, that will help you manage your personal finances well, and will open up opportunities to you that you never thought existed.

1. The law of saving.

Most college students would never ever follow this, as they aren’t really making their own money and thus don’t appreciate the effort put into this. So they just spend without thinking. And, unfortunately, take this habit with them after graduating.

But the very first money-saving rule each and every financial guru will teach you to consider and carefully think through, states this:

‘Pay yourself first.’

It comes from the book The Richest Man in Babylon by George Classon.

What this financial rule means is this: setting aside a certain percentage of what you make (or have, as a college student) each month, and not touching it.

To take this seriously, it’s best to open up a standard savings account and put the money there.

This teaches great discipline that stays with you forever. Yes, you can always withdraw the money and spend it on a big purchase, a short trip, or just nightlife. But by constantly saying ‘no’ to these impulses, you become a saving expert.

It’s a habit that requires willpower, but which can then save you a decade of sleepless nights, knowing you have a certain amount of money saved.

If you’re gonna be asking how much you should save, that would be 10%.

In fact, that’s the path to accumulating riches over the course of your working life.

Brian Tracy suggests you start by setting aside just 1% of all money coming your way monthly though, and slowly get to 2, then 3.

2. Start budgeting.

How to Save Money This Season [Roundup] - let's reach success lidiya k

Budgeting isn’t something adults, or only businessmen do. It’s one of the most crucial money-saving rules to follow and applies to everyone’s financial situation.

It doesn’t matter if your parents are providing for you, that you have little expenses, or a part-time job and some money coming in. The point is to be the one in control of that, and a budget is the first step.

It’s easier than you think. Simply track where your money is coming from (might not need this part if it’s just money transferred in your bank account weekly or monthly by family), and where exactly each dollar is going. That’s key to then noticing some bad shopping habits, or to decide what changes to make when you begin saving.

A fixed budget must become your new best friend.

3. Avoid buying whenever possible.

Most of what we buy isn’t necessary at all. In fact, if you give each impulse buying moment some time, or if you look for other options, you can save a ton of money weekly and still live well.

Here’s what I mean and these must be added to your money-saving rules list that you’ll start following soon:

  • when you need something for just one time, or for a short period of time, borrow instead of buying;
  • when you see something online or in a store that you love, and are ready to make payment right away, don’t. Leave the site, or go home if you’re outside. Give it a few days. Then see if the urge is still there after that. Most often, it’s not and you realize it’s been a sudden craving;
  • if it’s absolutely necessary to buy something, look for used items.

Believe it or not, even successful entrepreneurs are often following such money principles. It’s what has helped them get to where they are, but it’s also a mindset that stays with you forever.

4. Start earning while in college.

If you want to be independent, live more comfortably, and feel better about your financial situation, then it’s a must for you to start making some money right now.

If no one is making you do so and you receive enough money monthly to get what you need, you still need to take the initiative and decide to grow up today, instead of after graduating.

The freedom that you’ll receive feels like nothing else. You’ll be a step closer to living life on your own terms the moment you have your own income.

You might not be familiar with the options, but they are many.

There are a ton of online jobs for students, for instance. Which means you’ll have the change to be at home (even set up a home office and feel like a professional freelancer), have flexible times, and learn new digital skills while doing that.

Over time, you can start something on the side. We live in the best possible time to monetize any passion project you have, or to just begin writing for money, or anything else you feel like doing which people are willing to pay for.

What makes this one of the top money-saving rules, is that you always need to know you have side income coming in every month, to feel secure and to be able to set something aside.

What do you think?

And what’s your opinion on saving money in college? Have you been thinking of doing it? And how bad do you want to be financially stable sooner than others in your life expect you to be?

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How This Family Guy Makes $10,000/Month Online Teaching Others How to Make, Save and Invest Money

How This Family Guy Makes $10,000/Month Online Teaching Others How to Make, Save and Invest Money - Interview with R.J. Weiss from TheWaystoWealth.com

This is an interview-style post with R.J. Weiss from The Ways to Wealth.

Hey R.J. What’s your background and what do you do?

I blog about all things personal finance at The Ways to Wealth.

Before I went full-time into blogging, I spent ten years in the financial services industry. Specifically, helping families buy the right type of life insurance.

During my time with a full-time job, I’ve always had different side hustles going on. From freelance writing, Amazon FBA, conversion rate optimization, to website design — there were many projects I pursued outside of work.

How did you start your career in finance?

I got started in finance straight out of college working for my the family insurance business. As I love the financial planning side of things, I choose to specialize in life insurance planning. This led me down the path to obtaining the CFP® Certification.

What made you start blogging?

The Ways to Wealth, which I started in 2016, has been my 5th blog.

The others mostly fizzled out most due to a lack of interest. But, in 2009 I started a personal finance blog called GenYWealth.com (no longer around) that had some success.

The idea GenYwealth.com was to write about what I was learning about studying to take the CFP®. The blog was, by all means, a success. I was able to gain valuable knowledge, pass the CFP® exam, earn some extra money and build up a good community.

I then took this knowledge and started a business blog, which allowed the insurance agency I was working for to generate leads.

I started The Ways to Wealth because my passion is personal finance–from investing to travel hacking, I love the challenge of optimizing my finances.

How was The Ways to Wealth born?

I didn’t have much of a plan for starting The Ways to Wealth when I purchased the domain name.

I was actually thinking it would be a niche site, which was inspired by Pat Flynn’s niche site duel. Then, I came across the income reports of Michelle Schroeder-Gardner and wisely changed direction to a more traditional blog.

This change came about 6-months after starting to blog.  I did a timeline of the site in one of my income reports.

What worked best when trying to grow the site?

I had a decent knowledge of SEO. So at first, I started growing the site with email outreach. One of the first posts I had about best investing books of all time, had about 15 links to it.

This was nice to start with but was quite slow to build up, as it can take a while to earn Google’s trust.

The big turning point came when I started to understand Pinterest. I spent a few frustrating weeks on the platform, then it finally started paying dividends.

I went from about 100 sessions a day to 1,000, which was huge for me at the time.

How did you get to 3 million monthly viewers on Pinterest?

the ways to wealth pinterest 3 million monthly views

I lay out my Pinterest strategy here. But at the core the idea is to:

1) Write high-quality content that Pinners want to click through, read, and share.

2) Pin to my own and high-quality group boards, with a keyword-rich description.

3) Continue to Pin my best pins across my own boards/group boards, ruthlessly eliminating Pins that don’t perform well.

One thing to keep in mind is impressions don’t mean much on Pinterest. What counts are clicks to your website. So, you want to design not for impressions but clicks.

What aspects of the online business are you outsourcing or automating and how?

The first thing I outsourced was Pinterest design. I’ll design about 30-40 pins a month, so this was big time saver for me.

Of course, it took some work to get going. At first, I hired 5 or so people on Fiverr. I found one decent designer but the work quality deteriorated over time.

I then went to Upwork and posted a job for a  graphic designer. I found a great team down in Argentina, who I’m very happy with.

I’m currently experimenting with working with a ghostwriter. A few of my latest posts have been transcribed from my recording, with the ghostwriter making sense of it all.

I can compile about 3 posts in 90 minutes, then take another 90 or so minutes to prepare them. Saving me around 3-4 hours per post this way.

What’s your main income stream and why do you think it works for you?

My main source of income for the blog is affiliate revenue. It works because the partners I do have are high-quality businesses, who deliver value and solve real problems. This makes it easy to naturally link to such a partner.

When did you start making more than $10K/month and what was the turning point?

My first month over $10K was in January of 2018. In December of 2017, income was around $3,000 and in July of 2017 around $500. So, it was definitely a jump.

What happened then in January?

First, personal finance is at its peak interest in January.

Second, I had multiple Pins go viral.

Third, in November I started driving traffic via Facebook to the site. So, in January I could take campaigns I’d been fine-tuning for a few weeks and scale them.

How do you balance work and family life?

I have a routine I stick to Monday through Friday.

When inside of my designated working hours, I work. When outside of these hours, I’m not.

This is a lot easier said than done. But the thing important for me is not to take work everywhere I go. This means I don’t have any apps on my phone that are work-related (email, analytics, etc..)

What are you 3 best finance tips for newbies?

  • Focus on your savings rate. How much you save is the most important decision you’ll make.
  • Small incremental improvements add up over time. My favorite example is increasing your savings rate 1% every quarter, means you’ll be saving 20% of your income in just 5 years.
  • Study happiness. Become a student on how to increase your level of happiness. The natural result is you’ll want less overtime, making the game of personal finance a lot easier to win.

What books, blogs or podcasts help you stay motivated along the way of growing an online business?

I read a fair amount to keep fresh ideas in my head.

My favorite podcast is The Tim Ferriss Show.

Two blogs I enjoy reading are:

Farnam Street
Barking up the Wrong Tree

And as far as books. I try to read one a week. A few books I would recommend to online entrepreneurs would be:

Deep Work by Cal Newport
The Compound Effect by Darren Hardy
The Four Hour Work Week by Tim Ferriss

Pin this post if you enjoyed the interview.

Check out my interview with R.J. from TheWaystoWealth to see how he entered the finance niche, started making money blogging, began bringing traffic from Pinterest and monetizing it with affiliate marketing, and is now making $10,000/month from his online business. #blogger #interview #blogtraffic #incomeideas #income