YouAlberta
Imagine yourself walking down the street, glazing over various cafes and food stores offering quick, to-go meals for your busy day at school. You say to yourself, "Not this time. Maybe tomorrow." You keep walking. In a few seconds, your eyes shut down after smelling that amazing aroma of freshly brewed coffee coming right out of a shop just a few feet away from you. You say to yourself, "Leave it! Just one last time." And you grab a coffee for four dollars. Over a month, you realize you spent over $150 just on coffee. Wow! Want to keep yourself from making these purchases and save a few bucks? Let me share some tips & tricks with you to keep your expenses in check this new year.
Understand your spending habits.
One of the most significant yet underlooked aspects of expenditures is our spending habits or purchasing patterns if you like to phrase it that way. Typically, convenience is one of the major factors behind making certain instant purchases. You are walking past a cafe, and you have a long day ahead of you; you may say to yourself, "I might as well get a coffee. It will keep me going." When you experience such a thought next time, wait and ask yourself. "Do I do this every day or maybe on days when I have back-to-back classes? Is there a way I could prepare before and maybe pack snacks so that I don't need to spend money?" Bulls-eye! Catch your spending habits and understand why, when and where you spend your dollars. With inflation in Canada standing at 3.1% and the rising grocery prices, every dollar counts. Try to save your disposable income wherever you can. Understand your purchasing patterns and break them. I promise you will end up saving a lot over the next few months.
Track your expenses.
According to Drive Research, "on average, people spend $148 on fast food every month." While this is just the average, the actual spending for some can be higher than this, while for others, it can be lower than $148. The best way for you to budget is to track your expenses. I understand it can be a little daunting to see your credit bills and nitpick every single purchase you made last month. However, it is the surest way to realize if you are spending more than what you are making and where all the money is going. Apps like Mint, Goodbudget, You Need a Budget (YNAB) and more can help ease the process (CNBC). You can also use traditional tools like tracking your income and expenditures on an Excel spreadsheet; at least, that's what I do. Find what works best for you, and then consistently track your expenses. It will help you plan your future purchases and improve your spending habits.
Save on coffee!
I love coffee! I also love my savings, but I usually give in when the discussion turns to a delicious mocha with soy milk. It's perfect! According to Made in CA, "coffee is more popular than tap water with over 71% of Canadians drinking coffee regularly compared to 63%" who consume tap water more often than coffee drinkers. "On average, Canadians consume 2.7 cups of coffee every day" (Made in CA). Let's do some quick math. Let's say a medium cup of coffee costs $3. Going along with the average, you would spend (2.7 x $3) $8.10 on coffee every day (assuming there are no taxes), $243 every month and over $2,916 every year! Wow! That is equivalent to two Apple MacBook Airs. You get the point. If you are someone who likes coffee, perhaps investing in a good espresso machine would make more sense. Don't make the mistake I made during my first two years on campus. I spent over $2,000 on coffee in just two years! Try to treat coffee drinking like fine dining. Only do so on weekends or when scheduling a coffee chat with someone. Otherwise, make use of that espresso machine and save a few thousand dollars.
Make a deal with a restaurant!
Now, this trick would be really helpful to international students or students who are away from home. If you see yourself taking out food from McDonald's or your favourite Indian restaurant every other day, this tip is for you. For those of you who stay at home and can relish the freshness of home-cooked meals, keep this tip in your back pocket when you travel or move cities next time. The idea is to strike a deal with one of your favourite restaurants or food stores where you often go. I once struck a deal with a restaurant that serves poke bowls. I told them I was a student and didn't know how to cook. I sincerely asked them, "Would you give me a 50% discount if I grab a Veggie Poke Bowl from your store every evening for dinner." And that was it! They happily accepted a repeat customer, and I saved over $300 every month. If you are someone who usually orders take-out food, try this technique. I am confident you will end up negotiating a deal that will help you save a few hundred dollars. Another good option is checking out the meal plans offered at Peter Lougheed Hall and Lister Centre. For those who stay on the East Campus, it is a great option and will save you a lot of time and money.
Take notes & save on textbooks.
Last but definitely not least is saving money on textbooks. As someone who is now entering his final year as an undergraduate student, I can assure you that I spent a lot of money on books. Try and reach out to your seniors and perhaps students who took the same class last year/semester. Ask them if they could share their notes with you. More often than not, you don't need a textbook for a class until and unless you have certain assignments on the same platform, like McGraw Hill or Cengage. If that's the case, you have to purchase access to the platform, which can range anywhere from $70 to over $100. Nonetheless, try to gather some notes from previous years and wait until the first two weeks of classes before purchasing a new textbook. Furthermore, try to find second-hand textbooks from sites like Facebook Marketplace, the UAlberta app, Abe Books and more. Even better, try to check if the U of A Library has your textbook. You can rent it for a few hours every day and study without paying a single penny. The key is to gain knowledge and do well in your respective class. Whether you do that from a resold book or handmade notes, it should be the quality of the content that leads you to the right purchase and not the aesthetic.
And there you have it! Understand your spending habits, track your expenses, save on coffee, make a deal with your favourite restaurant and save on textbooks. Try these techniques, and I am sure you will have a bigger savings balance in your bank account at the end of the year.