5 Money Saving Tips to Live in Edinburgh as a Student
Most of the students may be working part-time or starting their careers when in a new city. Just having a first real paycheck is a big deal. You should not be hard on yourself. As said, saving more money now can have a profound impact on one’s financial future and also save habits you learn can have a lasting effect on one’s life. Here are some of the right tips and tricks that can apply you to start saving.
Create a budget
No matter what is your age, having a budget is important since it will provide you with an accurate look at your finances at any particular time. you need to start by tracing the expenses for a few months. What you will want to do is to write down or log everything that you want to spend. By doing this, you can understand precisely where your money is going. You can quickly realize you are spending more than you would on things that you do not need. But by cutting these out, you can easily put more towards things that matter to you the most.
When it comes to creating your budget, you will want to list your after-tax income at the top. You need to follow your fixed expenses such as the rent of the student accommodation in Edinburgh, groceries, student loans, and more. Below that, you need to list out all the limits for fun things such as entertainment, takeout, or even gifts. Having a budget can help you make adjustments, ensure that it is realistic, and take your lifestyle into account. No one is expecting you to stay on budget every month, however, you need to keep you on the right track.
Create an emergency fund
With a budget in mind, you can consider keeping it in your mind. What this means is that you can build savings, like an emergency fund, retirement savings, or down payment for a home, right into one’s budget. If you prioritize them as one of your fixed expenses, you need to pay yourself first since you are putting savings ahead of your fun expenses.
Avoid debt
Generally speaking, you need to avoid any debt as much as you can since the interest payments you will be making can set you back. The one exception to this rule is student debt, where the hope is that higher education which can lead to higher income. Credit card debt is generally one thing many new graduates struggle with. While there is no denying that the convenience of credit cards, the interest rate can exceed 20%. It is really difficult to save money when you can pay that much interest. There is nothing mistaken when using a credit card. Ensure that you are paying off your full balance by the statement due date. You should also find student apartments in Edinburgh which are cost-effective.
Look out for excessive fees
Once you have graduated, you can realize the fees that can creep up on you. One important instance is banking fees. As a student, such fees are generally waived. However, once you have graduated, you can transition to regular bank accounts that come with the monthly fees. These fees can easily add up and that is why you will want to see if there is any way to get your account fees waived by maintaining a minimum balance. You can also consider switching to no-fee online banking. This way you can manage your money from the comfort of your student housing in Edinburgh.
Take benefit of the employees
If your employer offers them financial incentives as part of the overall compensation package. It is in your best interest to take full benefit of it. One of the most important advantages is a defined contribution pension plan. This is where your employer can match the retirement savings contributions by a particular amount. For instance, you can match up to 2% of one’s salary.
The Bottom Line
When it comes to saving money, you need to find what works particularly for you including the rent. Vita Student Fountain Bridge Edinburgh is one of the best and most affordable accommodations. The tips mentioned above are one of the best starts. you can easily consider shopping around, buying used items, or starting a side hustle to save money. The key point is to think about what your goals are for the money which you have saved. This can be buying a house or taking a vacation. You need this objective in place as it can motivate you on your journey.