I'm almost at the time where I enter the big bad corporate world. Just this final semester at uni then I'm out of there (assuming I don't fail any).
Anyone have any good tips for saving money, making money, preventing big mistakes (like massive credit card debt for instance) or as such? Maybe it's something lots of people overlook, or something you found particularly interesting which helped you through your first stage of adulthood.
Feel free to share your tips and tricks!!
One of the main things I wish I did sooner was to make saving a habit. Whatever system works for you, stick to it and keep it consistent.
Personally, what works for me is putting a percentage of your take home pay aside as soon as it arrives in your bank account (such as moving it into a high rate online savings account) and not touching it unless absolutely necessary. Start with say 10%, or more if you can afford it. It'll start to compound and you'll be glad you did it down the track.
The idea of "paying yourself first" is one of the main themes of The Richest Man in Babylon (which I recommend everyone should read).
Are you able to create an automatic savings system where a certain amount from your bank account is moved into an ETF such as Vanguard? I was thinking I should start doing something with the little extra money I have an start putting maybe $50-100 a week into a share portfolio
Your income will go up. But that doesn't mean your spending should go up.
A dollar saved is actually MORE than a dollar earned. Because you have already paid tax on the dollar saved.
Is there really any reason to change your spending from your current habits as a student?
Contain your expenses and spending. You will have more savings and therefore more flexibility to do things like investing or travelling or getting into real estate…
DON'T buy phones on a plan. That is extravagant.
I pay $10 a month for my phone bill, which I bought unlocked and outright for under $400. At the other extreme, my friend spends $150 per month on his plan, which he is locked into over 24 months. So over 2 years I pay $640 whereas he pays $3600. That makes me $3000 better off!
OzBargain has actually taught me to refrain from buying bargains. I bought things just because they were cheap but I never used them and they just took up space until I had to move and they had depreciated to the point of becoming junk. E.g. I bought a cheap external hard drive for $150 and after a few years it was practically worthless, think I got $10 for it.
Read through all the past forum discussions
If you didn't mention the word Uni, from the content, I would've assumed you are about to graduate high school.
One advice I can give is to know yourself, know your weakness' and strengths. You've been an adult for a while now (assuming you're about 21ist?), by now you should know your bad habbits eg. poor with organisation or bad with money. Its not a weakness anymore if you can find a way around it or use it in a way that would be an advantage to you.
Tip No. 1 for saving money = Keep Ozbargaining…