The combination of student loans and the ease of online shopping can make it very easy to splash the cash whilst at university. In this post I will be talking about why starting to save early could really benefit you in the long run.
Lets your money do the work:
If you keep cash in your room it doesn’t do anything for you, but if you instead have it in a savings account the money could generate more money itself. This is called compound interest, where you not only earn interest on what you put into the account but also on the money you get from the previous months interest. This is rewarding too as the earlier you start, the more you save, and the more you get back from the bank for free in interest!
Gives you more options:
Getting your dream job after leaving university would be great but what if it happens to be in another city or area? Having savings when you leave university can allow you to relocate or buy a car to commute. If you don’t have these savings you could unintentionally be restricting your own options when it comes to getting a graduate job.
Allows you to live the life YOU want:
Borrowing money from a bank, family or friends means that you are tied to them and that you owe them something. Would you not rather live your life the way you want instead of needing to borrow if something unexpected happens. Having savings allows for more freedom as if you want to relocate, travel or take a break from work, you can without being tied into anything!
It gives you a back up plan:
Recent years have shown us that life can be extremely unpredictable. Saving early gives you support is something unexpected happens. You could separate from your partner and need to urgently find somewhere else to live, decide your job really isn’t working for you and you need to leave, or maybe you get an amazing job offer somewhere else in the world but you need starting funds to be able to relocate. In all of these scenarios saving early allows you to be able to do what you need to do to keep life moving without being held back by borrowing or lack of funds.
Post uni life transition costs money:
We may wish that after uni we could just waltz into a dream house with a new job and a great life but unfortunately things are a little more complex. What about the down payment for that house? The new wardrobe of clothes suitable for your new job? Don’t forget about potential relocation fees too. There are lots of things you might not think about whilst at university, but having savings put aside can really help put you in a good place when you graduate. The best way to do this is to start early!
Creates good habits early:
Most people find that the hardest part of saving is starting. Creating good saving habits early can really help you in the long term because putting aside a small amount of your student loan or wages every month will allow you to realise it possible to save and still have enough to live a happy life. This then will mean that when you get your first postgraduate job and you have more money coming in that you are in the routine of saving and you know it can work for you.
Saving can seem really daunting at first but there is lots of support and guidance out there. If you are interested in saving why not reach out to your local bank branch and see what services and support they can offer to help you. The university advice service is fully equipped to help too, and more information on what support they offer can be found here.
Thank you for taking the time to read this post I hope that it has helped you realise some of the benefits of saving early! Good luck with your saving!
“It’s not about how much money you make, it’s how you save it that matters”
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