Priorities in Money Management as a Student

Money is extremely important in each individual’s lifestyle as it makes them independent, have more control over decision-making skills, more freedom to do what they want and can fulfil and accomplish their long-term ambitions. An individual with great wealth is able to get a rich education, be safeguarded with a protective health care system, have minimal worries for financial needs, and be able to give to your community. Most importantly, money provides you with your own freedom and choices and lets you enjoy life to the fullest. The importance or value of money has different perspectives in different lives. Some people may believe a middle-class lifestyle is fair as you have sufficient access to necessities and a decent amount of income to afford more than the basic needs. Generally, accomplishing both financial and lifestyle goals is to ensure you have great education to obtain a highly satisfying career.

A few reasons I want to increase my savings is for: university education (I want to gain the highest knowledge and understanding in the area of my degree with the best resources to do exceptionally well in my field thus I want to obtain the most amount of information I can with taking as many courses possible), vacations, (I want to be able to go to cities that are on my bucket list, that is only possible from saving money from the start and eventually earning my way there), and lastly I want to save money to make a down payment for an apartment. I will work harder and be even more determined to achieve these goals on my own and with some help from my parents as they provide me with a monthly income to afford my living standards here in Canada.

I want to bring and invite my parents to visit me and be able to live in a two-bedroom suite and that is only possible if I buy an apartment on my own. I make $2000 from my job in a month and will keep aside $500 from my own pocket for my own expenses and save the rest of my money for my saving goals ($1500-work + $2000-parents). Saving money aside is essential in today’s society as it: provides financial security, avoids abrupt spending habits, future investments, helps in down payments, and lastly finances further education.

It is significantly important to measure your progress when achieving a goal within a certain time frame. It encourages you to continue with the smart decision-making skills and further the actions that are playing in effect to obtain those ambitions. When one is making the correct progress, both confidence and motivation grow and build up. It will provide you with the motivating/directing factor to be able to perceive that goal in reality. If you are falling behind or lacking down in something you are able to pinpoint and identify the change that needs to be taken and implement them.

The first step to measure your goal is to quantify your progress.The paycheck I receive is $2000 every month. I should first take $1500 and directly deposit it into my bank account and take the receipt I receive after the deposit and store it in a filing box to keep track. With the money left over I should tally down my personal expenses and determine how much I can use everywhere else including; groceries, shopping, utilities, or personal commitments. It is important for me to stay organized, focused, and prioritize my goals to maximize my productivity. If there are certain events or particular items I want outside of my expense money I should avoid spending extra money from my savings account.

As this would affect my goals I want to accomplish within a certain time frame I have carefully revised and considered over. I keep a personal record of all my expenses and my money going in and out on a separate notebook to refer to at all times. In case I have an emergency that arises, or something has to be done differently in response to my savings plan I would be able to look at my notes and understand why it was modified. The notebook includes all information and recorded records that provide me with the knowledge of what worked out, what changed, or what was done differently to execute the best savings plan to achieve my goals within the 4-6 weeks.

My notebook includes a breakdown list of the regular payments I cannot avoid on a monthly basis in a fixed amount, a needs list that varies per month such as groceries, travelling fees, and other necessities, and a wants list which includes items I can potentially buy if I have money left over from my spending. My savings goal is dependent on my current income, how much money I have now not on how much money I will have in the future. Having attainable standards or goals provide a purpose for you to spend your money well. The top three realistic goals I am wanting to save for is my university education, being able to travel, and lastly to make a down payment for an apartment. Being aware that I have certain goals in my heart allow me to work towards achieving them to my best potential to then see the results factoring in.

Personally, I believe achievable/attainable goals for saving money within the 4-6 weeks is if: you are realistic about your household expenses and ensure you can put aside a set amount of money into your savings account for the long term, breakdown a chart that includes regular payments, needs payments, and wants payments and identify where to place your expense money, understand the system of cash flows, review everything you are putting your money towards, and lastly is to review expenses that can be lowered down to enhance a greater savings amount every month. Attainable goals are only ever achievable if you are making a list of them, creating the time and opportunities to make them happen, and giving your 200% to ensure you do whatever it takes to accomplish them to bring out personal satisfaction.

One-way to ensure I am action-oriented to my goal is to keep a limited amount of money in my wallet. If I know I only have so much money to spend on my expenses I will be able to review all of my spending actions and think twice before buy-in something that may be a want rather than a need. The second action-orientated method is my direct savings account in which money is directly taken off from my paycheck and automatically deposited into my account from the beginning.

Thus, making it evident that I only have so much money to spend on my expenses and making sure I do not go over my spending every month. These action-orientated goals ensure that my goals become reality and continue my motivation. Personally, I feel the three goals I have mentioned and would like to reach are reasonable. If I put in my effort, give my 100%, and work hard I can accomplish them. However, I will have to be far more cautious and aware of my spending habits. A few ways that could make saving my money more relevant/realistic includes: recording all my expenses and making note of it, budget for savings, minimize spending costs to my best ability, decide on what my priorities are in the long run and allocate my savings towards them, have automatic savings which puts aside a certain amount of money directly into the savings account, and check progress every month to ensure I’m closer my goals or identify any changes that need to take place.

When a time frame is put into place it encourages you to stay focused and measure your progress efficiently and accurately. As depicted below, it provides evidence that I will encounter a savings amount of $7000 by the end of the 6 weeks which will be used towards the down payment for my apartment and for my university education fees apart from my other expenses.