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How do you make student savings grow?





mah_lau
Hi all,
Acutally this has been a question that has been bugging my mind for the past couple of months. I've recently come to the realization that saving money starts NOW as a student... but I'm really frustrated about the total amount of money I've saved. I mean, it's not that I haven't saved enough, but I'd want to make my student savings grow.

My questions are:
1) Do you have any good advice for a student who wants to make use of his savings?
2) What do you recommend in terms of bank savings growth plans?
3) What's a realistic way to think about student savings?

My ambitious (seemingly) unreachable goal is to have enough money by the end of my university career to put a down payment on a place. Haha.. I'm just frustrated...

Thanks for the input in advance!
The Conspirator
The best advice to any one would be to get rid of all you're credit, debit cards and check book.
ahsanrao
look wht i have done is .. i invested my money in geting the frenchise.if Agricultural equipment.. and hired few employees whose handling all this stuff...

you can also invest u'r saving to some safe places where there's no fear of loss..
rjaduthie
If you are shopping around, there is no better place to drop into is Motley Fool - these guys are a financial godsend, if you didn't know already.

From these fine fellows I have taken credit card advice, and pension plan advice; and made sure that everything I make a decision on with my money worries gets a by with their review board.

Honest opinions and sound canny.


http://www.fool.co.uk/
mah_lau
I actually have been looking into GICs that are offered by the banks... Gah, they're actually not that useful to me. I guess the real answer is that there is no real way to make a students savings grow... if you want it to grow, there are risks... -deep sigh-

My problem is that for the interest I earn from a GIC, it'll only be something like 20-30$.. hahaha. Is it better than nothing?
hsandhu21
Well in all honesty my friend as a student we all know you probably don't have too much money just laying around. What I would recommend is a very conservative investment plan conservative in the fact that you don't want to risk your money on an aggressive stock plan or in foreign exchange or things of that nature, what i would recommend is just get yourself a simple ING direct savings account with around a 4.25% interest rate. I mean you could always put that money into a CD but then your locking it away and if you decide to touch it early in case of an emergency you'll be penalized, again it all depends on how much money we are talking about here if its over 10k i would most definately recommend looking into forclosed homes or homes with tax liens or other things in that ballpark otherwise i'd just drop it into a modest savings account. Of course if u got any questions just pm or post here.
mah_lau
Oh, thanks for that. I've actually been thinking about ING-- wondering how they work? My close friend's family only uses ING, but I don't know... the benefits?

How does ING work?
hsandhu21
Well the way ING works is you go to their website at www.ingdirect.com then go to the left side and click open account and under Orange Savings click open now, what happens is u have to enter your checking account info and transfer funds from the checking account into your new savings account and thats it. If for any reason you ever need your money though keep in mind it takes two days to transfer back into your checking account from your ING savings account it is all done online with the push of a button. Hope that helps
Meggsy
I'm a student too and I have just got my savings in order. What you need to do is start small but be consistent.

1. Work out a budget, write down for a few weeks what you spend and what you earn. Depending on your job you may have a regular income or it might slow during exam time. Also spending, things like rego only come around once or twice a year but you need to allow for this.

2. Start investing, depending on how much money you have there are some great managed funds out there. A managed fund is like a trust where you pool your money with other peoples money. Then a fund manager (some professional) manages that money and invests into different stocks. Because you have pooled your money with others the fund manager can buy a wide range of stocks and so the risk of losing it all is minimized. You can start with as little as $1000 and add say for example $100 to it each month. Within no time you will see your money grow. You may also get some tax savings if you invest in the right managed fund. Just becareful, some funds have entry fees.

Try here for more information: www.pida.com.au (I'm not sure if you are from Australia or not, I'm sure there would be something similar in your country if you aren't).
insanesnoopy
Take 10% of your money and use it to pay off debt.
Take 10% and invest it.....capitol gain (anything from savings account to stocks) but lose the card.
Take 10% and give it away. (Crazy advice but it works)

Live off the 70% that is left....Budget and you will do well.

Cheers
upandup
The simpliest way is getting a job. You know how to earn money then you know how to save money. You will never be a richman if you just learn about how to save money... lol
mah_lau
upandup wrote:
The simpliest way is getting a job. You know how to earn money then you know how to save money. You will never be a richman if you just learn about how to save money... lol
Actually, for students.. I don't think that a job would be able to solve everyone's savings problems. I know starting out (I worked at 16), I used to think that $100 was a lot of money, but now it doesn't seem as much. I'm thinking big dreams. I learned money handling skills through trial and error...
Meggsy
The only problem with trail and error is that you can make some costly mistakes early on. Bad habits are hard to kick.
Ucbet
Hey megsy I'm a student too and I'm happen to live in Aus.

What Fund manager do you use ? And if you invest your money with them will you need to do any kind of work to find what kind of stock to buy or the fund manager will use our money and invest it with his knowledge and take some commission if the investation is a success ?

Sorry for the silly questions, but I'm new to this kind of stuff. And in fact, never invest in one and just recently got interested on doing so.
russel26
hmm... bring your school lunch... and commute riding
deStructuralized
Spend less.

Commit to saving a certain amount every month.

Keep your surplus out of checking or bullshit savings accounts. A liquid mid-yield savings or MMA will usually be sufficient to fight off inflation. I'm currently averaging about 4.5%, which is actually, when compounded, probably a higher return on investment than I'd see from most index funds.

This fund will be your money's "meeting grounds," where principal is accumulated and then disbursed into your various investments. Your "entry point," if you will.

Do not day trade. In fact, do not go into any stock you don't plan to hold long term. Capital gains tax KILLS. It's not worth it. But do take risks. You're young. If you followed the previous steps you'll have the money to enter into some interesting ventures.
LumberJack
Keep your credit card debt nil. Try and work while going to school. You can either pay for tuition now, instead of paying later. Or you can try and invest that money in something you feel comfortable with the risk, and hopefully you will see a return.
johnBdoe
1. Living within your means.
2. Pay off debts, starts with the highest interest.
3. Invest.
4. Repeat Step 1.

Or you can embark on projects like facebook, youtube and sell it off to giant corporations. Very Happy
slasonic
@Meggsy, great advice. A budget is very important. A lot of money is wasted on fast food, etc. Don't forget to budget in some fun, though.

Also, live a modestly as possible.

Lastly, open an account at sharebuilders.com and put your savings in a money market. This is very low maintenance and safe. If you want to, go with the stock market, but that requires more effort.

Money markets offer around 4.5% return. Dividends are paid monthly, and it's a compounded interest account. Just keep adding to it, a little at a time.
ExecuKev
go to Vegas and put it all on red ! Twisted Evil
bogger
modesty is great, remember that you definitely don't have the budget to refuse to buy at walmart/tesco because they mistreat their employees.

Remember too that you can save a lot of money by turning down your heating to a comfortable 18 degrees and wearing a big woolly jumper indoors.

Don't drink as much when you go out, become a lightweight! Or just prebooze Razz
FFXclan
mah_lau wrote:
Hi all,
Acutally this has been a question that has been bugging my mind for the past couple of months. I've recently come to the realization that saving money starts NOW as a student... but I'm really frustrated about the total amount of money I've saved. I mean, it's not that I haven't saved enough, but I'd want to make my student savings grow.

My questions are:
1) Do you have any good advice for a student who wants to make use of his savings?
2) What do you recommend in terms of bank savings growth plans?
3) What's a realistic way to think about student savings?

My ambitious (seemingly) unreachable goal is to have enough money by the end of my university career to put a down payment on a place. Haha.. I'm just frustrated...

Thanks for the input in advance!


Mine savings grow by working part time besides my studie
tom722
I actually have been looking into GICs that are offered by the banks
myroom
The Conspirator wrote:
The best advice to any one would be to get rid of all you're credit, debit cards and check book.


I am totally agree with you. sir.
Nowadays, a lot of student already have lot of debt before they start working and earning money. Most of them buying the branded stuffs, spending money for night life, own luxury car, and so on. They already start spending their future money. That's why the loan company now targeting in college student. They even have their agent very actively in the college to find the victims. Sad

Before you can start saving, of course you'll need income money in. In my school life, I used to sell some goods to my school-mate. Goods like reference books, football jersey, shoes, computer accessories, stationery, cellphone and foods as well. I just want to get more pocket money and saving for my future purpose. That's my college life.
kenmuas
Sadly I was able to save up a good amount of money while working and schooling, but it all went away so quickly after college graduation due to student loan. I yes absolutely agreed on getting rid of credit card, debit and such.
scotty
I'm a student at the moment and to be quite honest I don't understand where the whole student poverty argument comes from. Invariably at university, domestic students live at home with their parents who support them or only require a small contribution towards the livings costs a student incurs. I have a part-time job, and I buy food out quite often, use my mobile phone as much as I'd want to and drive my own car. I've steadily been saving my money. Now I admittedly don't have to pay for books for university but the amount of money I have saved is quite substantial. I have incurred a debt with the Australian Taxation Office and I pay off my course fees when I have a full time job. In the absense of such a scheme I expect making ends meet could be somewhat challenging yet I would be able to afford it so in other countries where there is no interest free loan scheme I can understand why you may be short on money, but in Australia my advice is - get a job.
DanielWestman
johnBdoe had some good advices.

First of all, the first thing you should do is cut all your credit cards in half and throw them in the trash, they will do you no good.

Here's some advices about how to mak a fortune.

1. Live within your means (That's a start, but I would say live below your means if you're serious with saving)

2. Pay off your debts, starting with the highest interest.
If you have a really low interest loan and think you can get a higher return of the money if you invest it instead, invest it!

Let's take an example:

Let's say you have a loan at 3% yearly interest.
If you think you can get a higher return than 3% if you invest it, you would earn more money by investing it instead of paying off your debt.

3. Save a minimum of 1/10 of your income each month that you do not touch under any circumstances. You can afford it! Invest it!


The key to making your savings grow is living below your means and/or increase your ability to earn money! It's usually easier to live below your means!
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