How Do I Cut Back On Spending While I’m at College?

Q: How do I cut back on my spending while I’m at college?

Rachel’s Answer:

First, you’ve got to want to change your spending habit—and just by asking this question, it sounds like you’re on the right track.

You would be amazed at how you can cut expenses by just taking a closer look at how you spend your money on small purchases every day.

Here are some examples:

Bottled Water: Is there a cheaper alternative to bottled water? Yeah, it’s called water from the tap. And guess what? It’s free!

Gas: On a lot of college campuses, you can probably get around easily by riding a bike or carpooling with friends. Save the car—and all the gas money—for when you plan to go home on the weekends.

Shampoo: Look, I know you need to wash your hair, but do you really need four different types of shampoo and conditioner and body wash and body lotion and . . . you get the point.

Soft Drinks: Not only are they bad for your health, but they’ll also suck the life right out of your bank account. It’s like death by a thousand cuts. Sure, 75 cents might not seem like that big a deal, but it adds up quickly when you’re drinking one or two (or more) soft drinks every day.

Fast Food: Sure, it’s simple, quick and fairly cheap. But that $5 per meal can add up to $25 or more a week if you aren’t careful. Fast food has a way of clogging your arteries and your cash flow at the same time.

Coffee: Are you noticing a trend here? A $4 to $5 cup of coffee should be an occasional treat, not an everyday occurrence. If you buy one $4 cup of coffee five days a week, that totals $80 a month!

Saving money and cutting back comes down to discipline. Once you’ve broken those old spending habits and started new ones, you’ll see how big a difference it makes in your bank account.