How to Make the Most Out of Your Summer Job: Saving for the Future
A summer job will certainly mean more money in your pocket – but it’s also a great time to begin building up your savings for use later in life. Instead of spending your paycheck right away each week, find out how you can start building up a nest egg to benefit your financial future.
Determine Your Disposable Income
Once you know how much you’ll be making in your summer job, it’s time to figure out what your disposable income is. To determine this, multiply your weekly pay by 4 to get your monthly income. Next, list out your expenses and total them up for the month. Expenses include your rent, utilities, and other bills like your cell phone, streaming services, etc.
Then, take the difference of these two numbers to find your disposable income. This represents the money you have left over to spend. Although, if you want to invest in your future, you should be putting some of this aside into savings.
Set Up A Savings account
Whether you have specific goals or just want to put money away, a savings account is a great way to build towards a better financial future. Opening a savings account allows you to put your money to work with interest, and certain savings accounts also have additional benefits. For instance, Pioneer’s savings accounts give you access to Pocket Change – which makes it easy to save by rounding up your debit card purchases to the nearest dollar. Opening a savings account is a good start, but you need to make sure you are adding to the account.
Put Money In (And Don’t Touch It)
Now that you’ve resolved to saving money, it’s important to resist the urge to dip into your piggy bank. It may be tempting to access your extra funds if you want to spend a little more on the weekend, or when you go shopping online, but sticking with your savings is important. Stay conscious of your budget and adhere to it as best you can.
Be Efficient With Your Spending
Being efficient with your money is a great way to ensure you adhere to your budget and can help you be more mindful of your money and spending habits. When you go shopping for instance, you should always do so with a list. This will keep you from purchasing things you don’t need and running up your weekly spending. Food is another expense that can creep up – limit the number of times you order take out or go out. Try limiting this expense by prepping your food for the week. Meal prepping is a far more cost-effective option and will help you stay within your budget.
Take Advantage of Networking Opportunities
While you may be focused mainly on saving up the money you are earning from your summer job, don’t forget the value of making important connections! Whether it’s an internship or seasonal job, get to know your coworkers to grow your network. Even in a summer job, making connections has its benefits. Those connections can help you later in your career when you’re looking for job opportunities or in need of advice.
Enjoy The Summer
Now that you have a plan to save for the summer, you can kick back and watch your savings account grow. Establishing these habits early on will benefit you later in life and can even make it easier for you to retire sooner. So don’t put off saving for your future!