Tips for Student to save money - Or spend less

Celox

Hey all , after looking on google on ways to save money, or ways to spend less I came across this site, and hope that someone is able to help me.

I'm currently 18 and at college full time, and work part time at the Tescos.

I've got a few money worries at the moment, first of all I got a new bank account with Halifax as they gave you £50 when you joined, when I joined I also got a overdraft of £250 until they swapped everything over (which they still haven't done, but I'm not worried about that at the moment), which I asked them to take off but they said it didn't matter. (I really wish I made them take it off).

I'm sure many people know this, once you have money there, you just spend it, it started off small, few things here and there, petrol when I really needed it, before I knew it I was at £200 into my overdraft. (I'm now at £250).

The problem is I cant stop spending money, I've just had to spend £140 getting my car fixed, and £70 for my xbox (I didn't have to get that fixed, but I did). I only get £180 a month basic (I normally do overtime to double it though).

I also get EMA, which tends to pay for my petrol each week (although with the prices getting higher and higher its getting worse), and its often not paid in on time.

Think I've gone a little off topic, but if anyone knows of ways to help me spend less money, and save me it would help loads.

I've started to give my cards to my mum so I cant buy things without thinking about it. And started to sell a few tings I dont use on ebay, as well as lots of overtime (12.5 hours tomorrow as its bank holiday, so more money), but I dont want to get to the stage where I'm working all hours to pay of debts and fall behind on college work.

Thanks.

Lokolo

Ok so you're £250 into overdraft. Are your tesco wages paid into this?

If I were you I would pay off the overdraft ASAP. Petrol is obviously needed as you need to get to work/college etc. However, unless things are needed, don't spend. Its very very hard to but you can do it if you force yourself.

I would go and open another current account with another bank, stating you do not want an overdraft. Lloyds give you a VISA debit card with their current account, HSBC give you a Solo card, not sure about the others. Usually on forms you tick a box if you want an overdraft. DO NOT TICK THIS BOX.

Now you have your EMA and Tesco wages going into Halifax account paying off the overdraft, set up a direct debit from your Halifax --> new current account, of how much it costs for petrol and give youself some leway (spelling?). So if you use £20 a week in petrol. transfer £40 for petrol and going out etc. or however much you need, but be harsh on yourself. don't say oh well £50 is good, as you will end up spending it all and never paying off overdraft.

This should clear up the debt. Once you have got rid of the overdraft, change the account to which EMA and tesco wages are paid into, and use the account which does not have the overdraft. And close Halifax current accouunt.

Celox

Thanks for the reply

I've currently got a current account with Lloyds, my wadges currently go into there, the Halifax said that they would take care of everything, but that was in Feb, and its still not done.

I'll phone up on Monday next week (Dont want to do anything this week as I get paid on Friday and dont want to risk it getting messed up etc).

The thing about setting up a DD is a great idea, send over £100 a month for petrol (That should cover me, I never need to put more than £25 a week in).

If anyone else has any ideas would love to hear them!

Cheers

flutterbyuk25

Hi there,

Well done on realising at this stage that you need to tighten your belt a bit. Better you do it now that 5 years down the way when you could be in thousands of pounds of debt.

Do you absolutely need to use your car? Can you walk places or get bus cheaper? I know 18 yr olds like having the freedom of a car but if you can save a few trips a week then you would spend less on petrol. Only use it when you need to (rather than just "going for a spin" when you fancy it) whilst you are trying to pay off your overdraft. (I'm not generalising, but I remember my brother at that age, he would go out driving all evening and then scrounge petrol money off my parents saying he was skint!)

If you have any DVD's/CD's/Books you no longer want you can try selling them on Amazon marketplace/Play trade or greenmetropolis.

Can you do some work for parents/other family and get paid for it? Babysitting, gardening, decorating etc?

Or. once you finish college for the summer could you work more hours to clear overdraft?

Finally, once you have cleared your overdraft (and cancelled it!) you should set up a direct debit to a savings account on the day you get paid for x amount. This money can then be used to cover emergencies like getting your car fixed.

Hope some of that is useful, and have a good read round this website, there are thousands of money saving ideas!

x

Celox

Where I work its at a odd place, I would have to catch the bus into town (£2.50 for return last time I went), then catch it to work (not sure how much it is), same for college, theres one that goes every hour, but if I miss it, then I'll have to wait longer, or catch the bus into town and then college.

I only use my car for work and college, and dads on a weekend, plus I got it as a present, so cant really sell it.

Got loads of DVD's, but they aren't worth the hassle of selling, most of them where £3 from Tescos, and clasics lol.

I had put my dive computer on ebay though, still got a week left, but got 3 watchers so far, so I'm hopeful, hopefully that will sell, started the bids at £100, so fingers crossed.

Parents have money problems as well, so dont really want to ask them for money for doing jobs etc (Plus I'm already living at home, rent free).

And yeah, once college is over for the summer, its off to work full time for that month or so, only thing is I have my MOT, Car Insureance and Serivce all due in Sept (although my birthday is in Sept as well, so can ask for money).

mikeyrivered

You sound like you're pretty together with your money, everyone splurges out a little when they shouldn't have. you have to think in the long run 250 quid is not a huge amount of money and even the interest you pay on it wouldn't add up to much.

Are you not eligible for a student account? or will you soon be? HSBC offers a 1000 pounds 0% interest overdraft for students, you could open an account, pay off your 250 and then at least you don't have to rush to pay it off to avoid interest.

If you're reasonably confident in your own intelligence and abilities you could look at the matched betting thread, there are hundreds to be made if you take your time, learn how to do it properly and don't actually gamble with your money! your betfair account could become your best friend.

I was in a similar position to you last year, and i've not had a job since then, but now i've got about 1500 in savings and paid off all my loans (except student loans, which i've put in a high interest savings account to make some more dough - as interest in the savings account is higher than the interest i'm paying on the student loan)

There are plenty of ways out there to make some cash, and its easy enough to juggle with college or university if you take control of your actions. as someone above said you've done well to realise you were in trouble at this stage before anything more serious happened, good luck raising the cash, make sure you let us know how you get on


Rivered:beer:

Gemmzie

£25 a week in petrol? :eek: That's a huge amount considering your earnings! How far are you from your college?

Celox

Thanks, I'll look at the match betting tomorrow

And its only a couple of miles, but I do it 4-6 times a day, sometimes more, depends what day and if I have work to catch up on (Dont often stay at the college as there isn't much to do). Plus my EMA (£20 a week) pays for most of it, when petrol was cheaper (Less than £1 per liter) my EMA would pay for it all.

I'll look into getting HSBC, although I dont think I'm paying interest at the moment, I dont really want to have more of an overdraft though. Plus I'm only at college and not Uni, (And I dont really have any intension to go there) I notice that the student one at HSBC is for Uni students?

I was hoping the overtime I'm doing tomorrow (If I work it out right, I should be getting around £100 for the day) would be paid in on Friday when I get paid, but I dont think it will be .

Once my exam is out the way and coursework (Only got a few bits left) I can work every evening if need be.

I've also started doing some online serveys, dont know if they will work out, but its worth a try, I've signed up at ciao.co.uk, soon find out.

Oldernotwiser

Celox wrote: »

And its only a couple of miles, but I do it 4-6 times a day, sometimes more,

Well, that's where your petrol money's going! You must spend all day going backwards and forwards; what a waste of time and money!

pinkshoes

Celox wrote: »

Where I work its at a odd place, I would have to catch the bus into town (£2.50 for return last time I went), then catch it to work (not sure how much it is), same for college, theres one that goes every hour, but if I miss it, then I'll have to wait longer, or catch the bus into town and then college.

My local bus is £2.60 return into town, but if you buy a monthly pass, it's SO much cheaper. If you can, it might be an idea getting rid of your car, as unless you really need it, then it'll eat up all your money.

Well done on sorting out your finances so early on! Something you've paid for out of your own hard earned cash is so much more enjoyable than something bought on credit that you don't actually own yet!

Carry on looking after your finances, and you'll be rich in no time!!

BruceyBonus

So I wouldn't spend so much on keeping a car, I currently use my dad's car at the weekends and walk to college during the week. My dad uses the car during the week and then shares my mum's car at the weekends. It saves a lot of money as only one tax disc between the two of us, one MOT, one lot of insurance and I pay for the petrol I use. Plus as I'm only a named driver, the insurance was about £450 cheaper than having my own policy.

You say your service is due in September. Unless this is required to keep a warranty on the car, you are under no obligation to have the car serviced in September. Perhaps pay the insurance and MOT then wait a few months for the service (you'll thank yourself next year when they both don't come around at the same time!)