All this talk about the economy crashing, the freezing of credit and the mass amount of money that will be lost (and has been lost already) has brought my attention to something I rarely ever talk about; your wallet.
Money has been on my mind for a while now for a number of reasons: Everything seems to be going up in price. Gas is still sucking wallets dry, people are defaulting on their mortgages and major financial institutions are in trouble. Last night I watched CNN in an attempt to learn something about this economic turmoil. I can’t say I learned much. It was mostly bickering from Republicans and Democrats debating who was at fault for the whole mess and whether or not the $700 billion bailout package should have been passed.
Many of you are unaware of what the ‘bailout package’ really is. According to Suze Orman, who was CNN’s guest speaker last night, the bailout package is the U.S. government buying up troubled assets from these financial institutions so the credit market will be freed up so money can start flowing again. According to countless financial advisors, the government’s inaction is not a viable option. Without government intervention, the institutions will not be able to lend money and consumers will not be able to buy. Many believe that if something is not done soon, we will enter another great depression. I still don’t understand the complexity of this problem, but that doesn’t sound good.
Scare tactics aside, this whole mess has sparked a newfound interest in me- economics. Admittedly, economics isn’t my first choice of course favorites, but I do want to learn more! And despite my ignorance in economic policy and international markets, I do know a thing or two that will help the average college student save some dough.
So, now that you know the core of what’s happening in the economy, let’s dumb it down to some practical things you can do to save. You’ve probably heard all of this advice before, but this is the B-PAX way to save.
1. Buy the generic brand. I know some things don’t come in Wal-Mart’s ‘Equate,’ but for those that do, get those instead.
2. Make coffee at home and stop buying Starbucks.
3. Stop driving to the other side of campus every time you change classes or need to go to Hughes-Trigg. Walk. The exercise will do you some good and you’ll save on gas.
4. Use a Nalgene water bottle and fill up from you fridge. Bottled water is more expensive and wasteful.
5. Shop at Forever 21. They have fabulous clothes for a fraction of the cost of competitors.
6. Eat at home. Going out is FUN, I know! Have your friends over instead and watch a movie together.
7. Stop buying what you don’t need. I used to be notorious for picking up junk in the grocery store. If you don’t need it, admire it in the aisles, but don’t bring it home.
8. Buy a case of soda and put it in the fridge instead of buying one every day from the vending machine. Trust me, you’ll save a bundle.
9. Take out your money in cash and keep it in your wallet. That way you budget for the week and don’t do the immortal sin; OVERDRAFT!
10. Call your credit cards and ask for a lower rate, it worked for me!
11. Avoid your credit card at all costs if you can.
If you’re terribly rich and you don’t need to follow this advice, good for you. Just make sure it stays that way.
