Nip and tuck

A look at how to cut back on spending

By Leslie Penney

It’s the middle of January and we’re pretty much all settled back into our groove. Comfortable as the groove might be, it’s time to start paying for all our holiday expenditures. You’ve probably begun to receive your credit card statements in the mail.

If you read my columns last semester, you probably realize the importance of personal finances and the impact they’ll have on your future. Maybe you’re developing a plan to keep your money in control and pay down anything you owe.

Many people will want to speed the process up so once graduation hits, all that remains is student loan payment.

Now’s the time to get a little more serious about paying down your debt. It’s a great time to make small sacrifices that will pay huge dividends in the future.

Your first step should be to cut out all unnecessary purchases. If you have a gym membership, consider canceling it – you can go to The Works as part of your student fees.

Cutting things like your cell phone bill may not be so feasible, but you may be able to trim a few bucks off your package. Have a look at your options.

The key to all of this is to kill your current debt so you can enjoy life down the road when you’re making the big bucks.

This way, your hard earned money isn’t going toward paying for past debt.

Once you start, find an extra $20 a month to put towards your debt. It doesn’t sound like much, but it will add up. Increase this amount if you can manage it.

I can hear the million-dollar question now: How do I come up with this extra cash?

That’s your job. It’s gut-check time. You may have to do stuff that you always thought was lame. You may have to create a budget and keep track of your spending to identify where your money is being thrown away. Sounds like fun, right?

There may be a couple of places where you waste your money that I’ve mentioned before. Things like your cell phone, cable television, magazines, and so forth.

Trim back where you can. Think of other things to spend money on less often, like clothing and haircuts. It may be a good idea to delay expenses like personal trainers or days at the spa.

The second approach is to earn more money. You may not have an ideal job, but think about the reward in the end.

Some people have great class schedules and can work a job around it while others aren’t so lucky.

If you have a few spare hours a week, you can earn enough dough to pay down your debt or even just save for a purchase.

If you spend a lot of time on your computer, why not start a blog? The money may not be that great, but you may earn a few bucks at something you like to do.

There may be a certain sense of pride associated with writing a blog as well. Not to mention, it may help you land a job once you graduate, since it’ll showcase your writing and communication skills.

You might also want to hook up a MUCEP job, or another job around campus. This would be especially beneficial to those living on campus. It cuts down on transportation costs and most of these employers understand that your studies come first.

The advice in this column isn’t for everyone. Everyone values time and priorities differently, but if you want to take an aggressive approach to debt reduction, then this is for you.

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