It’s summer – the semester is over and academics have taken a backseat for the moment. At this time of year, many students choose to spend the summer interning or working a job. It is an opportunity to earn money and possibly save up for the school year ahead since with a freed up schedule, students are able to devote more hours to a job or an internship.
After earning a hefty amount, it is tempting to splurge on a new laptop or other luxury items but as a college student, you will need the money for the semesters ahead so here is a plan for saving in the summer so that you can both splurge and save for the stuff that matters.
What will you be saving up for? Well, there are textbooks to be purchased for the semester ahead, college tuition to be paid, and possibly rent for an off-campus apartment.
Working during a school semester is tough and you would probably prefer to cut hours then at your job so it is important that you work and save up for these expenses now so that you will be set for the semester ahead. Here are some steps for that plan:
The first thing you should do is to calculate the amount of income you expect to earn in the summer. Since you will be picking up more hours or working full-time during the summer, expect this number to be higher than it would be otherwise. This is great so that you can set more money aside for future expenses or you can occasionally splurge.
Total Current Expenses
During the summer, you might be living with parents or you might be living off-campus in an apartment – if so, then you will have to save for rent and utilities. There are also other expenses such as food, car insurance, and bills that you might have to pay. Don’t forget to set aside money for other things you might need such as a spending allowance.
Subtract Current Expenses from Income
I’ll call this “gross income” – it is the money you have left over after paying current expenses. Out of this, you will set aside money for anything you want to save up for such as a new laptop and of course, expenses for the next semester such as textbooks or tuition.
Set Aside Money
The last step is to set aside the amount of money you plan on having for the next semester by transferring it into a savings account from each paycheck. There are many ways to make this easier so you won’t feel tempted to spend the money. For example, there is a system that will automatically transfer money from a checking account to a savings account which I highly recommend!
Summer is a time to relax and although it would be great if you could save as much as possible for the fall semester, don’t be afraid to enjoy it while spending some on yourself!
Jaskamal Gill will graduate in 2016 from Rutgers University with a degree in accounting and a minor in English. Jaskamal plans on working for a Big 4 firm after college and getting her MBA. She dreams of starting her own business and enjoys Virtual Campus.