SAVING POCKET MONEY: The primary rule in prudent financial planning is to save first and spend later. When you receive your pocket money keep aside a small amount as saving. You can grow money only if you save! You can save only if you spend less than you receive.
HOW MUCH TO SAVE: We consider around 30% as a good saving rate. So if you receive Rs. 1000 as your monthly allowance, you should first keep aside Rs. 300 as savings. The remaining Rs. 700 can be spent. You may start by saving a small amount of money initially and then increasing the savings rate.
The Three W’s: Jot down Why, When and Where did you spend so far. If spent on your petrol, then exactly how much. If spent on a coffee at the canteen, then how much etc. This will help you calculate and keep a tab on your spending ways.
Here are a few tips to save your pocket money and also to make some pocket money
- Amazon, Flipkart, Jabong and many other e-commerce companies have a large requirement for manpower to deliver their products at customer’s doorsteps. Also, some businessmen and professionals rely on the services of a personal assistant for dropping off dry cleaning, delivering documents to an associate, purchasing supplies and other miscellaneous tasks. This is a good opportunity to earn, for those who are well versed with maps.
- Girls can join as teachers in a kindergarten school. It is not mandatory to be qualified as a teacher to teach at a kindergarten school. This works out as a good option to those who love kids and want to make some money.
- You can start writing and publishing some articles or blogs about as a freelancer. This will help improve and sharpen your writing skills.
- Techies! All the young, talented tech freaks can develop an app and publish it on the web. This might not be an easy task but definitely worthwhile.
- You can save money by buying used books. You can also try selling your own books. It can help you to earn a little amount of money.
- Go green! For shorter distances cycling or walking is the best option. For longer distances we should try and use public transport such as buses or trains. If your travel route is the same everyday, you can opt for monthly passes. This will help you save some money.
- You can sell certain used goods/products such as old cell phones, any antique craft work, unwanted furniture etc. that are no longer useful to you on online selling sites like OLX or Quikr.
- Those who are good dancers or are creative can conduct classes on weekends for kids. This is a good source of income and a great stress buster too!
- All the money that you have saved or set aside will not multiply, if you have kept it lying idle as cash. You should have a savings account, a recurring deposit account or a SIP in a mutual fund.
- A part-time job would be the ideal thing to supplement your pocket money. Various profiles, such as content writers, BPO executives, transcriptionists, are available to choose from. You could also opt for unusual roles like a city tour guide or recruitment agent. Then there are the home-based online jobs, but you need to be careful before applying as many are scams. Job search sites like searchmycapus.com and firstnaukri.com, which are specifically designed for college students, can be helpful. You can also seek advice from your college placement cell.