Every dollar, every day, we are faced with a dilemma: Should I spend my money or save it? In a time where nearly anything can be bought for the right price, we are tempted to spend all our money all the time. After all, money makes money. But now I’ve learned that your actual income is not what you earn but what you save. Savings is what you can use when it’s time to build your dream.

Advice from leaders

One of my professors gave some wise advice on this topic. He encouraged us to resist spending our post-graduation starting salary on a really expensive sports car. The value of the car will depreciate over time so the wiser decision is to buy a more practical car and invest the remaining money. The return on the invested money can pay for many sports cars over time. This advice was reiterated when I studied a great economist and philosopher who said, “do not save what is left after spending, but spend what is left after saving.” The money which is spent on luxuries is never going to give us any money back but the money which we invest is actually going to help us build our future and our dreams.

Lessons for college students

In my first year as a college student, I realized that no matter how much money I had at the beginning of the month, towards the end of the month I was always broke. Many of my peers were in the same situation because we were only thinking about enjoying our today. That year, I had an idea to initiate a start-up. I needed some initial investment for it but unfortunately I had nothing.

As I looked back, I saw that there was a lot of money which I had spent unnecessarily. I could have saved more and used it for my start-up. From then on I decided that each month, I would take out a certain amount from my paycheck and keep it aside as my savings. A lot of my financial problems began to get solved with this one habit. I invested the money I saved every month which indeed earned me more.

Invest for your future

If there is one piece of advice I would give other college students, it would be to try to save your money and invest it. It may seem challenging at first, but it will be well worth it in the long run. Making even this one action a habit while you are young will help pave the way for a prosperous future.

So, Pearson Students, I have a question for you: How will you save money? Will it be one less latte per month? Or maybe trading the cinema tickets for a movie marathon with friends in your dorm? Saving money can be challenging in college, so let’s brainstorm together! Share your genius money saving tip below!