The Masochist's Institute of Technologyanecdotes of an ambitious MIT student

So you’re a college student now, and you suddenly realize that living independently costs money. Lots of it. And unfortunately, after paying sky-high tuition and housing fees, you don’t seem to have much of it left.

from the movie Confessions of a Shopaholic

Equally as unfortunate, many students don’t realize just how much money they’re spending until they (or their parents) get the credit card bill and stare at the triple-digits in shock. “Am I really spending upwards of $300 a month?!” I nearly screeched the first time I saw my statement. “Surely that must be wrong – I only eat out twice a week, and spend a max of $5 on food per day, and only bought 5 or so books… and that really cute skirt from H&M… and that pair of super-sleek jeans from Express…”

Yeah, I’m sure you see the problem here.

Since my parents pay my credit card bill, I never realized the epidemic of my spending until a few months ago, when my credit card bill skyrocketed (granted, I also paid for my ticket to AnimeExpo and many promotional items for SnM). I later felt completely terrible when I splurged on three formal dresses from Sears (they were 50%-off!) and a pile of books from Borders (though I did have a 30%-off coupon). “This has got to stop,” I spat through clenched teeth. Then and there, I vowed to cure my chronic spending habits.

My journey to become a super-saver is still a work-in-progress, but I thought I’d share with you some tips that have worked. With this advice, hopefully you won’t fall in the same hole that I did!

01) Make your own [healthy] food

It’s strange how nicely healthy food fills you up – a handful of raw veggies is as filling to me as a single cheeseburger from McD’s. And better yet, it’s healthier and you won’t be gaining weight while trying to lose that spending habit! Instead of going out for lunch every day (“going out” also includes university dining halls or food courts), pack a sandwich and some fruit in a box, along with a bottle of water. On weekends, try tossing together a garden salad or rolling your own dumplings.

02) Get a water filter

You’d be surprised how much people spend on bottled water per year. Not only is the plastic bad for the environment if not recycled, but let’s face it – bottled water is expensive! It’s much more efficient to invest in a cheap water filter (ex. Britta Slim Pitcher) and just filter tap water to drink. If you get a thermos or plastic water bottle, you can just reuse it daily instead of having to pay for cartons of fancy store-bought water.

03) Eat before you go grocery shopping

I believe this is one of the best money-saving tips ever; never go grocery shopping on an empty stomach – you’ll get cravings for food that you don’t need, or you’ll end up buying more than is necessary. On the other hand, if you head out to buy groceries when you’re full, you’re less likely to splurge on junk or excess food, minimizing costs.

04) Sign up for rewards cards

I have saved so much on my groceries (at least $5 each time) by signing up for a free Shaw’s card. Most of the time, rewards cards are free or very cheap to acquire, and you save a ton. In my wallet alone, I have rewards cards for Shaw’s, Borders, and Barnes & Noble.

05) Buy store brand

We are bombarded every day by big-name brands, to the point where we automatically associate a brand with its product (a good example is Kleenex). That means the big-name companies can effectively raise the price of their products, and we will subconsciously spend more in order to get a well-known and trusted brand. Don’t fall into this trap! Store-brand is so much cheaper (and the quality is usually exactly the same, contrary to popular belief). I used to buy Progresso soup all the time at Shaw’s before I realized that it was nearly a full dollar more expensive than regular Shaw’s brand. I switched over and now am happily eating my $1.50-cans of soup for dinner. Oh, and most of the time those rewards cards I mentioned above will only apply if you buy store-brand anyways, so it’s double the savings if you choose the lesser-known.

06) Do not be tempted by coupons

Stores can afford to issue coupons because they know it causes people to buy their products on impulse, with the mindset, “Oh, it would be a waste if I didn’t use this coupon!” The truth is, most of us are so eager to exploit these minor savings that we end up spending a lot on items we don’t need. For example, a week ago I got a 30%-off coupon for Borders, one of my favourite stores. I didn’t have any books that I particularly needed, but I dragged a friend along anyways and we spent a grand total of $100-ish before savings. Sure, it eventually whittled down to $70, but that’s still $70 out of our pockets that could have been saved.

08) Carry minimal cash and no credit card

This is self-explanatory: the less you have, the less likely you are to spend. Keep the extra cash at home or put it in a savings account – anything to get it out of sight, out of mind. I remember last Friday, when I was walking through Harvard Square after a 9am meeting with my Ph.D student mentor. I remembered that there was an IHOP in the area, and even though I had had a perfectly decent breakfast of soymilk and sliced bananas earlier, I couldn’t help wanting to drop by and buy myself a stack of pancakes. Fortunately, I noticed that I didn’t have my credit card on me, and only $10 in cash (which I needed for the subway ride back). I ended up not going to IHOP, and by the time I got home I didn’t even care anymore.

09) Walk (or bike) everywhere, or take public transport

For those in predominantly “driving” areas (like my hometown Austin, Texas), utilize public transport. It’s cheaper than spending upwards of $2.50/gal on gas. For those of us in public-transport-dominant areas (like Boston, Massachusetts), think of taking it a step further and walking/biking everywhere instead. These modes of transport are absolutely free, and while it may take a little longer, you’ll be getting some exercise and saving money – just think of that!

10) Find some friends to save with you!

As with many things, when you have someone else looking out for you, you are less likely to stray from your plans and budgets. Make savings plans together, and then keep each other in check. Alert each other about cheap opportunities and sales, split the cost of meals, cook together, etc. It’s amazing what a buddy can do – not only will you be happier when trying to save some cash, but you can celebrate each other’s little victories as well =)

why yes, I -was- just looking for an opportunity
to promote the awesomeness that is RockBand

10) Borrow books, movies, video games, etc.

In the vastness of your college dorm, there are probably classmates who have copies of the latest movie you want to watch. There’s probably someone with fresh reading material if you get bored of your same-old novels. There’s probably someone with a copy of RockBand who doesn’t mind you invading their room to play along. This is definitely something I need to work on; if someone else already has it, then there’s no reason to go and buy a duplicate copy (some extreme exceptions allowed: for example, limited edition CDs that might skyrocket in value in 5 years…)

11) Free food and fun events!!

Ahh, the college student’s favourite. Whenever there are networking events with free food, attend them! Not only will you get some interesting insight from the speakers, but you also just saved $2-5 dollars on a meal for the day. Likewise, if you’re feeling the itch for some entertainment, try to scope out some cheap or free performances. Many bars and restaurants will feature live artists and indie bands, if that’s your thing. Both your college and neighbouring schools probably have many free performances as well, so if the fine arts are your thing, then scope some out. Never miss out on a chance to spend less when you can!