Saving money from summer jobs ... while still doing fun

I've been teaching more than 4,000 students how to manage my money. They almost always think that saving money is not fun

I've talked to thousands of students through my company

I'm going to give you five steps you can take now to save some serious tests this summer

Step 1: Figure Out Your Disposable Income

It's a simple part. The figure shows how much money you pay regularly, it is a one-time amount (which means the money you can use, not overspent)

For example, if you are going to work 20 hours a week and you do a new minimum salary of 14 hours/hour, you will bring about $280 a week. This amounts to approximately $1,120. (In United States dollars) We'll call it a total monthly income

Let me tell you that your only monthly bill is $50 a month. This will be a total of up to $50 per month

Suppose that you did not have other necessary expenses (that is, items you have to pay monthly), your disposable income will be $1,070 per month. We got this number, subtracting all the necessary expenses from the total monthly income

Step 4: Watch your savings (& Don't Touch It!!)

After you set up this transfer, you are all created to save a lot of money in the summer

Let' s see how much money you save this summer. If you start from July 1, working 20 hours a week before September 1, it will save you money:

$756 was saved by the end of two short months! That's enough to pay for all the textbooks in the first year. Awesome, right?

Now I hate being this guy, but that's how much you would save 50% of the total monthly income, not 30%

$1,260! This is enough to pay for all the textbooks for the first year and half of the textbooks for the second year. I'll leave the receipts for this table so you can collect

Step 5: Enjoy your summer

I want to make it very clear: with this 30% model, you will still have more than enough spare to spend on exciting excursions, clothes and food (obviously)

For how long, ask? Let' s see how much disposable income you've still had throughout the summer

You can do that. In the last nine weeks, you would have spent a total of $1,652 on what you'd like. Not only will you get the amount of money you spend on working with McDonald's and findget spinners, you still save nearly every $1,000 for your future. This, my friends, is called a responsible aduler

Step 2: Rule 30%

In my opinion, as a student, you should save at least 50% of the total monthly income (not income). I understand that this is a little aggressive, so let' s aim at 30%. This is considered a very good way of keeping your total monthly income. If you've lived your entire life for 30% of your income, you would be in a very large financial position

Let' s go back to this example

The total monthly income is $1,120. (In thousands of United States dollars) SCHA. Which means you need to save $336 every month

I want you to think about these savings as expenses. Thus, your disposable income will already be considered the amount to be saved. For example, in the previous step, we established that your disposable income would be $1,070. (In United States dollars) The factor for the purposes of economy is, and your disposable income is actually $734 ($1070-$336 = $734)

Step 3: Setting up the savings account and Automatic transmission

I recommend that you create a separate check or savings account in your bank. Just go to the branch and tell me that you want your savings to be a separate account. Some banks even have free bills with interest rates, so you'll be working on your money

After you set up a separate account, ask your bank how to set up the automatic cash transfer that occurs in each of the days of payment. It automatically transfers a certain amount of money out of the check into his savings account on the day of payment, so you don't even realize that the money is gone

With CIBC, you can do it on your smartphone using your online banking application

To return to the original example, you should have $560 in the bank every two weeks (if you pay every two weeks). Of this amount of $560, you will want to set up automatic transmission for $168 (half your goal of $336 a month) from your receipt account to save your account. Subtract $25 (half $50) for your monthly expenses

You must have $367 in your account every two weeks

* Views expressed in respect of the author, and not necessarily for the "Student life" or their partners

Vincent is the managing director of Don't Freak Out! (DFO) is a company that teaches high school students how to manage their money. He also speaks about groups of young professionals on subjects such as how to find your passion, how to be an effective young leader and how to maintain healthy physical and mental habits