Tuesday, October 27, 2015

It All Depends On Your Priorities

Life
Column|Annie Berger

Spending less instead of gaining more can help improve student lifestyle


Wish you were a millionaire so you could travel the world, live in a villa and go out shopping or clubbing every day?
As a job-less student, I am often asked how I can manage to live while having no income for a medium time period. I do not work, not because I was unable to find a job, but because I chose not to work to focus on studies for some time. Needless to say that I have worked intensely for the last three years.
Yes, but your parents pay everything for you, some may say. Not that much, actually.
In the student world, there is a misleading thought that having a highly paid job equals being wealthy as a whole. May a student earn $300 a week, 50$ or nothing at all, financial results may end up being strangely similar in the long-run.  
How much do you spend?
It seems some factors are hidden when it comes to considering the effectiveness of producing income. I mean by this that one must not forget to consider what the net income is:  the income minus the expenses. Is it actually efficient to pay for a car and its gas – having a 10 km distance driven twice- for a 4 hour shift? Think about it. One spends part of his or her income to earn it. Thus, hypothetically a 44$ income of a regular 4 hour detail-store-Friday-evening-shift ends up in reality being a 40$ gain. Alas, there is an illusion of making a certain amount of money while not considering the expenses it involves.
If one goes out twice a week, let’s say spending on average 30$ each time, this results in 60$ less in one’s bank account weekly. Not to talk about the increasingly high prices of going out: taxi rides, alcohol, food and tips - matched with shows and festivals. There are so many appealing reasons to spend for students, it is difficult to resist. I do not wish to discourage such activities, I want to point out that spending is something that can be controlled. Of course I do not bash on spending for a necessary OPUS card – or a car, depending on where you live- or basic living expenses, but for the rest, there are so many things seen as socially mandatory that are indeed choices.
Choices
Using simple math combined with being wise and thoughtful, finding the best paying job might not be the only solution to increase your financial backups. Even if it may seem disastrously boring, trying to reduce your expenses with smarter options could make a huge difference. Why not take part in free events in the city instead of paying for event tickets? Buying alcohol at the SAQ instead of bars, having friends over at your place instead of going out? Bringing homemade coffee in a mug instead of buying it each morning? Making your own lunch instead of buying it? Small steps that added up together, could allow one to reduce work hours- and, consequently, to have more free time- or gradually have more money aside.
This may seem similar to environmental awareness campaigns, always trying to make people change habits in order to increase recycling or personal health for instance. On an economic perspective this time, the same concept applies: there are small choices everyone can take to gradually modify habits leading to a better lifestyle. Why not use this strategy by changing spending habits, not be obligated to work more, and keep more money in reserve?
Over all, it all depends on choices one makes about his or her lifestyle. What goes before what? As an example, not spending for a cellphone contract (yes, it is still possible) ‘‘saves’’ me at least 450$ each year for which I later on spend in traveling. Fashion hobbies can also eat up budgets- that’s all part of making choices.
In the long-run, gaining a lot of money does not mean having a lot aside. The ability for students to eventually assure an apartment, buy a car or travel cannot be taken for granted. Try listing your earnings and your expenses, then see what your real earnings are. One could gain an impressive wage but actually be less financially well off to leave two weeks this summer than someone barely working, but also daily barely spending. The illusion of being wealthy tricks student communities.
Annie is a second-year World Studies student and Editor-in-Chief of this blog and newspaper.

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