What's up, everyone? It's finally Friday!! We made it through another week of 2020, what a success. I hope you had a good week and drank enough water. Today we will dive deep into one of the topics we all dread in some sort of way and have to deal with at one point in life. It's also a topic that schooling doesn't teach us well so stick with me, and hopefully, we will all gain something from it :)
We all are taught from an early age that we should carefully manage our finances, but what we are not taught is how to accomplish that. Most of us are never taught the value of a dollar. So, let me tell you. Every dollar matters! Yes, every dollar matters. Remember, it's that one-dollar bill that makes single individual 99 dollars into a one hundred dollar bill. If you didn't have that dollar, you would never have a hundred dollar bill. I remember, when I was going back to college, I wanted my previous college to release my transcript to the new college. Upon checking, I realized that there was a "collection" posted on my account. As long as I remember, I had paid my last college in full, so I called them and asked about the hold. You won't believe what happened next! I was told that I had a balance of ONE DOLLAR on my account that was unpaid. I thought they were joking at first, so I started laughing. They were serious and said, "How will you like to pay this?". WOW. The ego. At that time, I was in Georgia, and my previous school was in Pennsylvania. If I could be there in person, I swear, I would've paid that one dollar in 100 cents. Your college will literally drop you out of all your classes if you don't pay that dollar. If colleges are so concerned about their every dollar, why aren't you?
A couple of things that have helped me in the past with my finances are budgeting. I use apps and actual budget notebook to keep my finances in check. Every Sunday night, I go through my receipts for the week and see my spending. If I overspend in one area, I cut down my expenses in the other. Another alternative is to make up that amount in income to have that budget balance in your accounts. Plan your spendings. If it's a big one, save for it ahead of time.
But here are some specifics:
1) Have consistent income streams
2) Have more than one income streams
3) Have a budget for every month
4) Have a savings account with a high-interest rate
5) Don't eat out every day
If you live in dorms and have no kitchen, then you're probably stuck with the food in the dining hall, but if you have an apartment, please please do the grocery shopping. Let's do some basic math:
Let's say a good meal costs $10. Let's multiply that to 3 because of breakfast, lunch, dinner. Now, 10*3 = 30 (daily cost), if you go to school/work five days a week, that's 30*5 = 150 (weekly spending). There are four weeks in a month, so, 150*4 = 600 (monthly expenditures). There are 12 months in a year, and that is 600*12 = 7200 (yearly cost). WOW!
Now, I'm not saying that you do this every day, but instead, I am going to use the word "often" (Is it pronounced OF-TEN or OFF-FEN), but that often really adds up. Meanwhile, If you do max $100 grocery, you can make breakfast, lunches, and dinners out of that for a week! That's a whopping price drop. See, you have to be smart with your grocery. I'm not asking you to buy ready-made dinners and lunches. Instead, I'm asking you to buy more vegetables and prep meals because then you are eating better and saving money.
Ok, this one is a little sketchy for some people, but HEAR ME OUT. Credit! It is so important!!!! I can't emphasize it anymore, but it is more valuable than cash. As we move further into the digital currency age, king cash is going to be worthless. More and more people will start utilizing credit to find your worth, (judge you, lol jk), qualify you for different offers, and see you as a trusted lender. Even before you turn 18, I want you to be an authorized user on one of your guardian/parents account. Once you turn 18, I suggest you apply for a credit card by using prequalifying soft pull tools. Start putting all your purchases on it and pay it back immediately. One golden rule my brother in law taught me, "You should never buy anything with your credit card that you can't pay back immediately." I think it's a great rule in the early years of credit. Honestly, if you pay your bills on time, one credit line will be enough to boost your score to 600 something and even 700 something in some cases. By the time you graduate, you will come back and thank me because now you can qualify to buy a car on your name, and get an apartment. Don't get intimidated by the credit line amount just because it's there. Keep your usage level below 30% at all costs. Only this way, you did not waste your four years in college claiming to be a student who just got scammed by the college who holds them accountable for everything.
Also, find a side gig. If you like shoes, sell them on StockX. You like driving, drive for Uber. If you are into sports, place low bets on Fanduel. You are good at a skill, teach it to others. Put that side gig money into some investing app. Remember, start small.
Some other tips:
Don't get unnecessary loans
Don't go out every night
Learn to say NO
Save every single dollar and penny
Budget Budget Budget
Before you buy anything major, sleep on it and see if you can remember it tomorrow
Don't believe in those free money now posts on Instagram and google
Don't live out of your means, be frugal
Never compare yourself to others, they are not going to pay your tuition
Carry less cash, so you don't get rob
Ask for student discounts everywhere
One last tip:
NO, YOU DON'T NEED THE LATEST IPHONE :D
Some apps that help me manage my finances:
1) Credit Karma (Monitor your credit every other day)
2) Acorns (investing small amounts)
3) Mint (good for budgeting)
4) Robinhood (if experienced in investing)
5) Wally (for debt payment and budgeting)
Songs I'm listening to this week: Smile by Juice WRLD and The Weeknd
Tip Toe by Sheff G and Sleepy Hallow
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