3 STEPSTO SAVING MONEY AND BUILDING PERSONAL WEALTH
EVEN WHILE YOU ARE APOOR COLLEGE STUDENT
STEP # 1PAY YOURSELF FIRST!
Treat savings like a monthly bill – and make payment to your savings account each month.Remember you are the recipient of the payment so if youskip a paymentyou are not getting paid!10% of net is standard but any amount is more than you have now
STEP #2EASY TO DEPOSIT HARD TO WITHDRAW
No ATM card or transfer capabilities on accountOpen account at a bank at least 45min from homeIf married put both names on account not asan“either or” but as “both” parties must be present to make a withdraw.
STEP #3THE SECRETE QUESTION
Is this purchase more important than ME?
Simple ways to save
Coin jar – spend no coins -always break a bill(the average person spends between 300 and 600 dollar a year using change)Expensive piggy bank that must be broken to retrieve money.Politely ask for savings bonds or gift checks for presents.One for one
How to decrease the amount of money going out
NEED VS. WANT
Will not purchasing cause death or physical harm?Will not purchasing be a violation of lawWill not purchasing cause mental anguish to the point of incapacitationWill not purchasing cause bodily harm to a loved one
Pride for waiting to make a “want” purchaseWill you be able to purchase something nicer if you wait?Personal goal vs. tangible purchaseIs this expense to relieve some other tension?
You pay for convenience so cook from scratch (prepared and microwave food always more than cooking yourself)You pay for personalization – is your hairstylist knowing you worth a $90.00 hairstyle.Companies plan for you to make spontaneous purchases – never buy without a waiting (thinking) time period
Bringing more money into the equation
INCREASE PAY RATE
Having a job instead of career can sometime produce more money for the short termAlways be looking and networkingRemember, you never know who may be your next boss so actappropriatly
INCREASE # OF HOURS WORKED
Time management schedule can reduce wasted time which provides more time for workEducation first – no benefit if you have to w/d or fail a course due to working to many hours
Family and friends provide monetary supportFamily and friends provide a service for you that reduces you expendituresscholarships, grants and loansgifts
HINTS AND SECRETES
GoalsPlanning and budgetingSupportDeterminationExpect and plan for disastersResources – financial literacy website
Personal wealth comes from length of time money grows – start nowCompounded interest is the keyInvest in retirement program – 401, 403bMaximize any employer matching fundsTake benefits and retirement plan into consideration when talking salaryFollow your passion and live within your meansStrive for debt-free living