Chapter Forty-Nine: Finances 101

How many times have you heard about the poor college student? The endless Ramen Noodles, the sleepless nights, the empty piggy banks... Well, yesterday, during Women of Faith, we were lucky enough to hear about how to cure at least one of these problems. Kathleen Williams, a local financial adviser, gave us some tips on how to not be the traditional broke college student.

I am just the deliverer here...give all thanks to Kathleen for not only sharing her advice, but for also letting me share it with all of you! 

This blog post is basically this document with my commentary. If you want to skip my rambling, just read through the document yourself. :)

So, if you want to be able to pay your bills, have a social life, and have some extra change, follow this advice! 

Don't let your piggy bank get empty!

The BIG 3 RULES: 

Live Below Your Means

Invest the Surplus

Stay the Course

Basically, what is essential for "staying ahead" is to spend less than you earn, and stick to it! 

A good start is to set aside a certain amount of money per week. Katalyn, one of our group leaders, mentioned the 52 Week challenge. How this works is that the first week of the year, you set aside $1. Then the next week you set aside $2, making your overall saving balance a whopping $3. Eventually, this adds up to about $1400! An alternative to this method is to do it backwards...So the first week you set aside $52, and next week you set aside $51, and so on.

However, as easy as it sounds, how do you know how much you can really afford to save? Kathleen suggested we track our expenses for one month. It's still pretty early in October, so why not start today?? Ideally, it's better to use a check registry. It looks like this: 

Fun Fact: Many older teens and young adults have never seen one before!

Basically, this is a tool that people used before we were given the gift of online banking and apps on our phones. As convenient it is to just swipe and pay without batting an eye, it's important to keep track of what you do. What if the bank messes up? What if the cashier pockets some of your money and you never know? So, not only is this a great security tool, it's also a good money tracker.

While tracking your expenses this month, it's important to make a note of what kind of expenses you are giving money to. 

• Fixed Expenses - these are the stable, usually monthly payments you make. Examples are rent, car payments, phone bills, etc. 
• Variable Expenses - these are the payments you make often, but are flexible depending on what or how much you get. Examples are groceries, utilities, gas, etc. 
• Discretionary Expenses - these are the "fun" bills. This is what you use when you go to social events, eat out... you get the idea. 

Once you track your expenses for the month and sort the payments into their proper group, then you can see where you can cut out some unnecessary costs. This can be a little hard to think of on our own, so, luckily, Kathleen provided us with some advice on what to do in these sticky situations.

Fixed Expenses

There is not much we can do about Fixed Expenses. The only advice I can give is to be sure you find quality service for as little as possible. Easier said than done. 

Try and negotiate if you can. You might be surprised with what can be done with a little wiggle room. 

Variable Expenses

Home

There are quite a few things you can do around the house to keep costs low. 

• Is electricity killing you in the summer? Try and keep the A/C a little warmer and see how that changes things. Open windows and let the natural air circulate and cool off the house. 
• Save some cash by washing and drying your own clothes. The cleaners should only be used on special occasions...err..clothing
• New furniture and the latest clothes can be really expensive. Don't be afraid of getting things used. Thrift stores like Goodwill and Salvation Army are great places to shop. Clothes-wise, I recommend places like Plato's Closet, Ross...I'm sure there are many others. These places have the "left overs" so to speak...you might find something really special! 
• Turn off the lights! Use the natural light of the sun if you can. Your home does not need to see in the dark when it's alone! 

Auto

• Gas is a killer. Try and carpool (but always be generous with gas money for others!). Public transportation is always good, too. Tech is always full of buses...and they are free for students!
• Don't speed. It wastes gas and could possibly result in a fine. 
• Practice good maintenance habits with your car. Change the oil when needed, and your car will perform much better (and love you more!). 

Shopping

• Groceries can really add up! (Trust me, I've learned this within the first couple weeks at college) Big tip here: EAT BEFORE YOU GO SHOPPING. Seriously. If you're hungry, everything looks like it needs to go home with you. 
• Compare prices. Don't just grab and go...really look at how much everything is. If you can, look at the price per ounce. (Hint: usually store brands are the cheaper versions of name brands!) Know which store usually has cheaper prices. Walmart, as much as I hate it, usually is a cheaper option than Target.
• Buy in bulk. A lot of the time, the big packages cost more, but save you money later. (CostCo and Sam's Club are well known for their huge products)
• Make a list and stick to it. Throughout the week, if you notice you're running low on soap, or completely lose all of your hair ties, put it on the list! 
• Try to shop on a schedule (weekly, biweekly). This will keep you from running to the store whenever anything is needed. I'm sure you can survive without peanuts for a day or two. (Unless it's toilet paper...then you can run to the store...and quickly!) Also, when you buy everything all at once, it saves you a couple of bucks on the tax! 
• Use coupons! I know I was given about 7 coupon books that have various discounts around town. You can also Google for coupons. 
• THE DOLLAR STORE IS AWESOME. 
• Drink more water...it's better for you and your wallet. Soda and other flavored drinks are expensive! 
• Wait 30 days before you make a big purchase. So you want a new phone...think about it for awhile. Impulse buying is a real problem, and this is the cure! 
• Make DIY your new motto. DIY (Do-It-Yourself) is a new craze that can really save you some money. Check out the Pinterest DIY & Crafts for some ideas. Besides, this also makes for a fun hobby!  

Discretionary Expenses

Eating Out

• Get Water...It's better for you, and significantly cheaper. 
• Go small, not large. 
• If you do go large, share with someone or take it home for dinner tomorrow. 
• Kid's Meals (I love this one!)
• Make it special. Only eat out on special occasions. Birthday, Aced the exam...make it a reward instead of the usual. 

So, how do we save our money other than cutting down? 

• As suggested by Kelsey, one of our leaders, make your own piggy bank! Kelsey uses a big tub (which used to hold Animal Crackers). She glued the lid on, and cut a slit big enough for some cash to squeeze in. Someday it will be full and Kelsey will feel a whole lot richer! 
• Try the 52 week challenge, as I suggested above. 
• Use cash more than credit....it's easier to swipe than to count out all the bills you're giving away. 
• Try the Envelope Method! Set aside money for certain things and limit yourself to only that amount. You'll be surprised with what you can live with. 

All in all, just be very aware of where your money is going. Spend less than you earn and make yourself a little bowl or piggy bank to drop some change into every once in awhile. 

Once again, you can save the abbreviated version of this blog post here. Thanks again to Kathleen for presenting us with such wonderful advice and tips. 

If you have any questions, feel free to ask them with the box in the upper right corner!