I just found this great new site to help college students handle the challenge of money while they are in school. This has been in my experience the number one source of stress for students that I work with. Students are always wondering when their loans will be in, if they get extra grant money this quarter, i f they have enough for books, or how they will pay the rent. This site has some nice tips about how to stay on a budget, say no to unnecessary purchases and reduce that money stress so you can focus on your school work.
Showing posts with label Budget. Show all posts
Showing posts with label Budget. Show all posts
September 19, 2013
September 3, 2013
Money Tips
Here is a link to a great read on how to stay on top of your money needs while you are in school. Enjoy
June 20, 2013
Start Saving
Here is an article I came across that details the important role of saving for college. I realize that many of those who are in care may not come into college with a lot of money, but the article still made me think about how it is so important to plan ahead when it comes to your school costs. It is vital to save the grant money you do get. You want to make sure you have enough money for you tuition, tools, books and other costs for school. But, the best plan is to save as much as you can while you are in school so you can use the Passport scholarship, Governor's scholarship, ETV, Worker Retraining or other funding you get for living. The money can go a long way, but you don't want to go wild on your living expenses. Get a cheap phone, take the bus, find a room mate to share your housing costs with. All of the cost cutting steps you make for the quarter will add up and you should be able to avoid taking out a student loan. Remember to see me if you have needs with a bus pass, food, school supplies, or access to common books. Let me know if you want help planning out a budget.
August 31, 2011
Back to School Money Tips
Here are some money tips to consider over your summer break and get ready to start school again at CPTC.
"Sit Down and Evaluate
Take a few minutes to look at your bank accounts and really understand what you see. If you don't, you run the high risk of living these next few months like Gomer Pyle on Valium, with no clue about your money. You don't want that, do you?
Update Your Game Plan or Start One
A budget is your game plan, where you tell your money what you want it to do. This isn't rocket science! Just give every dollar a name on paper before you get your paycheck so it won't all be gone in a week.
Put Cash in Envelopes
Since you spend 12–15% more when you use plastic than when you use cash, try the envelope system. Take some envelopes, write the budget categories on the envelopes, and use only the allotted money to purchase specific things. If an envelope is empty, don't buy anything else in that category for the month. It can wait.
Set Boundaries
A lot of this centers around the ability to say the word NO and really mean it! Sometimes you're going to have to tell yourself, your spouse, and your kids "NO! It's not in the budget!" so be prepared. It's a phrase you'll be glad you know how to say. "
- Taken from the Dave Ramsey eNewsletter
"Sit Down and Evaluate
Take a few minutes to look at your bank accounts and really understand what you see. If you don't, you run the high risk of living these next few months like Gomer Pyle on Valium, with no clue about your money. You don't want that, do you?
Update Your Game Plan or Start One
A budget is your game plan, where you tell your money what you want it to do. This isn't rocket science! Just give every dollar a name on paper before you get your paycheck so it won't all be gone in a week.
Put Cash in Envelopes
Since you spend 12–15% more when you use plastic than when you use cash, try the envelope system. Take some envelopes, write the budget categories on the envelopes, and use only the allotted money to purchase specific things. If an envelope is empty, don't buy anything else in that category for the month. It can wait.
Set Boundaries
A lot of this centers around the ability to say the word NO and really mean it! Sometimes you're going to have to tell yourself, your spouse, and your kids "NO! It's not in the budget!" so be prepared. It's a phrase you'll be glad you know how to say. "
- Taken from the Dave Ramsey eNewsletter
December 13, 2010
The Debt Snow Ball
One of the things that was discussed in our Money 101 series was the importance of paying off debt. This is important to think about because debt is so common place in our society. You see it with cars, education, credit cards and other items. In the series we talked about getting out of debt and staying out of debt. This is allows you to use the income that you get from your employment to go farther towards other goals, like retirement, or saving for our home. I recently came across an article from Dave Ramsey that explains the process of working through paying of your debts.
"It is perhaps the most life-changing Baby Step that you'll experience in your Total Money Makeover. We're talking about Baby Step 2, where you get rid of your debts one at a time using the debt snowball.
It's called the debt snowball because of how it works. When you were a kid rolling a snowball in the backyard, the best way to do it was to pack some snow into a tight ball, then start rolling it through the yard. Your snowball would become a snow boulder much quicker than it would if you just built it up by hand. Remember that comparison.
Before you start the snowball, make sure you are current on all your bills and have your $1,000 starter emergency fund saved up.
In the debt snowball, you list your debts smallest to largest by amount owed. Don't worry about interest rates. We don't care if one debt has a 2% rate and another one has a 22% rate. If you'd done the math properly, you wouldn't have gone into credit card debt in the first place. List the debts smallest to largest.
Now it's time to make progress. Pay minimum payments on all of the debts except the smallest one, and attack that with a vengeance. We're talking gazelle intense, sell-out, get-this-thing-out-of-my-life-forever energy. Once it's gone, take the money you were putting toward that debt, plus any extra money you find, and attack the next debt on the list. Once it's gone, take that combined payment and go to the next debt. Knock them out one by one.
Here's an example. Let's say you have the following debts:
•$500 medical bill (payment of $50 a month)
•$2,500 credit card debt ($63 payment)
•$7,000 car loan ($135 payment)
•$10,000 student loan ($96 payment)
In the debt snowball, we would list the debts in that order (remember, ignore the interest rates). Start by making the minimum payments on everything but the medical bill. For this example, let's say you find an extra $500 each month to go toward that debt by getting an extra job, slashing your lifestyle to nothing, and going crazy. That's very doable.
Since you are paying $550 a month on the medical bill (the $50 payment plus the $500 extra), that medical bill won't even last a month. Now, take that $550 and attack the credit card debt. When that happens, you'll be paying $613 on the plastic (the freed up $550 plus the $63 minimum payment). In about four months, wave bye-bye to the credit card. You've paid it off!
Now we're at the car debt. Punch that car note in the face to the tune of $748 a month (the freed-up $613 plus the $135 monthly payment). In 10 months, it will drive off into the sunset. Now you're on fire!
Once you've gotten to the student loan, you will be putting $844 a month on it. It will only last about 12 months. After that, Sallie Mae better get used to living somewhere else, because you've kicked her out!
Because of hard work and sacrifice, you have paid off $20,000 in debt in only 27 months using the debt snowball! Congratulations!
The point of the debt snowball is behavior modification. In our example, if you start paying on the student loan first because it's the largest debt, you won't see it leave for a while. You'll see numbers going down on a page, but that's it. Pretty soon, you'll lose steam and stop paying extra, but you'll still have all your debts hanging around.
But when you ditch the small debt first, you see progress. That one debt is out of your life forever. Soon the second debt will follow, and then the next. When you see that the plan is working, you'll stick to it. By sticking to it, you'll eventually succeed in becoming debt-free!
The only time you might make an exception to the debt order is if one of the debts is the IRS. You do not want them in your life, so it would make sense to move a tax bill up in priority. Once it's gone, proceed with the debt snowball like normal.
By the time you are paying on the bigger debts, you have so much more cash freed up from paying off the earlier debts that it creates a "debt snowball" effect. You are putting hundreds of dollars a month on your bills instead of a few bucks here and there. You build momentum, and that changes your behavior and helps you get out of debt and stay that way."
Taken from the December 2010 Issue of the Dave Ramsey eNewsletter
"It is perhaps the most life-changing Baby Step that you'll experience in your Total Money Makeover. We're talking about Baby Step 2, where you get rid of your debts one at a time using the debt snowball.
It's called the debt snowball because of how it works. When you were a kid rolling a snowball in the backyard, the best way to do it was to pack some snow into a tight ball, then start rolling it through the yard. Your snowball would become a snow boulder much quicker than it would if you just built it up by hand. Remember that comparison.
Before you start the snowball, make sure you are current on all your bills and have your $1,000 starter emergency fund saved up.
In the debt snowball, you list your debts smallest to largest by amount owed. Don't worry about interest rates. We don't care if one debt has a 2% rate and another one has a 22% rate. If you'd done the math properly, you wouldn't have gone into credit card debt in the first place. List the debts smallest to largest.
Now it's time to make progress. Pay minimum payments on all of the debts except the smallest one, and attack that with a vengeance. We're talking gazelle intense, sell-out, get-this-thing-out-of-my-life-forever energy. Once it's gone, take the money you were putting toward that debt, plus any extra money you find, and attack the next debt on the list. Once it's gone, take that combined payment and go to the next debt. Knock them out one by one.
Here's an example. Let's say you have the following debts:
•$500 medical bill (payment of $50 a month)
•$2,500 credit card debt ($63 payment)
•$7,000 car loan ($135 payment)
•$10,000 student loan ($96 payment)
In the debt snowball, we would list the debts in that order (remember, ignore the interest rates). Start by making the minimum payments on everything but the medical bill. For this example, let's say you find an extra $500 each month to go toward that debt by getting an extra job, slashing your lifestyle to nothing, and going crazy. That's very doable.
Since you are paying $550 a month on the medical bill (the $50 payment plus the $500 extra), that medical bill won't even last a month. Now, take that $550 and attack the credit card debt. When that happens, you'll be paying $613 on the plastic (the freed up $550 plus the $63 minimum payment). In about four months, wave bye-bye to the credit card. You've paid it off!
Now we're at the car debt. Punch that car note in the face to the tune of $748 a month (the freed-up $613 plus the $135 monthly payment). In 10 months, it will drive off into the sunset. Now you're on fire!
Once you've gotten to the student loan, you will be putting $844 a month on it. It will only last about 12 months. After that, Sallie Mae better get used to living somewhere else, because you've kicked her out!
Because of hard work and sacrifice, you have paid off $20,000 in debt in only 27 months using the debt snowball! Congratulations!
The point of the debt snowball is behavior modification. In our example, if you start paying on the student loan first because it's the largest debt, you won't see it leave for a while. You'll see numbers going down on a page, but that's it. Pretty soon, you'll lose steam and stop paying extra, but you'll still have all your debts hanging around.
But when you ditch the small debt first, you see progress. That one debt is out of your life forever. Soon the second debt will follow, and then the next. When you see that the plan is working, you'll stick to it. By sticking to it, you'll eventually succeed in becoming debt-free!
The only time you might make an exception to the debt order is if one of the debts is the IRS. You do not want them in your life, so it would make sense to move a tax bill up in priority. Once it's gone, proceed with the debt snowball like normal.
By the time you are paying on the bigger debts, you have so much more cash freed up from paying off the earlier debts that it creates a "debt snowball" effect. You are putting hundreds of dollars a month on your bills instead of a few bucks here and there. You build momentum, and that changes your behavior and helps you get out of debt and stay that way."
Taken from the December 2010 Issue of the Dave Ramsey eNewsletter
June 16, 2010
Money 101 - Coming this Summer
Here is an exciting announcement. This summer we are working on getting a 4 week budgeting class going for all club members. The plan is to meet in the Student Center once a week, eat some food and go through a class on how to create a budget, save money, and pay off debt. It is going to be a life changing class. The best part is, when we end the class, you will still have access to the materials for a year. Here is a short video to get you excited about it. More details will follow by email, blog, text, voicemail and all other means to get you to this class. Did I mention that I will have a little prize for all of you who attend all of the sessions? Have to attend to find out what it is.
April 12, 2010
Self Sufficiency Calculator
Check out this site to determine what wage you need to become self sufficient. You have to give some personal information but it is a great way to get a range of what type of income you need to look for. As you go through your training it is good to start budgeting and saving. This calculator could give you a good idea of what to work towards in your goals and in your quest for employment. How about that!
January 19, 2010
Feed the Pig
I just saw this site. Kind of a creepy mascot, but it is a great resource. They promote saving money, and have a lot of cool tools that can help you. They also have some links to budgeting, paying for college, and dealing with student loans. Check it out here.
December 18, 2009
Student Debt Report
Here is an article I came across that has a report on student debt. You may not be using loans to pay for school, but if you are this is a great reminder about being on a budget while in school and when you graduate. You can read the article here. Below you will find an excerpt from the article. Enjoy.
"Nationwide, average debt for graduating seniors with loans rose from $18,650 in 2004 to $23,200 in 2008, or about six percent per year. State averages for debt at graduation in 2008 ranged from highs near $30,000 to a low of $13,000. High-debt states are concentrated in the Northeast, while low-debt states are mostly in the West. At the college level, average debt varied even more, from $5,000 to $106,000. Colleges with higher tuition tend to have higher average debt, but there are many examples of high tuition and low average debt, and vice versa.
Meanwhile, employment prospects for young college graduates have soured along with the economy. The unemployment rate for college graduates aged 20-24 was a challenging 7.6% in the third quarter of 2008, the highest third quarter rate since 2002; by the third quarter of 2009 it had risen to 10.6%, the highest on record. The majority of the class of 2008 fell into this age group in both years."
August 3, 2009
Budget Help
One of the things I have noticed in working with students is how much money can be a source of stress. Whether is it running out of money for rent, or not being able to buy books. It is hard enough to be in college for the first time and then add on the pressures of finances. Each person needs to have a plan for their money while they are in school. If you don't have a plan, nothing is going to happen. So, creating a budget is how you have a plan for your money. I have worked towards this in my personal life and have gotten pretty good. I am by no means a professional money guy, but I am passionate about the subject and I really want to see you succeed while you are getting something more valuable than money at CPTC, an education. So, I would love to help you one on one create a budget and teach you how to develop a plan while you are attending.
Here is a link of a potential budget to start from. Enjoy
Here is a link of a potential budget to start from. Enjoy
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