A lot has happened! In the last week I have...
- finished my summer job
- moved out of my summer apartment (car rental + gas = $140)
- started my new job
I'm still waiting for backpay from my former employer (no direct deposits so I have to wait until they mail me the money). I also just started my new job so I have to wait a bit until I start getting paid. That means that right now, I'm in limbo and can't make any other move towards the student loans or exchange savings.
I actually don't need to take any classes this term because I took so many extra ones that I have enough credits. However, I'm thinking about taking some extra classes at night and working full time during the day. Everyone I've talked to about this say it may not be a good idea--I commute for two to three hours everyday to and from work, and going to school at night may wear me down a little bit too much. Also, if I take these classes, I may not be able to graduate debt free. BUT these classes may really help me because they are in my field and I can apply what I learn to my job during the day... I am leaning towards taking one or two classes so that's a maximum of two nights (six hours) a week. I think the return on this kind of debt will be good.
Friday, August 31, 2007
Saturday, August 18, 2007
Average Debtload of Students
I just came across some statistics about student debt loads. Apparently, the average debt of a bachelor degree receipient is $19 500. For college graduates, the average debt load at graduation is $12 600.
My debt load right now is actually startlingly close to that figure. But I hope that when I graduate, that debt load will be much, much closer to $0. (You can't get much closer to 0 than 0! Just kidding.)
I also read that the average cost of tuition for a four year undergraduate program in Canada is $17 000. Now, I'm not sure I agree with this figure. None of my friends are paying that little for undergraduate programs--even the cheaper, regulated programs. Just looking at my friends, (yes, I ask them how much they pay in tuition), the figure that all of us are looking at for tuition for four years is between $24 000 to $40 000, depending on the program. This is for tuition alone, so not including textbooks, rent, transportation, and other stuff.
Just thought that was interesting to compare myself and my friends to what statistics say is the average across Canada right now. (I'm rather surprised that, unlike typical Canadian fashion, these debt statistics aren't aggregated according to geography or program. Like, for instance, we typically note that tuition is highest out east, so why calculate the average debt load for the whole country and not province by province?)
My debt load right now is actually startlingly close to that figure. But I hope that when I graduate, that debt load will be much, much closer to $0. (You can't get much closer to 0 than 0! Just kidding.)
I also read that the average cost of tuition for a four year undergraduate program in Canada is $17 000. Now, I'm not sure I agree with this figure. None of my friends are paying that little for undergraduate programs--even the cheaper, regulated programs. Just looking at my friends, (yes, I ask them how much they pay in tuition), the figure that all of us are looking at for tuition for four years is between $24 000 to $40 000, depending on the program. This is for tuition alone, so not including textbooks, rent, transportation, and other stuff.
Just thought that was interesting to compare myself and my friends to what statistics say is the average across Canada right now. (I'm rather surprised that, unlike typical Canadian fashion, these debt statistics aren't aggregated according to geography or program. Like, for instance, we typically note that tuition is highest out east, so why calculate the average debt load for the whole country and not province by province?)
Thursday, August 16, 2007
HSBC Trying to Keep Up with ING Direct
Ok, so ING Direct's savings account is going up to 3.75% on September 1st. Now HSBC is trying to keep up by going up to 3.75% also.
I suppose none of this really matters since PC Financial is still ahead of the pack. I just hope that PC Financial will move up to 4.25% for no good reason. But as long as I'm dreaming, I may as well hope I win the lottery. :)
I suppose none of this really matters since PC Financial is still ahead of the pack. I just hope that PC Financial will move up to 4.25% for no good reason. But as long as I'm dreaming, I may as well hope I win the lottery. :)
Wednesday, August 15, 2007
How I Shop for Clothes
Being frugal isn't just about saving money. There are always going to be times when we have to spend money. Clothing is one of those times. And since I love to shop for clothes, it's really important that I follow these rules I've set for myself.
1. Quality over quantity
It is so important to get quality over quantity. Who needs cheap looking pieces that don't fit when a few great quality ones will do? This was one of the hardest things for me to do start doing, cause I used to buy cheap stuff. $48 for a shirt? No thanks! I can get five of those at a cheaper store. But quality shirts will last longer and look better. Even better is finding quality shirts on sale. Another thing this works for is shoes. Better to invest in something good for your feet than own too many pairs that hurt your feet, right?
2. Shop with a strategy
One of women's downfalls, I think, is that they go in to a store and will buy just about anything they like. The way to get around that is to know what you want. Kind of like how most pf bloggers will go grocery shopping with a list and stick to it, shopping for clothes should be the same way. I have a checklist of staples (i.e. dark wash jeans, wool coat, trench coat, fitted blazer) that I allow myself to buy when I see the perfect one.
3. Only shop where there's a good return policy
I find that there is a positive correlation between a store's quality of clothing and the length of their return policy. The cheaper the clothes, the more likely they'll say "no refunds. Exchange only on unworn clothing with original tags and receipt." Stay away from these stores! Not only do they go against rule #1, but you can't change your mind! Whenever I buy something, I take it home and don't cut the tags. I try it out with different things I own to see if it fits with my closet. I think it over for a few days. If it works with my other clothes, and I still like it, then I keep it. Otherwise, I return it.
4. Shop for outfits, not pieces
Another reason why women tend to have closets full of crap is because they shop for pieces, not outfits. What I mean is that women will usually fall in love with a top or pants that simply doesn't go with anything else in her wardrobe. When that happens, then it's highly unlikely that it'll ever get worn at all! The best way to shop for clothing is to know what else each piece goes with, and then go home and try it on to see that it looks nice. If not, then there's always the return policy. If I have a great pair of pants, then I'll bring it to the store with me. If the top doesn't go with it, then I don't buy it.
5. Sometimes, full price is better than the clearance racks
Here's a good trap. Sometimes it's hard to pass up a $10 shirt on the clearance rack because it seems like such a good deal. But lots of clearance pieces aren't available in every size, and they might come with a shorter return policy. Those pieces just aren't worth it. It's better to spend the money on something that will work for sure than it is to get something that was cheap.
6. Think about the cost per wear
Sometimes it's hard to justify a dress that costs $68 plus tax. But sometimes it's more worth it than an outfit at half the price. When I get an expensive everyday dress but wear it several times a month, then I've already gotten value out of my purchase. It's much better to spend the money on something that I know I'm going to wear a lot than it is to buy a cheaper outfit I won't wear nearly as much.
7. Implement the 24 hour rule
Whenever I see something I like, I tell myself to go home and think it over. This is a great strategy, especially because I can think about how much I really want it. I like to think that it's "meant to be" if I can leave it in the store, think about it, and come back two weeks later to see it on sale for half off.
1. Quality over quantity
It is so important to get quality over quantity. Who needs cheap looking pieces that don't fit when a few great quality ones will do? This was one of the hardest things for me to do start doing, cause I used to buy cheap stuff. $48 for a shirt? No thanks! I can get five of those at a cheaper store. But quality shirts will last longer and look better. Even better is finding quality shirts on sale. Another thing this works for is shoes. Better to invest in something good for your feet than own too many pairs that hurt your feet, right?
2. Shop with a strategy
One of women's downfalls, I think, is that they go in to a store and will buy just about anything they like. The way to get around that is to know what you want. Kind of like how most pf bloggers will go grocery shopping with a list and stick to it, shopping for clothes should be the same way. I have a checklist of staples (i.e. dark wash jeans, wool coat, trench coat, fitted blazer) that I allow myself to buy when I see the perfect one.
3. Only shop where there's a good return policy
I find that there is a positive correlation between a store's quality of clothing and the length of their return policy. The cheaper the clothes, the more likely they'll say "no refunds. Exchange only on unworn clothing with original tags and receipt." Stay away from these stores! Not only do they go against rule #1, but you can't change your mind! Whenever I buy something, I take it home and don't cut the tags. I try it out with different things I own to see if it fits with my closet. I think it over for a few days. If it works with my other clothes, and I still like it, then I keep it. Otherwise, I return it.
4. Shop for outfits, not pieces
Another reason why women tend to have closets full of crap is because they shop for pieces, not outfits. What I mean is that women will usually fall in love with a top or pants that simply doesn't go with anything else in her wardrobe. When that happens, then it's highly unlikely that it'll ever get worn at all! The best way to shop for clothing is to know what else each piece goes with, and then go home and try it on to see that it looks nice. If not, then there's always the return policy. If I have a great pair of pants, then I'll bring it to the store with me. If the top doesn't go with it, then I don't buy it.
5. Sometimes, full price is better than the clearance racks
Here's a good trap. Sometimes it's hard to pass up a $10 shirt on the clearance rack because it seems like such a good deal. But lots of clearance pieces aren't available in every size, and they might come with a shorter return policy. Those pieces just aren't worth it. It's better to spend the money on something that will work for sure than it is to get something that was cheap.
6. Think about the cost per wear
Sometimes it's hard to justify a dress that costs $68 plus tax. But sometimes it's more worth it than an outfit at half the price. When I get an expensive everyday dress but wear it several times a month, then I've already gotten value out of my purchase. It's much better to spend the money on something that I know I'm going to wear a lot than it is to buy a cheaper outfit I won't wear nearly as much.
7. Implement the 24 hour rule
Whenever I see something I like, I tell myself to go home and think it over. This is a great strategy, especially because I can think about how much I really want it. I like to think that it's "meant to be" if I can leave it in the store, think about it, and come back two weeks later to see it on sale for half off.
Tuesday, August 14, 2007
Opportunity Costs
Awhile back, I had a couple of job offers. The job with the highest pay rate also had the worst boss and worst job description of all the offers. The job with the lowest pay rate had the best boss and best job description of all the offers. (Because I'm a student, I'm paid at student rates and can't negotiate the standardized pay rates.)
I asked my brother what I should do, and he said it was a no brainer: take the lowest paying job. I complained about the low pay rate, and he simply said to me: "opportunity cost." I had no idea what he was talking about.
He explained to me that many times in life you'll be given option A and option B. The problem is that one option will always come at the cost of another option. So for me, the lowest paying job would be most beneficial for my career in the long run--but it would come at an opportunity cost of lower pay rates in the short term.
I'm kind of faced with opportunity costs again now. If I don't go on exchange next year, I won't have to dip into my savings in order to pay off my student loans. In fact, I would be able to pay off all of my student loans and graduate with most of my savings intact. But the idea of being able to study in another country for five months, the chance to meet amazing new people from around the world, and the option of traveling in Europe, is just too good to pass up. I'll be able to go study in the UK, but it's going to come at the opportunity cost of being able to graduate debt free without using my savings.
But after all that is said and done, I know I'm extremely fortunate. I mean, what a 'dilemma' I have! I have savings AND the opportunity to study in another country. My parents are supportive of my decision to study abroad. That is more than anyone could ask for.
I asked my brother what I should do, and he said it was a no brainer: take the lowest paying job. I complained about the low pay rate, and he simply said to me: "opportunity cost." I had no idea what he was talking about.
He explained to me that many times in life you'll be given option A and option B. The problem is that one option will always come at the cost of another option. So for me, the lowest paying job would be most beneficial for my career in the long run--but it would come at an opportunity cost of lower pay rates in the short term.
I'm kind of faced with opportunity costs again now. If I don't go on exchange next year, I won't have to dip into my savings in order to pay off my student loans. In fact, I would be able to pay off all of my student loans and graduate with most of my savings intact. But the idea of being able to study in another country for five months, the chance to meet amazing new people from around the world, and the option of traveling in Europe, is just too good to pass up. I'll be able to go study in the UK, but it's going to come at the opportunity cost of being able to graduate debt free without using my savings.
But after all that is said and done, I know I'm extremely fortunate. I mean, what a 'dilemma' I have! I have savings AND the opportunity to study in another country. My parents are supportive of my decision to study abroad. That is more than anyone could ask for.
Monday, August 13, 2007
He Pays, She Pays
I usually go out with guys one on one. Not on dates, but just male friends that I have. They often offer to pay for dinner, and I'll say no, I'll pay my share. And then they'll refuse and pay my share anyway.
Uh, hello? We're students/fresh grads here. And we're not dating. So why are these guys paying for me?
I recently talked to a guy friend about it and he said that I should stop trying so hard to pay for my share. When I asked him why, he said I needed to let guys be guys and I was taking away their pride.
Uh, hello x2?
Apparently I'm too strong willed (read: stubborn) and they said I need to just back down and let them win on this. It makes no sense to me. I can see why guys should open doors for girls (it's charming!) or walk us home at night (how nice!) but paying for dinner when we're not dating? How unfair and unnecessary!
I think that pf bloggers would probably agree with me on this, but I think it's funny that other people don't. I've had my drinks paid for, my dinners paid for, desserts paid for, coffee paid for, and for what? Because they feel like they're less of a man if I pay for things? Errr.
Uh, hello? We're students/fresh grads here. And we're not dating. So why are these guys paying for me?
I recently talked to a guy friend about it and he said that I should stop trying so hard to pay for my share. When I asked him why, he said I needed to let guys be guys and I was taking away their pride.
Uh, hello x2?
Apparently I'm too strong willed (read: stubborn) and they said I need to just back down and let them win on this. It makes no sense to me. I can see why guys should open doors for girls (it's charming!) or walk us home at night (how nice!) but paying for dinner when we're not dating? How unfair and unnecessary!
I think that pf bloggers would probably agree with me on this, but I think it's funny that other people don't. I've had my drinks paid for, my dinners paid for, desserts paid for, coffee paid for, and for what? Because they feel like they're less of a man if I pay for things? Errr.
Saturday, August 11, 2007
I Finished My Undergraduate Thesis!!
Oh, what a day this is!
I finally finished my undergraduate thesis! What a happy day!
Now, the reason why I'm posting this on my pf blog is because I want to reward myself for finishing my thesis. In fact, an hour after finishing it, I had the urge to go out and buy myself a pair of jeans and a top. In order to stop myself from spending that much money, I treated myself to a coffee (much cheaper) and went straight home to read pf blogs and mull it over.
On the one hand, I have been working so hard at my thesis, and I want to reward myself. But why must a reward involve spending money and buying things? I thought it wouldn't matter, but I have been sitting around, thinking about how much I want a pair of jeans and a shirt that I saw at the mall. You'd think I would've given up by now and dropped the subject. But my mind is trying to justify it, going, "you deserve it! You finished your thesis! And it has been eight long months of hard work and stress in order to finish it!" What's more is the fact that it was an optional course that I did not have to take. (Can you not hear the desperation in my voice?)
I've mentioned before that I pay attention to my emotions in order to curb my spending, but wow, I don't know. I didn't think that my spending habits were thisclose to my emotions.
/edit: An update on the whole thesis reward: I got myself a pair of Tommy Hilfiger jeans, regularly priced at $80 but reduced to $22.
I finally finished my undergraduate thesis! What a happy day!
Now, the reason why I'm posting this on my pf blog is because I want to reward myself for finishing my thesis. In fact, an hour after finishing it, I had the urge to go out and buy myself a pair of jeans and a top. In order to stop myself from spending that much money, I treated myself to a coffee (much cheaper) and went straight home to read pf blogs and mull it over.
On the one hand, I have been working so hard at my thesis, and I want to reward myself. But why must a reward involve spending money and buying things? I thought it wouldn't matter, but I have been sitting around, thinking about how much I want a pair of jeans and a shirt that I saw at the mall. You'd think I would've given up by now and dropped the subject. But my mind is trying to justify it, going, "you deserve it! You finished your thesis! And it has been eight long months of hard work and stress in order to finish it!" What's more is the fact that it was an optional course that I did not have to take. (Can you not hear the desperation in my voice?)
I've mentioned before that I pay attention to my emotions in order to curb my spending, but wow, I don't know. I didn't think that my spending habits were thisclose to my emotions.
/edit: An update on the whole thesis reward: I got myself a pair of Tommy Hilfiger jeans, regularly priced at $80 but reduced to $22.
ING Direct Rates Going Up
ING Direct's Investment Savings Account (ISA) is going up from 3.50% to 3.75% on September 1st. I think they're trying to keep all of the customers they got from the Summer Savings Sale. But PC Financial is still higher at 4.00%.
Friday, August 10, 2007
Financial Philosophies
I've mentioned my brother on this blog once, and I guess it made him sound pretty bad because I talked about his spending. So I wanted to kind of clarify that.
I think that in the long run, my brother will make a lot more money than me. We're really close in age (we're both in university at the same time and will be graduating in the same year together) but we have really different philosophies towards money.
My brother lives by the idea that you have to spend money to make money. My parents are afraid he's only got the spending part down and nothing else, because that's all they see. But the truth is, my brother is really smart. While in school he invests his money into different types of investments, like stocks. And he manages to make some money at it too. He thinks that he should take risks and learn while he's young. Last year, he got a $1000 bursary. Instead of using it to pay for school, he started investing it. He said that he'd rather make mistakes now and learn from it so that he can make smarter financial decisions after he graduates.
My whole financial philosophy is slow and steady wins the race. I hoard money and put it into savings accounts. The idea of having debt makes me nervous, which is why I'm working so hard at having my debts paid off before graduating.
The thing is, I'm not enough of a risk taker. I'll always be working at making money, but my brother will always be making his money work for him. So even though he spends a lot now and doesn't have as much to show for it, I'm confident that he'll make more money than me in the long run. And that makes me both proud and happy as a big sister.
I think that in the long run, my brother will make a lot more money than me. We're really close in age (we're both in university at the same time and will be graduating in the same year together) but we have really different philosophies towards money.
My brother lives by the idea that you have to spend money to make money. My parents are afraid he's only got the spending part down and nothing else, because that's all they see. But the truth is, my brother is really smart. While in school he invests his money into different types of investments, like stocks. And he manages to make some money at it too. He thinks that he should take risks and learn while he's young. Last year, he got a $1000 bursary. Instead of using it to pay for school, he started investing it. He said that he'd rather make mistakes now and learn from it so that he can make smarter financial decisions after he graduates.
My whole financial philosophy is slow and steady wins the race. I hoard money and put it into savings accounts. The idea of having debt makes me nervous, which is why I'm working so hard at having my debts paid off before graduating.
The thing is, I'm not enough of a risk taker. I'll always be working at making money, but my brother will always be making his money work for him. So even though he spends a lot now and doesn't have as much to show for it, I'm confident that he'll make more money than me in the long run. And that makes me both proud and happy as a big sister.
Thursday, August 9, 2007
What a Horoscope
I was planning out how I'm going to pay for everything (school, living overseas, and student loans) and beginning to think I needed to work two jobs to pay for it all when I saw my horoscope for today.
Lol, is it a sign?
You would do better if you were to worry less about your finances. They are not as dire as you fear and are far more likely to improve.
Wednesday, August 8, 2007
First, Savings for Exchange
On my way home from work today, I was walking behind a girl with long hair. I thought to myself, "Wow, she looks rather manly from behind. How unfortunate." I kept walking behind her until I got to the red light. Then she turned around and I realized that she was actually a man.
I know this story has nothing to do with personal finance, but I was on my way to the bank to deposit my paycheque when this little story happened, so there.
In other news, I would love to put some money towards my student loans, but my first priority is saving up enough money for my exchange. So I'm going to put my student loan payment on hold while I save up money for my exchange. Hopefully that won't take too long to do, if I can manage to keep the costs at a minimum.
I know this story has nothing to do with personal finance, but I was on my way to the bank to deposit my paycheque when this little story happened, so there.
In other news, I would love to put some money towards my student loans, but my first priority is saving up enough money for my exchange. So I'm going to put my student loan payment on hold while I save up money for my exchange. Hopefully that won't take too long to do, if I can manage to keep the costs at a minimum.
Tuesday, August 7, 2007
August is Expensive And Other Random Crap
August is going to be expensive because my lease is up at the end of the month and my job is going to be over, so I'm going to be picking up and moving again, this time to another city. The car rental place told me it would cost $80 to rent a car for a day, plus the cost of gas.
I'm going to be starting another job in two weeks' time. I've been spoiled the last while because my current job has a very relaxed dress code. I usually wear a tank top, a tshirt over it, and jeans. But my new job is much more corporate so I'm going to have to start investing in actual work appropriate pieces. I guess it's about time; in a year I'll be done school anyway!
Today I picked up a pair of pants for $19.99, marked down from $89.99. I'm happy because I already had the matching blazer and pencil skirt as my one expensive interview suit. I also got a dress slip today that I've been watching like a hawk. For the last few weeks, I would walk in the store once a week on the way home to see if they had gone on sale. They went from $24.99 down to $19.99 and then down again to $11.99 today, so I finally picked one up.
In other news, I'm so not loving HSBC right now because they take way too long to transfer money. The other thing is that their website is pretty vague and not as straight forward as ING's. I might just keep my money in ING after all that hassle.
Lastly... I am almost done writing my undergraduate thesis! I plan on treating myself to something, but I'm not sure what. We'll see.
I'm going to be starting another job in two weeks' time. I've been spoiled the last while because my current job has a very relaxed dress code. I usually wear a tank top, a tshirt over it, and jeans. But my new job is much more corporate so I'm going to have to start investing in actual work appropriate pieces. I guess it's about time; in a year I'll be done school anyway!
Today I picked up a pair of pants for $19.99, marked down from $89.99. I'm happy because I already had the matching blazer and pencil skirt as my one expensive interview suit. I also got a dress slip today that I've been watching like a hawk. For the last few weeks, I would walk in the store once a week on the way home to see if they had gone on sale. They went from $24.99 down to $19.99 and then down again to $11.99 today, so I finally picked one up.
In other news, I'm so not loving HSBC right now because they take way too long to transfer money. The other thing is that their website is pretty vague and not as straight forward as ING's. I might just keep my money in ING after all that hassle.
Lastly... I am almost done writing my undergraduate thesis! I plan on treating myself to something, but I'm not sure what. We'll see.
Monday, August 6, 2007
US$ Account not CDIC Insured
I just found out that my US$ bank account is not CDIC insured. I always thought that if the CDN account was CDIC insured, then so would the USD account. Now that I think about it, I guess it makes a lot of sense. Then again, it's not like the US$ is going to collapse any time soon.
I'm on the hunt for high interest rates again. Some US$ accounts available in Canada:
Altamira at 4.75%
ING Direct at 3.50%
eTrade at 4.75%
I have some more comparing to do to figure out which ones have the least charges/fees and stuff.
I'm on the hunt for high interest rates again. Some US$ accounts available in Canada:
Altamira at 4.75%
ING Direct at 3.50%
eTrade at 4.75%
I have some more comparing to do to figure out which ones have the least charges/fees and stuff.
Saturday, August 4, 2007
A $3.50 Sigh of Relief
A few days ago I checked my ING Direct account to see how much interest I made for the month of July, and was alarmed when I did my math and saw that I was short $3.50 in my account. Now, normally, I'm not the type of person to sweat things like that, (oh, who am I kidding?) but I was kind of nervous that they'd made a bank error. I decided to wait a few days to let it sort itself out, and today I logged on to see that the $3.50 is now safely in my account. I guess someone had a programming glitch when they were calculating balances due to the new summer savings sale.
Sigh.
Sigh.
Friday, August 3, 2007
How I Save Money as a Student
Other websites tend to have these top ten tips for students on how to save money, and I find that they all say practically the exact same thing: have potlucks instead of dining out! Make sure you buy used textbooks instead of new ones! Don’t sign up for those credit card deals at the student union!
While these tips aren’t bad, per se, I find them practically useless. If you are a student and you really want to make a dent in your debt, then you have to take care of the big ticket items. I find that if you focus your efforts on the big things, then the little things will sort themselves out.
Instead of having tips for other people on how to save money, (I have no authority on this issue, I’m just a pf blogger and a student), I’m just going to write down ways that I save money while in school.
#1: Sublet instead of rent
This is the main way I save money. Rather than signing one year leases, I only sign sublets instead. Yes, that’s right, I move every four months of the year, for a total of three addresses per year. But I get great, affordable rates on housing all the time. I have bargaining power since people usually want to get sublets off their hands as fast as possible (I don't exploit it though). Even better yet is the knowledge that I won’t be forced to pay rent for time I won’t be living there. (I have a friend who moved after school was done, but he still had a lease. He couldn’t find a subletter and ended up paying a couple thousand dollars for a place he wasn’t living in.) Yeah, it’s a pain in the butt to keep moving houses, but that’s how I keep my costs down and I’ve gotten used to it. I’m now an Olympic speed packer.
#2: Take extra classes, save on tuition
At my school, I get a discount for courses I take over the maximum courseload. That means I pay a set amount for five classes, and then a discounted sixth. I’ve done this consistently and now I can actually graduate after 3.5 years instead of 4, all done at a discounted price! (I won’t be graduating early though because I’m going to take my time anyway). This one is a little tricky because it is harder to keep grades up. But it’s doable.
#3: Prolong those tuition payments—pay by installments
Some schools are ok with students paying in installments, or waiting until after they get their student loans. I find that colleges aren’t ok with this, but universities are. Note that these extensions on payments don’t have any late fees or interest attached to them; they’re just for students who need some time for their student loans to come in. Why pay the school on time when you can let it accrue interest? It’s not for everybody, though. It takes discipline to keep those thousands of dollars in a bank account and not touch it since it’s earmarked for tuition.
#4: Find the cheapest possible transportation home
Greyhound has lots of great student fare deals available. There’s the companion fare, for those times when there's a buddy to split costs with. Booking two weeks in advance gets another discount. Buying ten of them at the start of the year gets a lower price overall instead of buying them individually on the day of the trip. VIA Rail also has a similar option. I also carpool sometimes, which is the BEST way to go. Nothing like a car ride with some of your best friends for a good time. (I give them some money for gas and/or treat them to a burger).
#5: Stay in the same program/school
I have a few friends who have transferred to other programs or schools. The problem is that credits don’t usually transfer that well, and so my friends have to retake classes or take extra terms. That means extra costs to graduate.
#6: Get a job
There are so many ways to do this—summer jobs, working part time in school, co-op programs, internships, and apprenticeships. There are so many jobs looking for students. It’s a great way to develop a work ethic and enter the work force while saving some money to pay for school. This is good as long as the work hours don’t exceed 20 hrs per week for a full-time student, since it could decrease academic performance. I didn't work in the beginning, but I certainly made up for it from second year onwards. It's the only way I can keep up with my debt.
#7: Wait until the 2nd or 3rd week of class to buy textbooks
I don’t know about other students, but not all of my professors necessarily teach out of the textbooks they list as required reading. Usually it’s hard to tell whether the textbook is necessary or not until a few classes in when I listen for the prof to refer to the textbook. Better than getting a used textbook is not getting a textbook at all! Another variation of this is going to the library and only reading the chapters I need.
These are just some of the things that I focus on to keep my costs down... There are probably more but I don't remember them now. Please leave a comment if you have any other ideas!
While these tips aren’t bad, per se, I find them practically useless. If you are a student and you really want to make a dent in your debt, then you have to take care of the big ticket items. I find that if you focus your efforts on the big things, then the little things will sort themselves out.
Instead of having tips for other people on how to save money, (I have no authority on this issue, I’m just a pf blogger and a student), I’m just going to write down ways that I save money while in school.
#1: Sublet instead of rent
This is the main way I save money. Rather than signing one year leases, I only sign sublets instead. Yes, that’s right, I move every four months of the year, for a total of three addresses per year. But I get great, affordable rates on housing all the time. I have bargaining power since people usually want to get sublets off their hands as fast as possible (I don't exploit it though). Even better yet is the knowledge that I won’t be forced to pay rent for time I won’t be living there. (I have a friend who moved after school was done, but he still had a lease. He couldn’t find a subletter and ended up paying a couple thousand dollars for a place he wasn’t living in.) Yeah, it’s a pain in the butt to keep moving houses, but that’s how I keep my costs down and I’ve gotten used to it. I’m now an Olympic speed packer.
#2: Take extra classes, save on tuition
At my school, I get a discount for courses I take over the maximum courseload. That means I pay a set amount for five classes, and then a discounted sixth. I’ve done this consistently and now I can actually graduate after 3.5 years instead of 4, all done at a discounted price! (I won’t be graduating early though because I’m going to take my time anyway). This one is a little tricky because it is harder to keep grades up. But it’s doable.
#3: Prolong those tuition payments—pay by installments
Some schools are ok with students paying in installments, or waiting until after they get their student loans. I find that colleges aren’t ok with this, but universities are. Note that these extensions on payments don’t have any late fees or interest attached to them; they’re just for students who need some time for their student loans to come in. Why pay the school on time when you can let it accrue interest? It’s not for everybody, though. It takes discipline to keep those thousands of dollars in a bank account and not touch it since it’s earmarked for tuition.
#4: Find the cheapest possible transportation home
Greyhound has lots of great student fare deals available. There’s the companion fare, for those times when there's a buddy to split costs with. Booking two weeks in advance gets another discount. Buying ten of them at the start of the year gets a lower price overall instead of buying them individually on the day of the trip. VIA Rail also has a similar option. I also carpool sometimes, which is the BEST way to go. Nothing like a car ride with some of your best friends for a good time. (I give them some money for gas and/or treat them to a burger).
#5: Stay in the same program/school
I have a few friends who have transferred to other programs or schools. The problem is that credits don’t usually transfer that well, and so my friends have to retake classes or take extra terms. That means extra costs to graduate.
#6: Get a job
There are so many ways to do this—summer jobs, working part time in school, co-op programs, internships, and apprenticeships. There are so many jobs looking for students. It’s a great way to develop a work ethic and enter the work force while saving some money to pay for school. This is good as long as the work hours don’t exceed 20 hrs per week for a full-time student, since it could decrease academic performance. I didn't work in the beginning, but I certainly made up for it from second year onwards. It's the only way I can keep up with my debt.
#7: Wait until the 2nd or 3rd week of class to buy textbooks
I don’t know about other students, but not all of my professors necessarily teach out of the textbooks they list as required reading. Usually it’s hard to tell whether the textbook is necessary or not until a few classes in when I listen for the prof to refer to the textbook. Better than getting a used textbook is not getting a textbook at all! Another variation of this is going to the library and only reading the chapters I need.
These are just some of the things that I focus on to keep my costs down... There are probably more but I don't remember them now. Please leave a comment if you have any other ideas!
Wednesday, August 1, 2007
Green Light from Overseas
I just got an email saying that everything should be a-ok for my exchange next year! I'll be leaving in January, but I think tuition and housing bills will start coming my way this December. Therefore, I've added yet another money status thing on the side for UK exchange savings. My initial savings goal is $7000 to get some of the essentials out of the way like tuition and housing. The next part will be $3000 for living expenses and fun money (including travelling around the place). I'm not adding any expenses for the plane ticket yet because my dad said he might use his air miles points to get me that. :)
HSBC Direct Ready to Go
I looked at my blog on another computer and it looked horribly ugly, with LIME GREEN and shades of orange and whatnot. It looked funky on my computer, but oh well, I changed the layout to something else that was more universally appealing. On another note, I also need to go and check out these other blogs of amazing people who leave me comments! It's so exciting. It's like Christmas Day every time I log on here.
Anyway, on to topic. I signed up for HSBC Direct when I found out their interest rate is at 5.00%. It's promotional, but I decided to sign up anyway. Let me talk about this confusing process.
First, I went on this site and clicked on start application. I filled out the application online. I don't think they have a paper application. Anyways, after a whole bunch of questions, they ask to print off a signature sheet and mail them in a cheque with the initial deposit. The cheque had to have my name and address on it. I also needed to write down my confirmation number on the cheque. I had to mail it in to Vancouver, which is pretty far from where I am, so I decided to wait a week before getting nervous. It took in total almost two weeks before I saw the cheque cashed in my regular bank account. I don't like having my money floating out there, so I was nervous.
You'll notice that I had no way of knowing that my account was set up unless I saw my cheque cashed in my bank account. I didn't get a phone call, email, or letter sent to my home.
Next, I was wondering how I would be able to log on to the account online... Well, after searching the FAQs on the website, I found out I have to set up personal internet banking to do this! But to do that, I need a Personal Identification Number (PIN). How did I get that? I had to call in 1-877-621-8811 and after pressing a bunch of buttons, found an actual person to speak to. I found out that to set up personal internet banking, I also need the last ten digits of my bank card. But wait! What bank card? So the guy on the phone ended up having to tell me the last ten digits of my bank card as well as a temporary PIN. At this point, I'm getting confused. Anyway, so he finishes telling me what to do and puts me back on their phone system, where I punch in my temporary PIN and put in a new PIN. So now what?
After pushing a couple more buttons and getting nowhere, I hung up and got on HSBC Direct's online banking website. I plugged in my PIN and the last ten digits of the bank card that the guy on the phone told me. Then they ask me for more security questions! So after I fill those out, I'm able to finally log on to my account. There, I see my savings account and the $100 I deposited.
Next, I wanted to transfer over some more money... Well, their navigation looks like this:
First I clicked on Transfers, but that got me nowhere, so I clicked on Bank to Bank Transfers. (You might be thinking "Duh!" at this point, but man, I was tired and confused.) Clicking on Bank to Bank Transfers finally allowed me to transfer more money from my bank account to my HSBC direct account. I did that yesterday, and nothing has shown up yet on either bank account, so I'm hoping I did it right and waiting to see what else happens...
Man this was a confusing process.
Anyway, on to topic. I signed up for HSBC Direct when I found out their interest rate is at 5.00%. It's promotional, but I decided to sign up anyway. Let me talk about this confusing process.
First, I went on this site and clicked on start application. I filled out the application online. I don't think they have a paper application. Anyways, after a whole bunch of questions, they ask to print off a signature sheet and mail them in a cheque with the initial deposit. The cheque had to have my name and address on it. I also needed to write down my confirmation number on the cheque. I had to mail it in to Vancouver, which is pretty far from where I am, so I decided to wait a week before getting nervous. It took in total almost two weeks before I saw the cheque cashed in my regular bank account. I don't like having my money floating out there, so I was nervous.
You'll notice that I had no way of knowing that my account was set up unless I saw my cheque cashed in my bank account. I didn't get a phone call, email, or letter sent to my home.
Next, I was wondering how I would be able to log on to the account online... Well, after searching the FAQs on the website, I found out I have to set up personal internet banking to do this! But to do that, I need a Personal Identification Number (PIN). How did I get that? I had to call in 1-877-621-8811 and after pressing a bunch of buttons, found an actual person to speak to. I found out that to set up personal internet banking, I also need the last ten digits of my bank card. But wait! What bank card? So the guy on the phone ended up having to tell me the last ten digits of my bank card as well as a temporary PIN. At this point, I'm getting confused. Anyway, so he finishes telling me what to do and puts me back on their phone system, where I punch in my temporary PIN and put in a new PIN. So now what?
After pushing a couple more buttons and getting nowhere, I hung up and got on HSBC Direct's online banking website. I plugged in my PIN and the last ten digits of the bank card that the guy on the phone told me. Then they ask me for more security questions! So after I fill those out, I'm able to finally log on to my account. There, I see my savings account and the $100 I deposited.
Next, I wanted to transfer over some more money... Well, their navigation looks like this:
First I clicked on Transfers, but that got me nowhere, so I clicked on Bank to Bank Transfers. (You might be thinking "Duh!" at this point, but man, I was tired and confused.) Clicking on Bank to Bank Transfers finally allowed me to transfer more money from my bank account to my HSBC direct account. I did that yesterday, and nothing has shown up yet on either bank account, so I'm hoping I did it right and waiting to see what else happens...Man this was a confusing process.
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