I was randomly surfing the internet when I came across a post on wise financial decisions in college by I've paid for this twice already. The two smart decisions she says she made included not using credit cards and only getting student loans to pay for tuition. I started to think about what smart moves I've done financially while in university.
1. Avoiding leases like the plague.
I only signed a lease once during my university stint, and that was on purpose in order to learn about the tenant/landlord minefield. Apart from that one time, I never signed a lease. Leases generally carry a minimum duration of 12 months, and I was never at school for the whole year. Instead, I scoured rent ads for people who wanted lease takeovers and subletters. That way, I negotiated the duration of the lease to only be for the length of time I needed, and sometimes I would also bargain to have internet included in the monthly rent. (I think a lot of people go about this unethically, but I tried to be as fair as possible and not a bully).
2. Working full-time jobs in between classes.
Whenever I wasn't a full time student I was employed full time (except for one summer where I went to a few developing countries to do volunteer work). The money that I made from each of these jobs went first to my tuition, then to paying off student loans. After that I used my money to pay for fun stuff.
3. Setting financial goals.
I never, ever would have been able to tackle my finances if I had never started university with the goal of paying for it myself and walking away without debt. Yes, I still have debt now, but it's my choice (because I opted not to use my money to pay off my loans just yet). That's incredible freedom that I have.
Maybe in a few years I will look back and add a few other things I think were smart decisions.
Showing posts with label financial goals. Show all posts
Showing posts with label financial goals. Show all posts
Sunday, May 4, 2008
Sunday, January 20, 2008
Experience of a Lifetime
When I decided to go on exchange, I knew that I would be coming here by myself. My friends back home are quite happy returning to what they already know. They're in their last year at university and they're quite happy with it. Also, many feel like they can't afford to go on exchange.
Today I asked another exchange student why she came here to study without any of her friends from home. She said that all of them said it would be nice, but they didn't plan for it. When she told her friends that she was going on exchange, they replied "Oh you're so lucky." She commented that it wasn't luck that got her here to study abroad; it took financial planning on her part. I agree as well. The only reason why I was able to make this exchange opportunity a reality is because I planned for it financially. That's why financial goals are so important. It means the difference between the experience of a lifetime or just another term at school.
Today I asked another exchange student why she came here to study without any of her friends from home. She said that all of them said it would be nice, but they didn't plan for it. When she told her friends that she was going on exchange, they replied "Oh you're so lucky." She commented that it wasn't luck that got her here to study abroad; it took financial planning on her part. I agree as well. The only reason why I was able to make this exchange opportunity a reality is because I planned for it financially. That's why financial goals are so important. It means the difference between the experience of a lifetime or just another term at school.
Wednesday, September 5, 2007
A Family Meeting, a Twist, Where Next?
The other day I sat down with my parents and talked about where we would like to be a year from now, financially and otherwise. I brought up the idea of graduate studies or the possibility of working full time. Of course, if I continue with school, I'll pay for it myself.
My parents have always told me ever since I was young that they would like to live with me through their retirement. So I kind of made plans for that. I assumed that we would keep the family home. I thought I would move back home after university and give my parents a monthly contribution to support them through their retirement. But I'd also get to live rent free... So you could consider it giving my parents rent, if you want to think of it that way.
Apparently, I was wrong. (?!)
My parents told me that they are thinking about selling the house (!) and moving (!) far away (!).
I had not anticipated this!
My parents told me I am welcome to move with them, but this is my home now. I don't want to move away from this place. So now, I don't know. A year from now I might not be living here. I might have to find a place to live around here. What I do know is that I still have to make monthly contributions to my parents though.
Now I'm really thinking--downpayment on a place of my own? Renting? What's next?
My parents said that if I wanted to pursue graduate studies, that they would rather I do it right away (they are firm believers that you should never take gaps in between studies) and that they would hang on to the house so I could live here until I was done. Still, I don't know.
If I get a place of my own, I have to figure out how much I need, what kind of place I want, what I can afford, how much I can save, and what's my timeline. And it'll be hard since I'll be giving my parents a monthly contribution too.
If I go to school, I won't be able to give my parents any money. They may feel obligated to keep the house so I can live here while going to school.
If I get a job... Oh wait! Is anybody even willing to hire me?
Man, life after graduation is going to be more complicated.
My parents have always told me ever since I was young that they would like to live with me through their retirement. So I kind of made plans for that. I assumed that we would keep the family home. I thought I would move back home after university and give my parents a monthly contribution to support them through their retirement. But I'd also get to live rent free... So you could consider it giving my parents rent, if you want to think of it that way.
Apparently, I was wrong. (?!)
My parents told me that they are thinking about selling the house (!) and moving (!) far away (!).
I had not anticipated this!
My parents told me I am welcome to move with them, but this is my home now. I don't want to move away from this place. So now, I don't know. A year from now I might not be living here. I might have to find a place to live around here. What I do know is that I still have to make monthly contributions to my parents though.
Now I'm really thinking--downpayment on a place of my own? Renting? What's next?
My parents said that if I wanted to pursue graduate studies, that they would rather I do it right away (they are firm believers that you should never take gaps in between studies) and that they would hang on to the house so I could live here until I was done. Still, I don't know.
If I get a place of my own, I have to figure out how much I need, what kind of place I want, what I can afford, how much I can save, and what's my timeline. And it'll be hard since I'll be giving my parents a monthly contribution too.
If I go to school, I won't be able to give my parents any money. They may feel obligated to keep the house so I can live here while going to school.
If I get a job... Oh wait! Is anybody even willing to hire me?
Man, life after graduation is going to be more complicated.
Thursday, July 12, 2007
Current Financial Goals (now to 2008)
When I started university, I wanted to pay for school by myself. I always assumed that if I could pay for school, then that would free up money for my dad to retire as soon as possible--something I want him to do for his own health and happiness. So that's goal #1: pay for school by myself. So far, so good. (If you can call paying for school by using a substantial chunk of borrowed money actually "paying for school by myself," lol).
When I thought about paying for school by myself, I asked the admissions officer how much tuition would cost. I worked out tuition and rent to be at a base of $40 000, in addition to living expenses, transportation costs home, and textbooks. I figured I'd be able to pay for school by myself, but the idea of graduating with $40 000 in debt?! No thanks! So that led to goal #2: graduate with no student loan debt.
Luckily, I might just be able to accomplish that goal. I have $21 033 in student loan debt that I don't plan on increasing--so $21 033 has become the magic total student loan debt number I need to pay off. I was lucky enough to get $20 000 USD in scholarship money, of which I've used $9000 USD to pay for school. I'll also be able to make more than $21 000 CDN from working while in school. Things are going to be pretty tight, but my desire to go on exchange means goal #3: save as much as possible from now until April 2008 to pay down my loans AND go on exchange! Unfortunately, I'm not saving as much as I could, but I'm not going to kick myself over every $5.
These goals have taught me to become more and more financially responsible for myself. I've gotten credit cards that I pay in full every month, used budgets, shopped around for the best bank accounts, and keep my money in high interest accounts. I'm so glad I'm learning so much that I can apply to my future financial goals--like saving up for graduate studies or a downpayment on property. I think it'll be amazing to look back on these posts in a year or two and think about how far I've come along.
When I thought about paying for school by myself, I asked the admissions officer how much tuition would cost. I worked out tuition and rent to be at a base of $40 000, in addition to living expenses, transportation costs home, and textbooks. I figured I'd be able to pay for school by myself, but the idea of graduating with $40 000 in debt?! No thanks! So that led to goal #2: graduate with no student loan debt.
Luckily, I might just be able to accomplish that goal. I have $21 033 in student loan debt that I don't plan on increasing--so $21 033 has become the magic total student loan debt number I need to pay off. I was lucky enough to get $20 000 USD in scholarship money, of which I've used $9000 USD to pay for school. I'll also be able to make more than $21 000 CDN from working while in school. Things are going to be pretty tight, but my desire to go on exchange means goal #3: save as much as possible from now until April 2008 to pay down my loans AND go on exchange! Unfortunately, I'm not saving as much as I could, but I'm not going to kick myself over every $5.
These goals have taught me to become more and more financially responsible for myself. I've gotten credit cards that I pay in full every month, used budgets, shopped around for the best bank accounts, and keep my money in high interest accounts. I'm so glad I'm learning so much that I can apply to my future financial goals--like saving up for graduate studies or a downpayment on property. I think it'll be amazing to look back on these posts in a year or two and think about how far I've come along.
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