The Black Friday Freakout!

It's coming! In less than two weeks the single day all shopaholics have circled in red on their calendars will hit us. It is, of course, Black Friday. Even for those of us who live in Canada, and are close enough to the border with our southern neighbours, Black Friday has taken on a life of it's own. I have co-workers who book the Thursday and Friday off (a year in advance) so they can stay in a motel in the U.S overnight on Thursday - shop their brains out on Friday - and bring back more stuff duty-free because they've stayed a 24 hour period. Wow!
                                
So what are my thoughts on Black Friday? Truthfully - I have to say that I see it as a good opportunity to practice smart money thinking on everyone's part. If you see a store has something you really need, or a gift you plan on getting for someone for Christmas anyhow, at a really good price - go for it! But ONLY IF you can work it into your already pre-determined budget. Don't spend the electricity payment on that 42" LED-HD TV if it will set you back a month on your bills. Also - do not rack up the credit card because then you're just adding interest to the whole equation. But if you've got money saved, this may be a good chance to save a few dollars on already planned purchases.
The key is to be smart about it. I hope everyone knows by now that stores will put just a few items on major price slash to get you in the door. Other items are then only slightly discounted or at regular price but 'labelled' as sale items with an inflated original price. Do your research between now and next Friday and figure out exactly what you are going to buy and stick to your list. It's the impulse items which end up breaking the bank as you walk around the store with your prized purchase already in the cart.
The Black Friday Freakout doesn't have to end up putting you in dire financial straits heading into the holidays. Use it as a chance to set yourself up with a few gifts in the closet and a few dollars saved still in your bank account at the end of the day.

Do The Small Things Really Matter?

Are you a penny pincher? Do you find the best deals and pay the least amount possible for anything you buy? Are you connected to where your money is going every month and taking steps to hold on to as much as you can? If you answered 'Yes' to any, or all, of those questions, you are living a 'frugal' life. The problem is, some of the 'experts' are saying being frugal isn't enough to really change your financial situation. They tell you to focus instead on maximizing your income, getting better jobs which pay more, investing your money where it's going to give you a better return. (I always find that last one funny - considering most people reading personal finance advice blogs probably don't have the extra money available to actually invest in anything) I agree with the idea that you should work on those areas, when it's appropriate and feasible to do so in your life. But for college students, being 'frugal' and money smart is pretty much the only way to control your financial situation.
Let's take a look at the numbers, shall we? I've given almost 100 useful tips and tricks in my book (which I promise not to plug - again - because you can click on the links on the side if you would like more information) (Wait - was that non-plug actually a plug in disguise?) which can save students money while they are away at school. Buying no-name groceries, partying at home, mass transit, etc. etc. - they all add up. Let's use a very, very conservative number and say that using a few of the tips together will save a student around $200 a month compared to what they would have spent otherwise. Students typically spend 8 months of the year away at school (Sept. through April). So a student could very easily save (8 months x $200/month) or $1600 over the course of one school year. Multiply that by a four year programme and that totals $6,400 in savings.
I don't know about you - but over $6,000 in my pocket, or not borrowed, in a four year period is a pretty significant chunk of change. It's enough to potentially make a difference in how much a student needs to borrow,or even if they have to take out a loan at all. Since the average student winds up with @$25,000 in student loan debt - knocking that down to under $19,000 is a good start.
Do the small things matter when it comes to being money smart? Absolutely!! When the only thing you can control is how much you pay out - being frugal and controlling your spending will go a long way to putting more money in your pocket - or less money in the hands of your lenders when you are done school and heading out into the real world. Stay smart - increase your PF IQ - the little things add up! Cheers!

Budget For Your Needs - and Wants!!

Say the word 'budget', and people tend to get a little unnerved. Budgeting brings up images of having no cash in your pocket - not being able to do anything fun - and living a life of TV and Ramen noodles. Done properly - nothing could be further from the truth.
Setting yourself up on a budget is nothing more than telling your money where it is going. Want money in your pocket - put it in the budget. Want one night out a week - plan for it in your budget. It's just a matter of planning out exactly where you're going to spend your dough - and balancing the income with the out-go. There are a number of different ways to do your budgeting and there are lots of resources online to help you put your budget on paper.
The first thing you have to do is track your spending for a month to see where your money is going now. Keep every receipt and track every dollar you spend. At the end of the month write it all out and seperate every expenditure into the categories you want to set up in your budget. Most of the time it will be a real eye opener when you see how much you're spending on things like take-out food and those morning coffees.
The main thing is you have to know where your money is going - or where it went. Otherwise, how will you figure out if you're going to have enough money at the end of the month, instead of too much month at the end of the money.
Once you've figured out how you spend your money, the next step is to set up your budget to stay within your available cash limit. Your income and your expenses must always offset each other. That includes extras such as savings, charitable giving if you think that's important as a student, and every penny that leaves your pocket or bank account. But as I mentioned earlier, budget in the extras like one night out per week if you want - as long as you are able to balance the numbers when all is said and done.
There is lots more to the whole process (and they will be the subjects of future posts) but basically make a budget - stick with it - give it a chance - It will help you on the road to being a Money Smart Student!!

Entertainment not "Spendtertainment"

Today let's talk a bit about spending your entertainment dollars wisely. If you've done a good job budgetting your money you should still be able to have a little entertainment in your life. Movies, nights out with friends, nights in with friends - there are lots of things to do as a group or a couple - even on a budget.
One good rule to live by though is not to spend your entertainment dollars somewhere where spending money is the main activity. This would include places like a Casino or a racetrack. If you've worked hard to save up those extra dollars in order to have a bit of fun - why waste the money on games of chance or on the horses?! There are tons of ways to have fun with your friends or significant other without breaking the bank and taking a chance of going overboard in the process.
Budget entertainment right into your monthly plan - and spend those dollars wisely because you've earned it!

The Time Is Now!!

Now is the time to start planning your finances for NEXT school year - especially if it will be your first year away at college/university. Where is my money going to come from? How much will I need? How do I get the maximum benefit out of every dollar I plan on spending?
There are a lot of things to think about. The more time you take to do some research - find extra sources of income (scholarships/grants) - and prepare yourself, the easier the transition will be to life on your own.
There are lots of resources available on the internet to help you manage your finances. There are budgetting tools galore and general information by the website-full.
Take the time NOW to start managing your money in preparation for next year. You'll be glad you did once you take those first steps out into the Real World!

The Dreaded "B" Word (Budget that is)

Say the word 'budget', and people tend to get a little unnerved. Budgeting brings up images of having no cash in your pocket - not being able to do anything fun - and living a life of TV and Ramen noodles. Done properly - nothing could be further from the truth.
Setting yourself up on a budget is nothing more than telling your money where it is going. Want money in your pocket - put it in the budget. Want one night out a week - plan for it in your budget. It's just a matter of planning out exactly where you're gong to spend your dough - and balancing the income with the out-go. There are a number of different ways to do your budgeting and there are lots of resources online to help you put your budget on paper. We'll cover a couple in a future post.
The main thing is you have to know where your money is going before you can figure out if you're going to have enough money at the end of the month..instead of too much month at the end of the money.
Make a budget - and stay Ready for the Real World!