Rich Student, Poor Student - Post #1

So you say you’re a poor, deprived, university student that doesn’t have two cents to rub together, well I don’t buy it. The truth of the matter is that University is expensive and there are a lot of people that can’t afford post-secondary education, but if you are a Dal student then you are NOT one of those people. There are also a lot of students that work one or even two jobs while going to school and follow all of the advice that I have to give but are still strapped for cash, and those people I applaud. The reality though is that the majority of students are not handling their money properly and will end up graduating in a huge amount of debt, or leaching off their parents to get through the degree. This is not necessary. I’m not saying you shouldn’t leach off your parents, but if you do you should end your degree with $50,000 in your bank.

What do I know about how to handle money? I have been at Dal for 6 years and when I graduate this year I will have a very small amount of student loans, with money in investments that match it, and I will be walking into a well paying full-time job. I am not from a wealthy family and I have paid my entire tuition myself by working while in school and during the summers. I have received some government loans but no scholarships or bursaries, and in the later years was denied government loans because my mom made too much money, even though I didn’t get any of it (this happens to a lot of students from middle class families). I should point out to be fair that I did not have to pay rent while in University but at times I did own vehicles that cost me over $500/month to own and operate (almost enough to live by Dal). This is something that anyone of you can accomplish, and probably do a better job of, by following some advice. There are 7 steps that I have thought of in order to keep you financially stable and due to the length I will post them one or two at a time (every half week or so), they are as follows:

Step 1: Set a Goal
Step 2: Get a Job
Step 3: Milk the System
Step 4: Be Thrifty
Step 5: Be Smart
Step 6: Invest Everything, Especially Your Student Loan
Step 7: If Need Be, RRSP!

Step 1: Set a Goal

The best way to do anything is to set a realistic goal. This should always be your first step, regardless of what you are doing. When you are setting a goal there are two things you need to be careful not to do; do not underestimate yourself, and don’t set a goal so high you will get frustrated and give up. You need to make sure that your goal is measurable and achievable. Another key to this step is to set it early. I set my goal too late and might miss it by a couple thousand dollars. My goal was to graduate debt free (this was achievable for me because I do not pay rent), your goal may be to graduate with a certain amount of debt or investment. If you don’t pay your tuition then your goal might be to graduate with enough money to put a down payment on a house, if you pay tuition and rent it might be to graduate $20,000 in debt, either way a goal is important. I know that there are some of you out there that are thinking there is no way that you could ever get enough money to even think about having a financial goal, your wrong and we’ll see why in later posts. In closing I would like to say that there are two things that can go along way towards helping you financially; keep visiting this blog and reading the other tips, and read “The Wealthy Barber” by David Chilton, it will be the most valuable book you have ever read. Step 2 will follow in the days to come.