SIMPLE MONEY TIPS

Do and DON'T

Don't get a credit card unless you absolutely need one. Those guys sitting behind the sign-up table are not there to help you. They're there to make money.

Avoid non-academic debt. It might seem like a good idea to put that Xbox on a credit card, but it's not. Focus on developing good money skills with cash. Worry about credit later.

Save and then splurge. If you decide you must have that Xbox, then save for it. Wait until you can pay cash.

Pay your bills on time. Basic advice, but it's surprising how many people lose track of things. If you pay your bills as they arrive, you won't have to worry about forgetting them.

Organization and Planning

Track your spending. Use a notebook, or use Quicken if you have it. Good records will prevent you from getting overdrawn at the bank or charging more than your credit limit. This habit also allows you to detect spending patterns.

Make a budget. It doesn't have to be fancy. At the start of the month, estimate how much money you'll receive and decide where needs to go. Remember: you don't need to spend it all.

Save your receipts. Put them in a shoebox under your bed if you must, but hold onto them. You'll need to be able to compare them with statements at the end of the month. And some you'll need to keep for several years.

Campus Life

It seems like there are a hundred thing competing for your money. It's hard to know what to do. Here are some smart ways to save money on campus.

Buy used textbooks. You're just going to sell them back at the end of the term. (Or end up wishing you had done so five years from now.) You don't need new textbooks.

Skip spring break. Forget the long road trips. You can have a lot of fun for cheap close to campus. (My college used to organize economical group trips; yours probably does, too.) You might be surprised at how fun it can be to stay on campus, too.

Don't hang out with big spenders. Some kids have parents with deep pockets. Other kids are well down the road to financial trouble. Hanging out with them can lead you to spend more than you can afford.

Take advantage of campus activities. There's always something to do. Attend free movie festivals. Pay a few bucks to see the local symphony every month. Support the sports teams. Attend lecture series. Get the most from your student ID!

Personal Life

Take care of yourself. Your mother isn't around to remind you to brush your teeth. Nobody's going to scold you for eating three bowls of Cap'n Crunch. Self-discipline is more important now than it ever has been in your life.

Go to class. You're in college to learn. Everyone skips now and then, but don't make it a habit. What you learn and do now will have a profound impact on the rest of your life.

Get involved. Staying busy staves off boredom. It also helps you build skills and form social networks that will last a lifetime. Try out for a play. Join the astronomy club. Write for the school paper. Find something that sounds fun to you and do it. Take risks!

Stay active. A healthy body costs far less to maintain than an unhealthy body. You don't have to do much to avoid gaining weight in college. A walk around campus each day will probably do it.

Eat healthy. It's possible to eat well on a small budget if you know what you're doing.

Limit vices. Beer, cigarettes, and pot are expensive. They also screw with your body and mind. Take it easy on the vices. There's nothing wrong with a drink or two on Friday night, but don't go overboard.

Learn the art of the Cheap Date. The student's guide to cheap dates suggests:

Have fun. Your college years will be some of the best of your life. It's trite, but true.

Decision Making

Get in the habit of making smart choices now, and you'll develop a pattern of behavior that will stand you in good stead the rest of your life.

Make smart choices. You can do anything you want, but you can't do everything you want. Decide what's important to you, and pursue that. And remember to leave time for yourself.

When you want to buy something, ask yourself "Do I need it?" If you think you do, then wait. Don't buy on impulse. Write the object of your desire on a piece of paper and pin it to the wall. Look at it every day for a week. If, at the end of the week, you still think you need it, then consider purchasing it.

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Making Money

I've saved the best for last. If you can master even one of these, you'll have a head-start on your friends. Master all four, and you'll be on the road to wealth. No kidding.

Spend less than you earn. Don't earn much? Then don't spend much. If your spending and income are roughly even, you have two choices: earn more or spend less. When I was in college, I worked as many as four jobs at once. This gave me a lot of spending cash. (Unfortunately, I didn't do a good job with the spend less part of the equation.)

Be an outstanding employee. Good work habits can pay enormous dividends, leading to recommendations and contacts that you can use after you're out of school. Several of my classmates turned work-study jobs into launching pads for future careers.

Start your own business. Can you install a hard drive? Can you strip a computer of spyware? Can you perform minor car repairs? Do you have a pickup truck you could use to haul furniture? Are you a passable guitar player? Charge cheap rates and exceed expectations. Word will spread. When you've built up a customer base, you can raise your rates a little. This is an awesome way to make money.

Learn to invest. Find a discount broker and begin making regular investments. Sharebuilder is a great choice for college students. It costs only $4 to make a scheduled stock purchase, and you can invest any amount of money, even $20.

Don't obsess over the details yet. You can worry about high returns and low fees later. Right now the most important thing is to develop the investment habit. (Ad: Buy Stocks for $4 at ShareBuilder.) Ten years from now, you'll thank yourself. If you can find a way to invest $1000 a year for the next ten years, you can set yourself up for life. No joke.

7 Ways To Have More Money

I know of a couple, with a combined take home pay of almost 8,000 a month. But this couple barely have any savings at the end of each month! And I wondered how can that be? Asking them further, I found that their expenses on some items are much higher and I thought that if they can cut back or made better decisions,
they would not be in the mess they are in not.

Here are some common expenses that I think would drain our income if we are not careful and I've listed them here.

1. Transportation. Yes we need transportation to get about, but a car might not be the best way to do it. Cars cost a lot to buy and to maintain. They also depreciate like there is no tomorrow.

To check if your cars are costing you too much hard earned cash, total up your car expenses in a month and compared to other expenses. Find out the percentage of car expenses versus other expenses. If it is way to high, then it is time to cut back.

Tip - If you can, delay buying a car as much as possible. If you really need a car, try to just have one for the family. Avoid have several of them as much as possible. If you really must own a car, see the next point.

2. Buy a used car. If you really need a car consider a used car. A 1 or 2 year old model would have depreciated some 30% or more off the new car prices. Down payment, installment payment, and insurance premiums will also be much lower. Choose wisely for model that is cheap to run.

3. Think Before You Subscribe. Nowadays, there are many promotions for various memberships and services. They tempt people to join with zero or low entry cost to join. For example gym or health club memberships. Many sign up for yearly subscription and don't bother to use the membership after several months. Instead, sign up for a short a period to try and see if you would really use the facilities before signing up for a longer period.

4. Reduce mobile phone charges. Unless your company pays for the bills, mobile phone expenses can quickly escalate. I've seen office based people who do not do any sales or marketing, that requires them to call using their handphones, have mobile phone bills higher than my friends who are in sales!! If you cannot control your phone calls, try a prepaid service rather than a post-paid service because everytime you take out money to reload, you'll feel the pinch.

Today, mobile phone companies come up with various ways to get you to spend more with musical ring tones, news downloads and sports update. These fancy services increases your mobile phone bills too.

5. Shop online. You can get most things from online and get a good bargain. Many online shops keep cost low by having low rental and advertising cost, but check the mailing charges.

6. Do your shopping off season. In many instances, when you are buying things at the end of season or clearance sale, you can get very good discounts.

7. Turn your hobby into a business. Almost everyone have a hobby or specialized knowledge of a topic. Be creative and turn it into an income source. If you are good with a computer or software, start a related part time business. You can help to repair, trouble shoot and maintain computers.