by Duncan Greenberg
Friday, October 9, 2009provided by
Want to become a tech titan or hedge fund tycoon? Up your chances by dropping out of college or going to Harvard and working at Goldman Sachs.Are billionaires born or made? What are the common attributes among the uber-wealthy? Are there any true secrets of the self-made?
We get these questions a lot, and decided it was time to go beyond the broad answers of smarts, ambition and luck by sorting through our database of wealthy individuals in search of bona fide trends. We analyzed everything from entrepreneurs' parents' professions to where they went to school, their track records in the early stages of their careers and other experiences that may have set them on the path to extreme wealth.Our admittedly unscientific study of the self-made members of the Forbes 400 yielded some interesting results.
First, a significant percentage of them had parents with a high aptitude for math. The ability to crunch numbers is crucial to becoming a billionaire, and mathematical prowess is hereditary. Some of the most common professions among the parents of Forbes 400 members (for whom we could find the information) were engineer, accountant and small-business owner.
Consistent with the rest of the population, more American billionaires and near-billionaires were born in the fall than in any other season. However, relatively few of them were born in December, historically the month with the eighth-highest birth rate.
Of the 274 self-made tycoons on the Forbes 400, 14% either never started or never completed college. The number of precocious college dropouts is highest among those who forged careers as technology entrepreneurs: Bill Gates of Microsoft (MSFT), Steve Jobs of Apple (AAPL), Michael Dell of Dell (DELL), Larry Ellison of Oracle (ORCL) and Mark Zuckerberg of Facebook.
Forbes 400 members who derive their fortunes from finance make up one of the most highly educated sub-groups: half of them have graduate degrees. Roughly 70% of those with M.B.A.s obtained their master's degrees from one of three Ivy League schools: Harvard, Columbia or the University of Pennsylvania's Wharton School of Business.
Goldman Sachs (GS) has attracted a large share of hungry minds that went on to garner 10-figure fortunes. At least 11 current and recent billionaire financiers worked at Goldman or one of it subsidiaries early in their careers, including Edward Lampert, David Tepper, Daniel Och and Leon Cooperman.
Several Forbes 400 members suffered bitter professional setbacks early in their careers that heightened their fear of failure. Pharmaceutical tycoon R.J. Kirk's first venture was a flop--an experience he regrets but appreciates. "Failure early on is a necessary condition for success, though not a sufficient one," he told Forbes in 2007.
According to a statement read by Phil Falcone during a congressional hearing in November 2008, his botched buyout of a company in Newark, N.J., in the early 1990s taught him "several valuable lessons that have had a profound impact upon my success as a hedge fund manager."
Several current and former billionaires rounded out their Yale careers as members of Skull and Bones, the secret society portrayed with enigmatic relish by Hollywood in movies like The Skulls and W. Among those who were inducted: investor Edward Lampert, Blackstone co-founder Stephen Schwarzman, and FedEx (FDX) founder Frederick Smith.
Are billionaires born or made? What are the common attributes among the uber-wealthy? Are there any true secrets of the self-made?
We get these questions a lot, and decided it was time to go beyond the broad answers of smarts, ambition and luck by sorting through our database of wealthy individuals in search of bona fide trends. We analyzed everything from entrepreneurs' parents' professions to where they went to school, their track records in the early stages of their careers and other experiences that may have set them on the path to extreme wealth.
Our admittedly unscientific study of the self-made members of the Forbes 400 yielded some interesting results.
In Pictures: A Recipe For Riches
First, a significant percentage of them had parents with a high aptitude for math. The ability to crunch numbers is crucial to becoming a billionaire, and mathematical prowess is hereditary. Some of the most common professions among the parents of Forbes 400 members (for whom we could find the information) were engineer, accountant and small-business owner.
Consistent with the rest of the population, more American billionaires and near-billionaires were born in the fall than in any other season. However, relatively few of them were born in December, historically the month with the eighth-highest birth rate.
Of the 274 self-made tycoons on the Forbes 400, 14% either never started or never completed college. The number of precocious college dropouts is highest among those who forged careers as technology entrepreneurs: Bill Gates of Microsoft, Steve Jobs of Apple, Michael Dell of Dell, Larry Ellison of Oracle and Mark Zuckerberg of Facebook.
Forbes 400 members who derive their fortunes from finance make up one of the most highly educated sub-groups: half of them have graduate degrees. Roughly 70% of those with M.B.A.s obtained their master's degrees from one of three Ivy League schools: Harvard, Columbia or the University of Pennsylvania's Wharton School of Business.
Goldman Sachs has attracted a large share of hungry minds that went on to garner 10-figure fortunes. At least 11 current and recent billionaire financiers worked at Goldman or one of it subsidiaries early in their careers, including Edward Lampert, David Tepper, Daniel Och and Leon Cooperman.
Several Forbes 400 members suffered bitter professional setbacks early in their careers that heightened their fear of failure. Pharmaceutical tycoon R.J. Kirk's first venture was a flop--an experience he regrets but appreciates. "Failure early on is a necessary condition for success, though not a sufficient one," he told Forbes in 2007. (See "Flying Solo.")
According to a statement read by Phil Falcone during a congressional hearing in November 2008, his botched buyout of a company in Newark, N.J., in the early 1990s taught him "several valuable lessons that have had a profound impact upon my success as a hedge fund manager."
Several current and former billionaires rounded out their Yale careers as members of Skull and Bones, the secret society portrayed with enigmatic relish by Hollywood in movies like The Skulls and W. Among those who were inducted: investor Edward Lampert, Blackstone co-founder Stephen Schwarzman, and FedEx founder Frederick Smith.
In Pictures: A Recipe For Riches
Saturday, March 20, 2010
Ways to Save While in School
Saving money while in college may be a difficult thing to do. You should set a goal to cover your tuition payments at the very least. If you work summers only you should make it a goal to cover your living expenses as well. If you can only save enough to cover one area, then choose the most expensive one, and only borrow enough to cover the amount that you have planned in your budget.
1. How Much Should I Save While in College?
You should set specific savings goals for yourself while in college and working. You should calculate the amount you need to save each month to reach your goal (tuition costs or living expenses). You simply divide the amount you need by the number of months that you have to save it. Then you make sure you transfer that amount into your savings account, and live on what the remainder. You may consider moving home over the summers to save on costs. Even if you can not save the entire amount you need, you will still benefit from saving as much as possible. You can set up an automatic draft to come out the day after each paycheck. This is great if you have direct deposit, because you never see the money, and you will not miss it.
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1. How Much Should I Save While in College?
You should set specific savings goals for yourself while in college and working. You should calculate the amount you need to save each month to reach your goal (tuition costs or living expenses). You simply divide the amount you need by the number of months that you have to save it. Then you make sure you transfer that amount into your savings account, and live on what the remainder. You may consider moving home over the summers to save on costs. Even if you can not save the entire amount you need, you will still benefit from saving as much as possible. You can set up an automatic draft to come out the day after each paycheck. This is great if you have direct deposit, because you never see the money, and you will not miss it.
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Everyday Money Saving Tips for Single Parents
Simple Ways to Trim Your Budget and Keep More of What You Earn
When money is tight, you might be tempted to look for "big" ways to start saving more money each month. However, quite often, you'll find that saving money in "little" ways every day begins to add up to considerable savings. Put these money saving tips into practice, and make a point of putting the money you save into the bank.
Money Saving Tip #1: Use Coupons Effectively
If you're going to bother to clip coupons, make sure you use them in a way that saves you the most money possible. For example, find out whether your local grocery store offers to double coupon values on a certain day. If they do, make that day of the week your regular shopping day. Also, refer to the store's weekly flyer to find out what's on sale. If you have coupons for items, such as cereal, that regularly go on sale, wait until the sale to use the coupon. Over time, this strategy will help you save a lot of money.
When money is tight, you might be tempted to look for "big" ways to start saving more money each month. However, quite often, you'll find that saving money in "little" ways every day begins to add up to considerable savings. Put these money saving tips into practice, and make a point of putting the money you save into the bank.
Money Saving Tip #1: Use Coupons Effectively
If you're going to bother to clip coupons, make sure you use them in a way that saves you the most money possible. For example, find out whether your local grocery store offers to double coupon values on a certain day. If they do, make that day of the week your regular shopping day. Also, refer to the store's weekly flyer to find out what's on sale. If you have coupons for items, such as cereal, that regularly go on sale, wait until the sale to use the coupon. Over time, this strategy will help you save a lot of money.
Save Money on Meds_Pill Splitting May Save You As Much as 56%
Always consult with your physician before making changes to how your medication is administered. This method may not be appropriate for all medications and could be dangerous if used with the wrong medication.
High medication costs getting you down? Pill splitting may be just the answer you are looking for. According to Dr. Carl I. Cohen, professor of psychiatry at the State University of New York Health Science Center at Brooklyn, this method may save consumers an average of 37% off their prescription costs. With some medications this savings may be as much as 56%.
To see if this method is right for you, you will first need to do your homework. Begin by consulting the list provided or ask your doctor or pharmacist if your medication is available in a dose double your normal dosage (for example, if you normally take a 20 mg dose, is a 40 mg pill available). If it is, ask whether there would be any problems with splitting the tablets or capsules (read further for specific methods to be used). Certain medications require a finely tuned dosage or their pharmacology may be altered if their protective coating is damaged. Zyprexa (olanzapine) is one such medication. It must be used within seven days after being split. Another example is the pain medication Oxycontin. This medication is a time release formulation. Splitting the pill would cause you to receive several hours worth of medication all at once and could be dangerous. Finally, do a cost comparison between the two dosages. If the higher dose is anything less than double the cost for your regular dose then you will be saving money by having your doctor prescribe the higher dose and then splitting it.
To split tablets you will need a pill splitter. Most pharmacies should stock these. You can also purchase them online at many locations. If your medication is in capsule form, you may be able to split it as well by emptying the contents of one capsule into a glass of juice. By drinking half and saving half for the following day you are effectively cutting the dose in half. Remember to refrigerate the mixture.
According to Dr. Cohen this method is appropriate for many psychotropic medications because small differences in dosage do not affect their effectiveness. Please check with your doctor or pharmacist for specifics about your own medication.
This method is not appropriate in cases where patients have no social support, poor eyesight, diminished cognition, disorganized thinking, or impaired dexterity.
Reference:
Clinical Psychiatry News 27(9):10, 1999.
Pills That Can Be Easily Split
Ambien 5 mg
Aricept 5 mg
Buspar 5 mg
Effexor 25 mg, 37.5 mg, 50 mg
Luvox 25 mg, 50 mg
Paxil 10 mg, 20 mg
Remeron 15 mg
Risperidal 1 mg, 2 mg
Seroquel 100 mg
Serzone 50 mg, 100 mg
Zoloft 25 mg, 50 mg
Zyprexa 2.5 mg, 5 mg
High medication costs getting you down? Pill splitting may be just the answer you are looking for. According to Dr. Carl I. Cohen, professor of psychiatry at the State University of New York Health Science Center at Brooklyn, this method may save consumers an average of 37% off their prescription costs. With some medications this savings may be as much as 56%.
To see if this method is right for you, you will first need to do your homework. Begin by consulting the list provided or ask your doctor or pharmacist if your medication is available in a dose double your normal dosage (for example, if you normally take a 20 mg dose, is a 40 mg pill available). If it is, ask whether there would be any problems with splitting the tablets or capsules (read further for specific methods to be used). Certain medications require a finely tuned dosage or their pharmacology may be altered if their protective coating is damaged. Zyprexa (olanzapine) is one such medication. It must be used within seven days after being split. Another example is the pain medication Oxycontin. This medication is a time release formulation. Splitting the pill would cause you to receive several hours worth of medication all at once and could be dangerous. Finally, do a cost comparison between the two dosages. If the higher dose is anything less than double the cost for your regular dose then you will be saving money by having your doctor prescribe the higher dose and then splitting it.
To split tablets you will need a pill splitter. Most pharmacies should stock these. You can also purchase them online at many locations. If your medication is in capsule form, you may be able to split it as well by emptying the contents of one capsule into a glass of juice. By drinking half and saving half for the following day you are effectively cutting the dose in half. Remember to refrigerate the mixture.
According to Dr. Cohen this method is appropriate for many psychotropic medications because small differences in dosage do not affect their effectiveness. Please check with your doctor or pharmacist for specifics about your own medication.
This method is not appropriate in cases where patients have no social support, poor eyesight, diminished cognition, disorganized thinking, or impaired dexterity.
Reference:
Clinical Psychiatry News 27(9):10, 1999.
Pills That Can Be Easily Split
Ambien 5 mg
Aricept 5 mg
Buspar 5 mg
Effexor 25 mg, 37.5 mg, 50 mg
Luvox 25 mg, 50 mg
Paxil 10 mg, 20 mg
Remeron 15 mg
Risperidal 1 mg, 2 mg
Seroquel 100 mg
Serzone 50 mg, 100 mg
Zoloft 25 mg, 50 mg
Zyprexa 2.5 mg, 5 mg
Making Smart Money Choices for Less Stress and More Happiness
It’s a common misconception that making more money will bring more happiness and less stress, but research doesn’t show this to be the case. While more money brings a momentary thrill and a few new things, people generally adjust their lifestyles in ways that don’t increase their overall happiness level or decrease stress. A better goal would be to be smarter with the money you have: buy fewer things that you don’t need, get out of debt (if you’re in it), and spend your money on things that will truly make you happy and decrease your stress level, including your future. This creates more of a feeling of abundance and personal freedom than having more money but spending it all on more expensive toys. The following are concrete ways you may be able to repurpose your finances in ways that will increase happiness and decrease stress.
Cut Down On Your Debt
If you’re in debt and it causes you stress, look for things you can cut out of your budget (like the morning lattes, dinners out, new clothes that you don’t need) and put it toward paying off credit card debt. You’ll eventually have something that you value more than these extras: a chance at financial freedom and peace of mind.
Be Smart With Spending
From now on, before you buy new things, really think about whether they will really improve your quality of life, of if they’ll just cause you stress (from having less money) and eventually add clutter to your home. Spending less can reduce stress.
Use Your Money To Do What You Want
After cutting the extras out of your budget, if you don’t have great amounts of debt to pay off, you can think about hiring people to do things for you that you hate doing, that take time away from activities you’d really like to be doing. For example, you could have someone come and clean your house while you instead take your kids to the park; you could hire an assistant at work to offset your workload so that you can have more time for yourself; hiring someone to help de-clutter your house can free up the time it would take you to do so, and you’ll have more of a haven to come home to.
Trade Old Stuff For New Experiences
You may consider having a garage sale or selling items on eBay if you have too much ‘stuff’, and spending the money on taking classes, going on a vacation with your family, or doing something else that would create positive memories, enrich your life, and help you combat burnout.[
For more on relieving money stress, visit The Financial Stress Section.
More Strategies for Happiness and Life Satisfaction:
The Benefits of OptimismQuiz: Are You An Optimist?Surrounding Yourself with Positive Energy
Stress Management Quizzes
Quiz: Overscheduled and Overstressed?Quiz: Is Your Level of Stress Unhealthy?Quiz: How Healthy Is Your Lifestyle?
Additional Resources
Cortisol and StressGet The Latest Delivered To You!Free E-Course: Live a Low Stress Lifestyle
Related Articles
* Financial Stress - Managing Your Money AND Your Stress
* Money Stress and Happiness - How Money Stress and Happiness Are Related
* Divorce Budget - Budgeting Money After a Divorce
* Conflict Free Divorce – How To Have A Conflict Free Divorce
* Top 3 Ways to Make Your Money Work for
Cut Down On Your Debt
If you’re in debt and it causes you stress, look for things you can cut out of your budget (like the morning lattes, dinners out, new clothes that you don’t need) and put it toward paying off credit card debt. You’ll eventually have something that you value more than these extras: a chance at financial freedom and peace of mind.
Be Smart With Spending
From now on, before you buy new things, really think about whether they will really improve your quality of life, of if they’ll just cause you stress (from having less money) and eventually add clutter to your home. Spending less can reduce stress.
Use Your Money To Do What You Want
After cutting the extras out of your budget, if you don’t have great amounts of debt to pay off, you can think about hiring people to do things for you that you hate doing, that take time away from activities you’d really like to be doing. For example, you could have someone come and clean your house while you instead take your kids to the park; you could hire an assistant at work to offset your workload so that you can have more time for yourself; hiring someone to help de-clutter your house can free up the time it would take you to do so, and you’ll have more of a haven to come home to.
Trade Old Stuff For New Experiences
You may consider having a garage sale or selling items on eBay if you have too much ‘stuff’, and spending the money on taking classes, going on a vacation with your family, or doing something else that would create positive memories, enrich your life, and help you combat burnout.[
For more on relieving money stress, visit The Financial Stress Section.
More Strategies for Happiness and Life Satisfaction:
The Benefits of OptimismQuiz: Are You An Optimist?Surrounding Yourself with Positive Energy
Stress Management Quizzes
Quiz: Overscheduled and Overstressed?Quiz: Is Your Level of Stress Unhealthy?Quiz: How Healthy Is Your Lifestyle?
Additional Resources
Cortisol and StressGet The Latest Delivered To You!Free E-Course: Live a Low Stress Lifestyle
Related Articles
* Financial Stress - Managing Your Money AND Your Stress
* Money Stress and Happiness - How Money Stress and Happiness Are Related
* Divorce Budget - Budgeting Money After a Divorce
* Conflict Free Divorce – How To Have A Conflict Free Divorce
* Top 3 Ways to Make Your Money Work for
Cut Your Grocery Bill
By following the 10 tips below, alert shoppers can save up to $300 a month off their grocery bills. Are you ready to start trimming the fat off your food bills?
A Little Homework
Planning before you head off to the supermarket will help you shop more economically. Take the time to do a quick inventory of your kitchen to determine the food that you need. Prepare your shopping list and make notations of applicable coupons that you may want to use. Read the newspapers and circulars to find the best deals.
Choosing the Right Store
For basic grocery needs many grocery stores now offer excellent product and price selection, frequent shoppers programs and double coupon days. However, when buying in bulk you may want to tackle the warehouse clubs or superstores. Non-perishable items are often at unbeatable prices at such stores. For the best prices on health and beauty products check the national drugstore chains and superstores.
Eat First
Grocery stores know the power of the sweet smell of freshly baked bread. Just one sniff will ignite the appetite and send even the most hardened shopper down the aisle grabbing for anything that looks good. Remember, everything looks good when our stomachs are screaming, "feed me!"
Coupons, Rebates, and Frequent Shopper Programs
You can save hundreds of dollars a year by taking advantage of product incentives. Even the less enthusiastic coupon clipper can shave an average of 10 percent off their bottom-line by cashing in a small handful of coupons per trip.
If your store offers a frequent shopper program, why not sign-up? You will receive advanced notice of special loss leaders, double-coupon days and other money saving information.
Store Brands - Try it, You May Like It
The days of generic type packaging and bland tasting food in store brand products is over. Companies have worked hard to improve their private-label brands and often the taste is equal to the national brands. Do not be afraid to experiment. If you find the product meets your standards, you can save an average of 40 percent off your annual grocery bill.
Setting Limits on Impulse Buying
Avoiding spontaneous shopping trips is one of the best deterrents to impulse buying. Sticking to a well thought-out shopping list will help will help cut down on grabbing for things that you do not need. In addition, giving yourself enough time to shop will help prevent dashing in and reaching for the first item that you come to. Setting a dollar limit for impulse buying will help soothe cravings without busting the budget.
Comparison Shopping
To determine the true value of a product read the unit price, not just the package price. The unit price information is usually on a sticker located on the shelf that holds the item. The package price only tells you the cost of the entire item. The unit price shows the cost per pound, ounce, etc. Taking a moment to compare this information in similar products will help you get the best value for your dollar. Also, be certain to check "expiration" and "use by" dates to insure you are buying the freshest products.
Beware of Marketing Strategies
Avoid marketing ploys designed to draw your attention to a particular product. Knowing some of the tricks of the trade will ultimately save you money. Beware of end-of-the-aisle dump bins, island displays, recipe related item placement and middle-shelf items. This is typically where higher priced and impulse products are placed.
Learn to Be a Label Reader
Reading the product label is the best way to find out more than what is advertised on the box. Ingredients are listed in order by the quantity actually used when making the product. The ingredients used in the highest quantity are listed first. For example, if you are looking for avocado dip you will want to see avocadoes listed in the first part of the ingredient list, not the last part.
If you are looking to cut fat from your diet, be careful of words such as "lite" or "fat-free" which can have broad definitions. By reading the label you can get a better idea of what the fat-to-calorie ratio is as well as other valuable nutritional information.
Watch the Scanner
It may mean you need to put down the magazine, because this is no place to get lax. Keeping your eyes peeled to the scanner has dual advantages. First, it will keep the cashier more alert. Secondly, it will allow you to stop the checkout process if an item is showing the incorrect price. Keeping the store circular nearby is also helpful in disputing an incorrect price. You can also ask the cashier to stop ringing while you accompany the employee to the aisle to check the price of an item.
A Little Homework
Planning before you head off to the supermarket will help you shop more economically. Take the time to do a quick inventory of your kitchen to determine the food that you need. Prepare your shopping list and make notations of applicable coupons that you may want to use. Read the newspapers and circulars to find the best deals.
Choosing the Right Store
For basic grocery needs many grocery stores now offer excellent product and price selection, frequent shoppers programs and double coupon days. However, when buying in bulk you may want to tackle the warehouse clubs or superstores. Non-perishable items are often at unbeatable prices at such stores. For the best prices on health and beauty products check the national drugstore chains and superstores.
Eat First
Grocery stores know the power of the sweet smell of freshly baked bread. Just one sniff will ignite the appetite and send even the most hardened shopper down the aisle grabbing for anything that looks good. Remember, everything looks good when our stomachs are screaming, "feed me!"
Coupons, Rebates, and Frequent Shopper Programs
You can save hundreds of dollars a year by taking advantage of product incentives. Even the less enthusiastic coupon clipper can shave an average of 10 percent off their bottom-line by cashing in a small handful of coupons per trip.
If your store offers a frequent shopper program, why not sign-up? You will receive advanced notice of special loss leaders, double-coupon days and other money saving information.
Store Brands - Try it, You May Like It
The days of generic type packaging and bland tasting food in store brand products is over. Companies have worked hard to improve their private-label brands and often the taste is equal to the national brands. Do not be afraid to experiment. If you find the product meets your standards, you can save an average of 40 percent off your annual grocery bill.
Setting Limits on Impulse Buying
Avoiding spontaneous shopping trips is one of the best deterrents to impulse buying. Sticking to a well thought-out shopping list will help will help cut down on grabbing for things that you do not need. In addition, giving yourself enough time to shop will help prevent dashing in and reaching for the first item that you come to. Setting a dollar limit for impulse buying will help soothe cravings without busting the budget.
Comparison Shopping
To determine the true value of a product read the unit price, not just the package price. The unit price information is usually on a sticker located on the shelf that holds the item. The package price only tells you the cost of the entire item. The unit price shows the cost per pound, ounce, etc. Taking a moment to compare this information in similar products will help you get the best value for your dollar. Also, be certain to check "expiration" and "use by" dates to insure you are buying the freshest products.
Beware of Marketing Strategies
Avoid marketing ploys designed to draw your attention to a particular product. Knowing some of the tricks of the trade will ultimately save you money. Beware of end-of-the-aisle dump bins, island displays, recipe related item placement and middle-shelf items. This is typically where higher priced and impulse products are placed.
Learn to Be a Label Reader
Reading the product label is the best way to find out more than what is advertised on the box. Ingredients are listed in order by the quantity actually used when making the product. The ingredients used in the highest quantity are listed first. For example, if you are looking for avocado dip you will want to see avocadoes listed in the first part of the ingredient list, not the last part.
If you are looking to cut fat from your diet, be careful of words such as "lite" or "fat-free" which can have broad definitions. By reading the label you can get a better idea of what the fat-to-calorie ratio is as well as other valuable nutritional information.
Watch the Scanner
It may mean you need to put down the magazine, because this is no place to get lax. Keeping your eyes peeled to the scanner has dual advantages. First, it will keep the cashier more alert. Secondly, it will allow you to stop the checkout process if an item is showing the incorrect price. Keeping the store circular nearby is also helpful in disputing an incorrect price. You can also ask the cashier to stop ringing while you accompany the employee to the aisle to check the price of an item.
Top Money Saving Tips for College Freshmen
Making the transition from high school student to college student can be confusing. There are a lot of changes and many new responsibilities. Adapting to college is full of life lessons and the biggest lesson involves handling money.
Living at Home Is Easy
When teens live at home there are many financial decisions that they never have to make. Parents worry about how much to spend on housing, food, bills, clothes and entertainment. These things never have to cross the high school students mind.
In college teens suddenly have to handle these things on their own. If you spend money recklessly you will quickly find yourself tapped.
Smart money saving tactics can make a major impact on your finances and your future. Here are some tips and ideas to make your financial transition that much easier.
Know Your Cost of Living
Make a list of your mandatory monthly expenses so you understand where your money has to go. Things like, rent, utilities, transportation, groceries, parking, school supplies, debt repayment, and student or activity fees fall in this category. Once you know where your money has to go each month you'll be able to set up a discretionary fund and a savings plan.
Give Yourself an Allowance
Put yourself on an allowance for things like entertainment, eating out, clothing, and special purchases. Stay on budget no matter how tight things get. It's never too early to start saving money. Even if it's only $20 a week try to put something aside in a savings account.
Organize Your Receipts
Keep your bills, bank statements and receipts all in one place. Organize them by month and by category, for example; rent, bills, and expenses. Keep them in a safe place. Make sure to go over your bank statements carefully and keep all ATM receipts. Have your bank return cashed checks to you or at least ensure that you can see copies of all cashed checks online.
Become Frugal
Look for creative ways to save money. Consider carpooling, public transit or enviro-friendly biking as a means of getting around. Bring lunches and snacks from home. Buy your text books and lab supplies second hand if possible. Instead of paying a tutor set up a peer study group in classes that you need extra help with.
Understand Your Debt Load
Student loans aside there are other ways that students get in to debt. Credit card companies target cash strapped students, most of whom are inexperienced with unsecured debt.
When handled responsibly credit cards can be good things to have. If you do any shopping on the Internet you will probably need to have a credit card. Many credit card companies offer theft and fraud protection. Read the fine print of your credit card agreement to find out if you’re covered for these things.
It's a good idea to have a credit card for emergencies or for major purchases like books or a bike but avoid using plastic for day-to-day spending or for entertainment.
Watch Out for Identity Theft
You are never too young to fall victim to identity theft. In fact, young people with little or no credit history are good targets. Keep your personal information well guarded.
Limit the information you post in your profiles on the Internet to first name and last initial, gender and general area of residence. Social networking sites have become havens for people looking to steal identities.
Never leave ATM or debit receipts behind, always take them with you. Keep your credit card numbers private and only use them on web sites you know you can trust. Always shield your personal identity number (PIN) from prying eyes.
Follow these guidelines and you'll be in good financial shape now and in the future.
Living at Home Is Easy
When teens live at home there are many financial decisions that they never have to make. Parents worry about how much to spend on housing, food, bills, clothes and entertainment. These things never have to cross the high school students mind.
In college teens suddenly have to handle these things on their own. If you spend money recklessly you will quickly find yourself tapped.
Smart money saving tactics can make a major impact on your finances and your future. Here are some tips and ideas to make your financial transition that much easier.
Know Your Cost of Living
Make a list of your mandatory monthly expenses so you understand where your money has to go. Things like, rent, utilities, transportation, groceries, parking, school supplies, debt repayment, and student or activity fees fall in this category. Once you know where your money has to go each month you'll be able to set up a discretionary fund and a savings plan.
Give Yourself an Allowance
Put yourself on an allowance for things like entertainment, eating out, clothing, and special purchases. Stay on budget no matter how tight things get. It's never too early to start saving money. Even if it's only $20 a week try to put something aside in a savings account.
Organize Your Receipts
Keep your bills, bank statements and receipts all in one place. Organize them by month and by category, for example; rent, bills, and expenses. Keep them in a safe place. Make sure to go over your bank statements carefully and keep all ATM receipts. Have your bank return cashed checks to you or at least ensure that you can see copies of all cashed checks online.
Become Frugal
Look for creative ways to save money. Consider carpooling, public transit or enviro-friendly biking as a means of getting around. Bring lunches and snacks from home. Buy your text books and lab supplies second hand if possible. Instead of paying a tutor set up a peer study group in classes that you need extra help with.
Understand Your Debt Load
Student loans aside there are other ways that students get in to debt. Credit card companies target cash strapped students, most of whom are inexperienced with unsecured debt.
When handled responsibly credit cards can be good things to have. If you do any shopping on the Internet you will probably need to have a credit card. Many credit card companies offer theft and fraud protection. Read the fine print of your credit card agreement to find out if you’re covered for these things.
It's a good idea to have a credit card for emergencies or for major purchases like books or a bike but avoid using plastic for day-to-day spending or for entertainment.
Watch Out for Identity Theft
You are never too young to fall victim to identity theft. In fact, young people with little or no credit history are good targets. Keep your personal information well guarded.
Limit the information you post in your profiles on the Internet to first name and last initial, gender and general area of residence. Social networking sites have become havens for people looking to steal identities.
Never leave ATM or debit receipts behind, always take them with you. Keep your credit card numbers private and only use them on web sites you know you can trust. Always shield your personal identity number (PIN) from prying eyes.
Follow these guidelines and you'll be in good financial shape now and in the future.
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