Building wealth begins with a plan. As a college student, a financial strategy is probably far from your minds, but can be the key to monetary success. You make money, now learn how to let it grow. Developing a financial strategy begins with having your goals in mind. Maybe you want to have your student loans paid off by a certain time, or you want to buy a car within the year. Whatever it is, begin with creating a financial plan. Here are a few tips to get you started:
1. What are your goals? Start by setting your financial goals. For example, I want to be able to pay my bills and still have enough spare cash to live comfortably. Determine your long and short term goals and begin there. This can include the percentage of your income you want to spend, the percentage you want to save, or the percentage you'd like to invest.
2. Be realistic. Set goals that you are able to reach. Don't set yourself to save 30% of your income if you're not willing to and be conservative in your projections of expected income and earnings. Set a time frame that you'd like to achieve your goals. Remember, slow and steady wins the race.
4. Do your research. Read on other financial strategists such as Warren Buffet and Bill Gates. These billionaires not only earn a lot of money, they know what to do with it. Check out books such as "Rich Dad, Poor Dad" and Suze Orman's strategies to help you better understand. This is great practice.
5. One step at a time. The best advice is to take it day by day. Stick with your goals and execute your plan. It will take time so don't rush into anything. The beginning is always the hardest, but will be the stepping stone to wealth.
6. Keep track. Record your progress and adapt to the changes of the economy. Your financial strategy should match up with your needs and always prepare for an emergency. Don't put all your eggs in one basket!
Everyone should consider a financial strategy especially if you earn any type of income. It's not how much money you make, but what you do with it. You can be wealthy by taking the necessary steps and gaining the knowledge to do so. Since we don't have the luxury of hiring a financial planner, use the resources on campus. Speak with professors, network with business owners on campus, and read! Don't wait, get started TODAY!
Dopefully,
Shanika
