Heading off to college for the first time is quite the learning experience for most young adults. While there are a lot of things to get used to and figure out living on your own for the first time, one of the biggest adjustments to make is over money. What are some of the best ways entering college freshmen can better handle their financial situation?
Steve Siebold is author of the book How Money Works and a certified financial educator (CFEd) who has interviewed more than 1,300 of the world’s wealthiest people over the last 35 years. His advice is just what every college student needs to feel equipped for financial planning through college and beyond.
Here are 7 Tips to Help New College Students with Money
1. Get a part-time job
Wait until after your first semester once you are comfortable in your new school, surroundings and lifestyle. Getting a part-time job will not only give you some extra cash but it will give you a sense of independence from relying on mom and dad or anyone else. It also instills responsibility.
2. Become self-educated
Read books about success, money, business, investing, and anything else that can give you an edge in the real world. Higher education is indeed a commendable choice, but formal education will only make you a living. Self-education will make you rich.
3. Do what you love
The fastest way to get rich is by doing something you love to do. When you do something you love and you’re good at, you will do financially well. While most people in the middle class say the rich are always working, the wealthy are actually having so much fun because they love what they do.
4. Become a failure
Most of today’s millionaires and billionaires lost large sums of money at one time. In fact, many of them lost a lot of money over and over again. Failure is often a prerequisite to massive success. Don’t look at failure as a bad thing. See it as a learning experience to make you more successful.
5. Don’t listen to limiting beliefs
Whether it’s other students, faculty members, athletic coaches or anyone else, whether well-intended or not, don’t listen to people who tell you that you can only make so much money doing whatever it is you want to do. By using creative thought and solving problems that people need solutions for, and by creating so much value in the marketplace, you can earn as much money as you desire.
6. Live small but dream big
College is the perfect time to value frugality while drawing inspiration from your wildest dreams. While you must live below your means for a time, use logic to dictate your thinking and emotion to motivate you.
7. Know that you are now responsible
Hopefully your parents taught you fiscal responsibility. In the past, you probably knew they were always there to help you out. But now you’re most likely on your own when it comes to money. So remember, it’s up to you to make smart choices about your money.