Climbing the Steps to Financial Success

Implement your plan and control your spending so you can get through the semester or year. Refer to your plan and be committed to it. Calculate how much you have to spend each week by summing your income from all sources throughout the year and dividing by 52 weeks after paying for fixed expenses such as tuition, books and housing.

Reduce impulse spending. Use a technique or new patterns that controls impulsive spending that works for you. Resist pressure by friends to buy what you cannot afford -- for now anyway. Write a memo to yourself on where you're going to "keep up with friends," where "not to try to keep up with friends," and where to "do your own thing."

Some students find the use of money management software (i.e. Microsoft Money, Quicken, etc.) very useful in tracking expenses, but only because they faithfully record all of their transactions.

Have a simple system to remind and record (R & R's) such as your calendar or on the outside of the mailing envelope. Cancelled checks can be proof of payment. When paying a bill, write on your copy of the bill the date and check number that you keep.

Eliminate late fees. Note due dates on calendar with arrow leading backward indicating when to send in payment. This may be the only system you need! Be organized - keep financial notices, receipts, statements, etc. together. This is your home office or business center even if it is only a shoe box.

A management system that combines planning, controlling, record keeping, and evaluating is the Notebook System. Use an old, unused spiral notebook. Start a new page slot whenever you regularly get paid or regularly pay your bills. Place your bills in the page slot for when they are to be paid. As you write checks or pay bills, record amounts and total with other expenses to see if you can meet your expenses. Use the page slots for keeping receipts and records for paid bills with date, amount, and check number on the unsent portion of a bill. Have reminders by date of page slots to pay recurring items, charity, or other. Calculate on the page the problems with miscellaneous or some particular category you want to spotlight and analyze. Write goals at the beginning of the notebook in quantifiable terms. Keep semester or yearly items at the end of the notebook.

Pay your bills on time. Have a set time each two weeks to manage finances and then reward yourself for the task completed. Don't get hurt by not paying your bills. What will hurt?

Late fees and over-the-limit fees
Over-draft protection fees and automatic credit to cover checks with non-sufficient funds
Harassment, loss of goods, cut in service, court action
Real disaster and no credit available.
A great, unexpected opportunity and you have nowhere to get cash or credit at that time

Management
Section I / Section II / Section III
Section IV / Section V / Section VI

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