Alex Winslow—Hey Everyone,
Recently I picked up a book called Financial Peace Revisited by a guy named Dave Ramsey. After almost getting through it, I have learned so much about money — things such as the snowball method of getting out of debt. With that, all you do is list out your expenses from smallest to largest.
Here is an example:
- Starbucks Coffee $4.00
- Domino’s Pizza $36.00
- Spring Break $500.00
- Car Loan $10,000.00
- School Loans 20,000.00
Now say you have charged that on a credit card. What you do is pay the smallest things off first but make minimum payments on the other things. Then you can cross each of the items off the list and become debt free.
Say it is March 1st and I need to figure out my expenses:
- Car Payment
- Entertainment (Movies, Wing Night, Bowling)
I had to figure out how to use my money better so I could do everything on the above list. When I first got my car loan, I simply paid off other bills to focus on being able to pay for my cell phone, my insurance, and my gas. One of the things I wanted to be able to do was keep a better record of what I was spending. I do not know about you, but when I first received my ATM/Check card I used it in many different places. Now I have a better view on when to use the card, but it is still a work in progress. My next goal is to keep a record of what I’m spending. Guess we call that balancing a checkbook. Hope to be able to let you know how that goes.
Also, I got to learn about some other principles of shopping. One of these is patience. Instead of just being an impulsive shopper and buying blindly on many items, it is best to wait and find the best deal. Secondarily I should prioritize paying in cash as much as possible. It was pretty easy for me to buy an Xbox One with my card. Looking back on it, I might have had second thoughts looking at the 400 dollar bills going towards it.
As a junior, I am simply attempting to get better control of how I spend my money. This book has certainly been very helpful to me so far.
Here is a link if you are interested in the book. It is a tool to be looked at and respected for what it can do. Hopefully this can reach out to many students so maybe I can help you save and make money.