A {Realistic} Student is One That is Learning How to Become More Financially Independent
It isn’t always about studying, sometimes it’s about managing student life to the best of your ability. That includes struggling with financial independence, or “balling on a budget.”
Part Time Jobs - The Most Obvious Way to Keep the Cash Flowing
In choosing a good part-time job, I examined what jobs would be best for me as a full-time student. For most college students, working in restaurants or in retail is usually the best option, as they employ a lot of students (flexible to your class schedule/if you need to trade or get a shift covered there is another broke college student who is glad to take it). Personally, I chose working in a restaurant because servers (in America) are primarily paid in cash. We get virtually non-existent paychecks due to the fact that we make $2.13 an hour. This worked for me, as handing over a crisp $20 bill is so much harder than swiping a piece of plastic. Because of this, it became easier to save my money. I enjoyed the feeling of counting it out and seeing that I had saved a whole $800.Â
Additionally, you can look into getting a job on campus. Working at the library, wherever food is sold, or at the front desk of many of the departments/resident halls on campus is a great idea. Working on campus can have a plethora of benefits including:
Time to study (because this is still a studyblr community)
Working in retail or in a restaurant you will not be able to bring your materials to go over when you have downtime, but working on campus can definitely provide you with study time
Potentially reduced tuition
Potential experience in your field
This is applicable to both student apartments and resident halls
Zero commute (cut down on fuel)
Resident halls also have all sorts of work schedules, so if you’re a night owl/insomniac you can work at 1 AM because students get locked out of their rooms at all hours of the night!
Learn to use your credit card sparingly, even if the credit card is technically under your parent’s name. Credit cards are double-edged swords. One day you will probably have your very own credit card. This is good because you can start to build good credit, but it can also be bad because credit card debt is real. Do your best to keep current on your student loan payments, as well as credit card payments, rent, etc. so that you don’t have outstanding amounts of debt. Outstanding balances on credit card payments, or being evicted make it harder for yourself down the line when you want to buy a house, or even rent another apartment as they damage your credit.Â
Do diligence when applying for your very first credit card. What banking institutions work best for students or those post-graduation? Don’t just go with a bank because it’s the only one you know. Ask around and see which ones offer you the best rates. I know that many of us were taught that if you put your money in a bank it can gain interest by virtue of the way banks operate; however, putting your money into a bank is actually the worst way to make money. You will see your money compounding some sort of interest; unfortunately, the first time I noticed this I had approximately $100 in my savings account and it was less than a dollar. I actually think it was literally .1 cent.
Purchasing renter’s insurance might seem like an annoyance -especially if you are required to do so because of where you live- but it’s sort of a necessary evil. You can find plans that are cheap ($10 a month) to cover yourself. Imagine if a pipe were to burst in your dorm or apartment, ruining your computer. If you file a claim with your insurance company, you would probably have a new computer within a couple of days. You might never need it, and you seriously hope you don’t. But I would much rather pay $10 a month instead of purchasing a new computer out-of-pocket, and then dealing with the hassle of trying to get my apartment management to cover it.Â
The same goes for car insurance. If you are a young driver, or you are like me and you have had a few accidents/fender benders, you can still find cheap insurance. Ask around or simply google the best cheap insurance brands in your area. In the state I live in, driving without insurance is 100% illegal. On top of a wrecked car, you could also face a hefty ticket for not being able to provide proof of insurance.Â
Look into your school’s own medical services that your tuition already covers or can be billed to your tuition. If your university is like mine, it has a student wellness center of some sort on campus. They have licensed counselors, nurse practitioners, etc. that can give you the help you need for “free.” For walk-ins, you might need to be prepared to get comfy and sit awhile, or for appointments you might have to wait a week - but is this really that different from what you’ll find at a doctor’s office/urgent care/emergency room?
You may really want to attend graduate school somewhere fancy, but a comparable grad program may be available at a cheaper price located at a different university. Do I want to go to Cornell Law? Yes. Can I afford Cornell Law? No. Does the school I am getting my undergrad at have a really good criminal law program through its law school for way cheaper? Hell yes. Shop around, my friends. My grandfather always said: “a pedigree can tell you what the horse should be able to do, but not what the horse will be able to do.” Don’t get so caught up in “pedigree” (prestige) when you can get the same, great education elsewhere and not accrue wild amounts of debt. Â
The search for free money to attend school doesn’t end when you are accepted. There are many scholarships that your university may advertise - or you can find scholarships simply by googling “McDonalds + scholarship” or “Toyota + Scholarship” or even “Miller Lite + Scholarship.” There’s even scholarships for tall people, small people, people who play golf - just look around.Â
When writing essays for scholarships, save the essays you write. You can recycle them for other scholarships, and just tweak them to fit the prompt.Â
Even if the scholarships don’t open up for many months - go ahead and create a spreadsheet with this information.Â
Additionally, create a separate email address for scholarships - this will ensure emails regarding them do not get lost or clutter your inbox.Â
Keep track of when FAFSA opens up for your school, or you can meet with your school’s financial aid office to see what needs to be done. Remember that FAFSA is first come, first serve.
Just like in class, you can learn to become financially independent
If you are already financially independent from your parents/guardians and you are starving/struggling, I recommend listening to Mad Fientist’s podcasts relating to becoming financially independent. The “fi” in “fientist” means financial independence - cute. He interviews “personal finance icons” about how they cut down on their cost of living. (Note: These are recent college grads who managed to pay off any debt they have, as well as begin saving for retirement.) All of them mention “living below their means.” So, instead of paying for entertainment, they find free/cheap ways to entertain themselves like spending time outdoors. Instead of paying for cable, they will typically “cut cable” and use Netflix. They also learned how to invest their money correctly. I thought I would be bored out of my skull listening to these podcasts; however, they managed to become inspo. In the end, they all basically say the same things - so maybe just listen to a couple of the podcasts if finance is not your cup of tea.Â
You live in an apartment off campus. It’s probably cleaner, and quieter, and nicer - but it is still accompanied by the fact that you will have to get to campus some way. My sophomore year of college, I lived really close to campus and was able to walk - or ride the bus in cases of inclement weather. Now, I live a bit father out. I love taking the bus to school. I’ve saved a lot of money on gas, I don’t have to purchase a parking pass for campus, deal with notoriously unforgiving university parking services, and it gives me time to just be in my own head. Thankfully, many of the apartments around my school are designed for college students, so we can ride the bus for free to school directly from our apartment. Look into transportation services provided by your university or the surrounding area. Also, think about carpooling or purchasing a bike - cheaper and better for the environment.Â
Selling Plasma and Other Tales from The Broke Side
College students in America will also resort to selling plasma. I know this has a negative connotation; however, there are people out there that do need your plasma! You are potentially saving someone’s life and being paid to do it. Be weary - plasma donation locations typically pay you a set rate for your first visit, and then each additional visit you are paid by YOUR weight. The more you weigh, the more plasma they can take, so the more money you are paid. The way the place here works, you are given a card with the amount you received on it. My roommate usually takes this card and gets “cash back,” but I’ve also had people use them like credit cards at the restaurant I worked at. Not only is selling your plasma a good way to potentially save some lives while making a little cash, you can also use the time to catch up on Better Call Saul, or annotate that book for class. You’ll need to prepare to get comfy - they deal with scores of people daily, so there may be a line, and the process does take at least an hour. (Just a little insight to how it works: you sit hooked up to the machine, with a needle similar to one that would be used to draw blood/donate blood/get an IV. Your blood goes out and the plasma is separated in the machine. Once everything is separated, your plasma-less blood goes back in. It will feel cold because you are at a nice 98.7′ F, and the blood is now room temperature.) Additionally, because they don’t directly deposit your payment into your account, you can keep it relatively secret. This is good for those of you like me, who have been told by various family members that the thought of you selling your plasma grosses them out. But hey - if you can stomach needles, or you donate your blood all the time and it’s a non-issue, go for it. At least you can remind your folks it’s for a good cause.Â
You can also sell your old clothes, furniture, etc. on apps like Letgo or the Facebook Market! I recommend bringing a friend and/or meeting in a public place during the daytime to exchange money for item.Â
Learning how to coupon has been life-changing. By signing up for the rewards memberships at your grocery store/gas station/coffee shop/favorite pizza place, you can be rewarded with coupons or free items. I’ve found that my CVS and Walgreen’s card memberships typically save me the most money at the time of purchase; however, the coupons I get through my grocery store rewards program are also really awesome. Now, I know I mentioned a pizza at 3 AM not being an emergency, but pizza is a good (not healthy) way to feed yourself for a couple of days. I signed up for the Domino’s Piece of the Pie Rewards, and basically get a free pizza every time I get 60 points. (So like every 6 pizzas, I get one free). The same goes for other rewards programs like this. If you are buying food from somewhere frequently, a 6th pizza free or a 10th coffee free is worth it. Also consider that many rewards programs will give you free stuff on your birthday or during special promotional events.Â
Overall, I highly recommend buying groceries versus eating out (ordering pizza, getting McDonalds, etc.) It’s much much cheaper in the long run, and obviously better for you when considering that the Freshman 15 is real.
Can We Go Thrift Shopping?Â
If you are in need of some new clothes - make like Macklemore and go thrift shopping. Being thrifty just means finding bargains. Clothes/shoes at cheaper stores like Walmart or Goodwill are actually pretty nice, and you can get an entire outfit/couple of outfits for the same price as one shirt at a higher end store. Remember that in college, the majority of us are wearing the same three T-shirts and 2 pairs of pants on heavy rotation throughout the week. As the saying goes “your M/W/F life doesn’t know your T/TR life” so don’t worry about dressing to impress.Â
Lastly, Literally Count Coins
This is something I’ve started doing since I pay for pretty much everything in cash. All that loose change is equivalent to petty cash. I usually collect my change, and then take it all to a CoinStar. These are in pretty much every grocery store ever. You put your change in to the machine, and it counts it. You are then usually given a couple options. Typically, I opt for the piece of paper that you can take to customer service to exchange for cash. The caveat here is that they do take a percentage of your money (they do have to make money some how). However, you can also get the money put on a card of sorts, and through this they usually take a lesser percentage of your money. This method is grossly overlooked and underappreciated, but there have been times when I have had at least $10 in change, sometimes upwards of $40. Don’t waste your money by overlooking your “jingle change.” Turn it into dollars by utilizing your friendly neighborhood CoinStar. There is absolutely no shame in this.Â
Happy saving + studying, realistic students!