Volume 010 Issue 003 January 2016
Tips on How to Take Control of Your Finances The New Year always brings new promises. While career advancement and weight loss are at the top of everyone’s list, personal financial management is important as well.
Debt seems to plague college students, especially with high limit credit cards and student loans. That’s why 2016 is a great year for a financial makeover. Dave Ramsey, New York Times best-selling author and America’s trusted voice of money, provides initial steps on how to get out of debt. Debt Snowball Plan The principle is to stop everything except minimum payments and focus on one thing at a time. Otherwise, nothing gets accomplished because all your effort is diluted. List your debts in order with the smallest payoff or balance first. Do not be concerned with interest rates or terms unless two debts have similar payoffs, then list the higher interest rate debt first. You attack the smallest debt first, still maintaining minimum payments on everything else. Paying the little debts off first gives you quick feedback, and you are more likely to stay with the plan. Designed, written and edited by: Ericka Smith
Build Momentum Redo this each time you pay off a debt by adding the minimum payment of the first debt
to the minimum payment on the next debt, so you have compounding payments which will get you out of debt very quickly. For more tips on debt reduction, visit: www.daveramsey.com.
Here are some additional financial management tips for college students. By Hitha Herzog, US News Money
1. Shop smart for textbooks. Invest in a Kindle or iPad and download your books – they are less expensive that way. 2. Do your homework on loans and financial aid. Understand what the exact size of your student loan debt will be upon graduation, and come up with a plan for how you will pay it back. 3. Create a budget. This is incredibly important. List monthly income sources, including savings, wages and parental allowances, and then write down estimated expenses for the month. 1