How to Avoid a Lifetime of Debt and Make The Best Financial Moves in College

I was just like you. I was a young laid-back freshman with all the expensive university branded gear. Sweater. Short-Sleeve over Long Sleeve in Florida. Baseball jersey (because I couldn’t afford the football/basketball ones), and two baseball caps.

I even had the binders and planner.

Table of Contents

You Aren’t Official Until You have the College Logo Everywhere

I was an official college student, living Off Campus. On the weekends, I spent most of my time; kinda working, not doing homework, partying and pretty much hitting up the ladies (the latter being my priority for some reason). On the weekday, It did the same thing pretty much.

I went from getting a pre-college part-time paycheck from Best Buy of $250/bi weekly to netting a surplus in financial aid/work-study for about a tune of $2,000-$3,000 per semester (3 months) with part-time work-study slavery ($500 per semester). Factoring out rent/utilities for about $1,400, food for $1,250, and Gas/Misc. of $500. It’s kinda easy to see that money wasn’t flowing.

To resolve the financial shortcomings, the terrible Game of Student Loan Debt and Credit Cards (CC) begin.

Frisbee, Student Loans and Bad Debt

For a FREE t-shirt, a pen, or a Frisbee; I found that CCs were ready and willing to help. Way too willing when I think back on it. ⇠ It’s a trap!!!!

By the end of the game, I walked away from my alma mater (whom, when you delete one letter spells FU. Coincidence?). FU got my team spirit. I earned no job and about $80,000 of student loans and $2,000 of CC debt.

My first real job was as a glamorous Assistant Secretary II ($23k before taxes). The worst part, my paycheck was monthly. Things eventually got better. I took the black (GOT reference) and headed to the wall (aka Washington, D.C.) for a better sedentary job.

By the time, my college journey ended, I added an additional $5,750 to my credit card. I owed $125,000.

When Bad Gets Worst

My car needed to be tuned up for the journey north and that was costly ($$).

I had to stay at a Red Roof Inn ($$) for 2.5 days and then, I finally got into the rental at FoxChase Apartments which required a refundable deposit ($$$), first month’s rent ($$$) last month’s rent ($$$), and a vile of my blood for verification.

To make matters worse; I needed utilities and Comcast, each requiring deposits/initial installations ($$$) and likely a portion of my soul.

When it was all said and done, I slept on the ground for a month because I didn’t have any furniture ($$).

*Turns out, they (the old Florida job) hold your last paycheck (last job) for a month. To add to my humbling, I wasn’t getting a new paycheck (new job) for a month. Ramen noodles sustained me. The struggle was not televised. I had no heat nor hot water. And it felt like negative 10 degrees in the room.

Tip: stay on the job and use up all the sick leave so you can get paid.

Avoidable Pain

It was rough. I share all of this because it was AVOIDABLE with prior planning. Overall, after talking to loads of recent grads and younger professionals who understand the struggle; it seems that an average of $5,000 is needed when moving during your post-grad season.

This is a HARD warning or preparation technique. The number can vary from place to place, however, it’s a safe bet that you will end up using it or if you are fortunate enough you can eventually invest it if you don’t need it.

“Been known to teach, so Let’s get it, you college students.
Sidenote: I didn’t attend FIU even though my profile pic has me looking like “Panther Pride”. This pic also part of an orgy of unrelated coincidences”

$5,000 PLAN

1. Set up your debit card for Acorn, Betterment, or Robinhood. Better yet watch this video to get a better reason, why I think this is a good move for you. Set and forget.

2. Next up, in a (regular) savings account at your bank, Save up to $1,250 in year #1. This will also help in case of extreme emergencies. Getting clothes does not qualify. If you deplete this, work your A$$ off to get it back. A $1,000 emergency would push many Americans into debt. Don’t be those people.

3. The remaining $3,750, you will have to save in high-interest savings account from year #2 – year #4. *Adjust annually – Ally Bank has 2.00% as of 12.2018.

Here’s a cool way to trick yourself to save the $3,750. Start with an initial $100 in December of your Freshmen year, and invest $100/month for 3 years using the Ally Bank at 2% (Example #1).

If you want to be bold like me, start at $250 (that you got from the parents over the holidays) and invest $125/month for 3 years (Example #2)

The Grand Total for your Efforts

In your Acorn over 4 years and all those random lattes, you might next $500 in investments. You have the $1,250 for emergencies. While in your high interest, you can have either $3,812.14 or $4,897.83. Please feel free to check the compounding math calculator. Play around with it. Totals either $5,562.14 or $6,647.83. Depending on the difference, that’s an easy flight overseas. Example #2 got $1,647.83 to play with. *Next up you might want to read my Net/Max Financial Plan article since it’s popular and for important people like you.

You are looking like you are ready to conquer moving to any location.

Fact-Checking – Example #1

Fact-Checking – Example #2

Bonus Content:

If you invested all of the $5,000 through Ally. Starting at $250 for 4 years at a monthly rate of $150…

With that, I’m signing out and thinking of the next solution-based article. Don’t be the broke average person who looks rich but seriously depressed lol.