The Financial Student

What Do You Spend Extra On?

Frugality is great and all – I love cutting expenses and making use of what I already have as much as the next 18 year old kid with a personal finance blog. But there are certain things I pay extra for, even though I know I could get a similar product for less or even do without. I’d rather spend large amounts of money on things that are important to me than just keep all of it locked up in a bank account somewhere like a miser.

There’s one area of my spending that I don’t skimp on:

Electronics
iPhone, iPods, MacBook – I love ‘em all. I know I could have bought a Dell laptop with similar (or better) specs for probably $400 less. But I’m OK with that. A Mac is worth it, in my opinion. I don’t need my iPhone, but it lets me find out anything anywhere. Plus, they throw in free stickers with your purchase. Where else you gonna get that?

Even if I bought a Dell, I still wouldn’t go for the budget model. I want speed and features that make the whole computing experience better, like a backlit keyboard. It’s not necessary, but it’s a a nice extra.

Of course, this means that I’m OK with slashing costs in other areas. I don’t spend much money on clothes, usually only shopping when I need something and there’s a sale going on, for example.

But technology is my thing, as all my relatives and friends will tell you.

What’s yours?

You might be a subscription junkie: Netflix, every magazine in existence, Xbox Live, Hulu, etc. Or maybe you’re into expensive clothes. Whatever. Doesn’t matter.

Leave a note in the comments!

Back to School Guide to Buying a Mac

There are 3 universal truths in life:

• Death
• Taxes
• Apple products will cost an arm and leg, plus your first born child

Just kidding, sort of. Apple does usually charge more than than typical PC manufacturers like Dell or HP, though. But that doesn’t stop the computer geek in me from drinking the Apple Kool-Aid! I’ve been a MacBook Pro owner for the past 2 weeks, but I didn’t pay full price. If you’re a college student, you can get the same sweet deal I did.

First off, you can get a free 8GB iPod touch if you buy a Mac by September 7th. Or apply its price to a more expensive iPod. The choice is yours. I’m actually selling mine on eBay since I already have an iPhone. You can probably net about $150 if you go this route.

Apple also gives you a free printer. I recommend the wireless one – Epson Stylus NX420. Scanning, copying, and of course, printing all in one device. But the best part is the built in wireless. You haven’t lived until you’ve experienced wireless printing!

Last but not least, Apple knocks off $100 on practically all of their computers just for being a student. Not a huge amount by any means – we are talking about Apple here, but a discount is a discount.

These discounts and freebies are nice, but what if you don’t know which computer to buy? Here’s a run down:

• MacBook – Consumer model. Available in a 13 inch screen size only. Will easily run the applications most college students need. Not suited for video editing though. Made from polycarbonate plastic.
• MacBook Pro – Professional model. Available in 13, 15, or 17 inch screen sizes. Made from aluminum. Cool “extras” like a keyboard that automatically lights up in a dark room.

I chose the 13 inch MacBook Pro. It’s probably definitely overkill for most people, but I’m glad I chose it over the regular MacBook. I wasn’t sure if a 13 inch screen would be big enough, but it’s been perfectly comfortable. Plus, I can hook it up to my 19 inch desktop monitor when I really need more space.

If you aren’t a student, there are still a few ways to save on Apple products.

First, check out Apple’s refurbished section here. These products were sent back to Apple for whatever reason and then re-certified to go back out. My first iPhone was refurbished and I had no problems with it. Be aware that some refurbished products are “last year’s” model.

Second, check out resellers like Amazon.com or BestBuy. You probably won’t save much, but it’s worth a shot. Amazon for instance, doesn’t charge sales tax in most U.S. states.

Overall, my MacBook Pro cost about $1100. That was what I expected to spend on a laptop and definitely feel it’s worth it – I’ll be using this computer almost every day and expect it to be with me for all of undergrad.

Learn to Let Go of Your Stuff – Today!

With the school year starting up, I decided to finally get serious about organizing my room and preparing for my course work. I’m also in the process of implementing a “Getting Things Done” system. I won’t go into that here, but you can read more at the GTD Wikipedia page.

The biggest challenge in this process is deciding what to throw out.

I’m probably a bit of a hoarder (though nothing like what you see on the A&E show). I can get rid of Stuff if I feel I really need to, but usually I just stack papers on a shelf and pretend I’m organized. No more!

Over the past few days, I’ve made myself get rid of piles of Stuff. To help make decisions, I asked myself a few questions about each item:

• Do I really need this?
• Would I notice if this item was stolen?
• Is there a better way to store this?

My thought process:

Picked up a pay stub dated for this year. Yes, I should keep this until tax time. I would notice when I did my taxes. Yes, I could store it digitally as a PDF file.

Repeat that for every piece of paper or item in a room, and you’ll quickly realize how much Stuff you can get rid of. The best part is that almost nothing was really that hard to throw away. Just ask yourself relevant questions about the item and make a decision. Don’t spend an hour thinking it over.

So far, I’ve completely filled two trash bags with shredded documents, notebooks from my freshman year of high school, and other random crap like receipts. I’m still not done – there are a few more things that need to be collected and looked over. But I am more relaxed. My room is way less cluttered and I can find anything I may need in less than a minute.

Today is Friday. The weekend will start in just a few hours. Why not finally get a room, office, or garage cleaned up and organized?

Heading Off to College? Don’t Forget These Must Have Items

High school was fun and all, but I’m glad it’s over. On to bigger and better things! For me, university classes start in just over a week. I know many students have already begun, but hopefully they didn’t forget the following things:

Laptop = Basic Necessity - I’m sure that it’s possible to complete 4 years of school without a laptop computer. I never want to find out how though. Remember, it’s also possible to live without electricity. ‘Nuff said.

Shower shoes - For those of you living in a dorm, you must buy shower shoes. There’s no telling what disgusting grime is living on the floor of a communal shower. Do you really want to take a chance of stepping on someone else’s body fluids? Didn’t think so!

A way to stay organized - You can kick it old school and keep a daily or weekly planner along with folders or binders for each of your classes. Or if you’re more comfortable with technology, check out Google calendar, Remember the Milk, and Evernote. Of course, you can mix these approaches pretty easily.

Cellphone - It’s 2010 and I’m not sure if anybody graduates high school without a phone anymore, but I’m putting it here just in case. Without one, it’s going to be hard to maintain a social life and how will you call Mom & Dad for money?

Candy/Junk food - This doesn’t really have anything to do with college, except the fact that everybody likes candy. Right? Keep some in your dorm or car at all times for a convenient pick me up. You’ll thank me when Direct Loans puts your social security number on a Parent Plus loan instead of your dad’s. (Happened to me last week. I downed 7 pixi sticks.)

Something memorable from home - Everyone says they won’t get homesick. They’re lying. Bring along some pictures or something that reminds you of your hometown, family, and friends.

5 Tips for a Great Interview

If you’re a teen and never held a job before, the interview can be a terrifying experience. You have no idea of what to expect and you want to make the best impression you can. Follow these tips and you’ll be off to a great start.

1. Arrive on time.
This is probably the most important rule I can think of. If you can’t even get to to the interview on time, how will a manager know you’ll come to work on time? Especially for the retail type jobs teens hold, employers want someone who shows up for every shift on time. Bonus tip: On those online application tests, when/if they ask you how many times do you think it’s OK to be late in a month, the answer is always ZERO. Always.

2. Dress to Impress.
Yes, it’s the same tip you’ve heard over and over again. But that doesn’t mean it’s not important. While you don’t necessarily need to go in with a suit and tie for most jobs, you still need to look presentable. I aim to dress like I see the current employees dressing, maybe a step above that. For example, during my interview last November at Old Navy, I wore khaki pants and a thin sweater. Nice, but not overly dressy. Basically, stay away from T-shirts, shorts, and anything ripped or torn.

3. Cell Phone –> Off
No interviewer will be impressed by a ringing phone during the middle of your discussion. Keeping it on silent (Note: vibrate is NOT silent) is an option too, but you might get nervous and start thinking “Is it really on silent?”. Keeping it off, but in your pocket, can also be helpful if you have to fill out more paperwork during the interview and you need phone numbers for references.

4. Be Polite
Smile. Laugh if the person interviewing makes a joke. You want to appear friendly and nice. Also, be confident. Explain why you want the job. How does it fit you? Don’t come off cocky. Stick to your positives and act like you want to be there.

5. Follow Up
Unless you are told right then and there that you’re hired, remember to check on your status a few days later. If a week goes by and you’ve heard nothing, definitely call back and ask for an update. Don’t appear desperate or act annoying by calling everyday. Mangers need time to think about who the best applicants are.

Forget the College Experience, I’m Mooching

Just a few weeks ago, I wrote that community colleges aren’t always a good choice even if they save money. I went on and on about how I wanted the “college lifestyle” and “iindependence”. As of today however, I’m a hypocrite. Sort of.

I requested to be released from my housing contract. The university approved it.

In that post, I mentioned that it was going to cost me around 8 grand to stay in the dorm. When I signed housing papers three months ago, it was easy to act like this was no big expense. As the start of school got nearer though, I realized that 8 grand is a big commitment. Not even counting interest. I just wasn’t comfortable with paying that much money to live in a cramped room 35 minutes from my house.

I have other goals that would be negatively impacted by living on campus. I want to study abroad. ASAP. If there’s a program that works for me starting sophomore year, I’m probably going to take it. Study abroad isn’t exactly cheap so there’s no sense in adding more student loan debt to my plate with on campus housing. Besides study abroad, I just want to travel for the fun of it. The less debt I have, the more cash I’ll keep to pay for it.

Personal reasons also played a part in this decision. I was never exactly thrilled with the idea of living in a dorm, but I went along with the typical graduate-high-school-and-live-on-campus process. This is the template lifestyle that a lot of people are talking about these day and it wasn’t really what I wanted.

Unlike a lot of recent high school graduates, I’m not dying to get out of the house. I have healthy relationships with my parents and sibling. My parents aren’t strict – I literally do just about anything I want to do. I just try not to be an ass about it, i.e. No slamming doors at at 2 a.m. Of course, there are other benefits too. I don’t have to do laundry or dishes. I do plan to help out more, honest! Regardless, I have a good thing going here. I’m not ready to change it. (This is the part where the Internet can call me spoiled and selfish!)

Just as our finances change over time, so do our goals and instincts. What we thought was a good decision a few weeks, months, or years ago might not be so smart today.

How to Not Suck at Buying College Textbooks

It’s back to school time and that means one thing for college students: buying text books. Where you choose to make your purchases will have a huge impact on how much you spend. Here’s how to save some green.

First off, AVOID your campus bookstore. Only go there if you want to THROW AWAY your money. Prices will be ridiculously high! Avoid this like the plague.

Instead, we’re going to look online for some sweet deals. There are dozens of online bookstores. Most of them, if not all, should be cheaper than your campus bookstore.

To show the price differences, I’ll be using a personal finance book I need for fall quarter. It’s simply called “Personal Finance” with an ISBN of 9780073382326. Directly below is how much my college is charging:

$180? $140? NO THANKS!

Next, I head to Amazon and search for that ISBN. Below is what I get:

I still think even the used prices are a bit high, so it’s on to eBay:

Evidently, this is the international version, even though the content is the same. This version is also a hardback, just like what my campus is selling. But maybe a paperback version is available…Back to Amazon:

Now I’ve found a paperback version of the same book for a fraction of the campus bookstore price. I look over what the seller has to say about the book’s condition and decide to purchase. Easy huh?

Personal preference will of course play a part in how you buy your books. I don’t mind having used books, as long as they aren’t missing pages or extremely worn out. You can also look into renting your books from a place like Chegg. I’m not a big fan of renting books, but I may check it out one of these days.

The main thing to remember is DO NOT GO TO YOUR CAMPUS BOOKSTORE.

Tips to Save Money and Time On a Road Trip

Last week, I took a small vacation with some friends to Cedar Point and Marble Lake in Michigan. The trip required driving almost 700 miles and as you can guess, road trips can get pretty expensive if you don’t plan ahead. Here are some ways to make a trip as cheap as possible while still having a good time.

Split gas - This is a no brainer, but make sure everyone in the group is cool with splitting the cost of gasoline. You don’t want to volunteer to drive and have your friends assume you’re also okay with paying for all of the fuel. Many cars will even keep track of how many gallons you use, so calculating everyone’s share is easy.

Avoid fast food - Fast food is convenient and usually tastes good, but isn’t all that cheap. Instead, pack a cooler with plenty of beverages and snacks. Lunch meat and bread will allow you to completely avoid fast food.

Limit stops – Avoid stopping unless you really need to. Every break at a rest area will tempt you to spend money – usually on junk food from vending machines. Gas usage will also increase if you’re constantly getting on and off the highway.

Consider getting a GPS unit- GPS makes long distance driving so much easier. These days, any basic unit will have plenty of features for most people. No more trying to read a map while driving or hoping you don’t miss an exit. At the end of the trip, just tap “Go Home” and you know you’re on the (correct) way.

Use your connections - To really drive down the cost of traveling, see if you have a family member or friend who will let you stay with them for free. This won’t work in all situations, but when it does, you’ll save a ton.

Plan, but not too much – My friends and I planned our trip pretty well, but not everything was perfect. We knew that pop would be way more expensive in Michigan, so we bought some in Ohio. But we underestimated how much gas we would use for the trip. Life goes on.

On Vacation!

Hey everybody, I’ll be on a mini-vacation from today until Friday!

Have a great week!