Financial start for student?

[Gabriel.B]

Heya everyone, I'm a student, studying Illustration & Animation (year 1) in Newcastle upon Tyne, UK
I'm going to start off with the usual student jobs, but I really want to get going as soon as possible and set some foundation stones for financial success asap, so I wanted to ask wheather anybody could shed some light on this subject and give any suggestions on where it would be best to start.

Cheers =)

[norbert]

Basically it takes no money to make money. You need to use other peoples money and other peoples time. Both at the same time. Because:
- Other peoples money: if you don't have money, you don't really have another option. You could look for investors but that has so many limitations and with no past they'll barely invest in a venture.
- Other peoples time: you need to delegate as much as you can. There's only that much hours in a day.

Here is my current world view to hopefully save you some years of trial-and-error. Money can't be found on the street. It is only found in other people's pockets. Thus you need to get them give their money to you. They are happy to give it to you in exchange for solving their problems (everybody's doing that in the world - even you at home; think about shopping, cable-TV, Internet, etc; you are happy to pay because they solve your problem). Once you have a problem to solve, you need to find a solution and start executing it. People will pay you so you can start paying some employees, which generates more money in return and it goes on and on like this.

Robert Kiyosaki's materials are a great start (although it might be all fiction). Especially the "Choose to be Rich" and "The Cashflow Quadrant" series. Also the "Rick kid smart kid" or whatever it is called. Don't take the story seriously but it definitely changes your pov.

It takes no money to start. Am I right, Steve?

[Gabriel.B]

Hi Norbert,
Thx for the ideas, I've read and am familiar with Robert T.'s material, and as much sense as it makes, it currently doesn't help me much because being 20 the skills which I'm currently further develping, which I'll be making of money in future, aren't of a professional standard yet, so I'm wondering if there are any other possiblities?

[Henry]

Originally Posted by Bhairava Brenner

Hi Norbert,
Thx for the ideas, I've read and am familiar with Robert T.'s material, and as much sense as it makes, it currently doesn't help me much because being 20 the skills which I'm currently further develping, which I'll be making of money in future, aren't of a professional standard yet, so I'm wondering if there are any other possiblities?

Bhairava,

Before you go on your road to financial freedom, make sure you:

1) Paid all of your credit card debt.
2) Created an emergency fund.
3) Learned the basic understanding of personal finance.

#1 and #2 are especially important. If you wanted to start your own business, #2 will allow you to eat and sleep without a job while you get things going.

[ahimel]

I'm with Henry all the way -- that's the basics.

See if you can find a copy of Richest Man in Babylon. My parents gave that to me at the same time as Rich Dad, Poor Dad. Where Kiyosaki is great at telling you what to do with money (but assumes that you can lay your hands on a million dollars with no difficulty) George S. Clason assumes that you are an intelligent but low-paid slave who's struggling to meet your monthly expenses.

[jkmuller]

I've read some of the books mentioned so far and I've definitely heard this advice over and over. It is sound advice to be sure and it is far superior to the "start a business with credit card debt" method, but I don't think that this advice will solve your present problem. This advice is more of the "what to do the money you've already made" type.

In my opinion, the best thing you can do to lay a foundation for future success is to stop looking outward for advice. Never be satisfied with someone else's answer unless it is your own as well. It is much harder to find your own solutions than to simply look for quick advice, but it is a skill that cannot be developed too much. Look and see what you have to offer (everyone has something, even if it is only their body and time, aka a hourly job). I have a feeling you have some interest or hobby that could be monetized if you really wanted to. Only you can figure that out.

[sjpeer]

I agree that now is the PERFECT time for building a solid financial foundation. You can never make up lost time when it comes to investing.

I would add that you should do things you really enjoy. If you're not enjoying a high percentage of the process, it's probably not the right path. To get started I would:

1. Start brainstorming ideas for making money. Don't edit or evaluate the ideas, just start writing them down. Do this for a week or two and try to write down 3 ideas a day.
2. Once you have a solid list of ideas, look through them and see which ones jump out at you. Which ones are the most exciting and interesting to you? Which ones would you LOVE doing?
3. Choose the idea you would most enjoy and write out a roughly plan of next steps to start taking action on your idea. This may simply be researching your idea or making contacts.
4. Start taking consistent action towards making your idea a reality. Dedicate a set period of time EVERY WEEK toward doing nothing but working on your goal.
5. If things aren't working out or you have clarity mid-stream that a different idea is better or more enjoyable, don't be afraid to switch.

I used these steps to start my blog GettingFinancesDone.com and have had tremendous success. I'm only able to dedicate 4-8 hours a week on it but have made significant progress nonetheless and have enjoyed every minute.

The key for me was just taking action. I dedicated one night a week to work on it (I have a full-time job) and actually started out on a completely different project. After a couple of weeks I had absolute clarity that I should switch gears (even though I was enjoying the project I was working on) and start my personal finance blog. Because I was already setting aside time, it was easy to re-focus my energy on the new project.

Your progress towards business or personal goals is like steering a car. If you've ever tried steering a card without power steering when it is stationary, it's very difficult to turn the wheel. As soon as you start the car moving, even if it's slowly, suddenly the wheel is very easy to turn. Similarly, if you just start moving and dedicating weekly time to your business development, it will be much easier to steer your projects where you want them and refine them as you go. Deep analogy, I know.

Not only that, but you'll find that once you start moving, unexpected things will show up in your life to help you reach your goals; money, contacts, opportunities.

The great thing for you is, you have plenty of time to figure things out and if you have success early on, it will set you up to have an incredibly fulfilling, prosperous life.

[Love]

here's my question.
Basically, I see two methods espoused for getting rich.
A) Build a business
B) Invest in someone else's business

I feel like I can't do B, just because to budget savings for investing would take out more from my strict budget than I probably could afford. I've heard of pay yourself theories. I'm having difficulty with that one.

I feel like I don't want to do A. Basically, I want to do teaching in some form, and spend my time and effort on becoming a better teacher. I don't really want to spend time and thought and heartache on building a business.

Are these the only two ways to wealth? Do I really need to just buck up and give one of them my best shot? Or is there any sleeper way to wealth that doesn't take any capital and not too much time?

-Love

[Leonard]

Originally Posted by Love

here's my question.
Basically, I see two methods espoused for getting rich.
A) Build a business
B) Invest in someone else's business

I feel like I can't do B, just because to budget savings for investing would take out more from my strict budget than I probably could afford. I've heard of pay yourself theories. I'm having difficulty with that one.

I feel like I don't want to do A. Basically, I want to do teaching in some form, and spend my time and effort on becoming a better teacher. I don't really want to spend time and thought and heartache on building a business.

Are these the only two ways to wealth? Do I really need to just buck up and give one of them my best shop? Or is there any sleeper way to wealth that doesn't take any capital and not too much time?

-Love

I'm sure people will agree that there is no fast track to wealth. You have to be 100% commited to what you are doing even if it means 2 hours a day. It is however possible to start on a business without much capital. Look around you, and find business opportunities. They are everywhere. Think about what your interests are, and how you can capitalised on them. Everyone has ideas that people want to know.

[mattinglot]

I second Richest Man in Babylon along with The Wealthy Barbar. These books complement each other really well (and overlap quite a bit). Babylon is great for laying down philosophy and presenting financial matters in a way completely independent of time or place. Barbar gets a lot more specific about what you should be doing. The latter is specifically a Canadian book, but I can't imagine the US being so terribly different that it wouldn't apply there. Or for many countries for that matter.

[jkmuller]

Originally Posted by Love

here's my question.
Basically, I see two methods espoused for getting rich.
A) Build a business
B) Invest in someone else's business

I feel like I can't do B, just because to budget savings for investing would take out more from my strict budget than I probably could afford. I've heard of pay yourself theories. I'm having difficulty with that one.

I feel like I don't want to do A. Basically, I want to do teaching in some form, and spend my time and effort on becoming a better teacher. I don't really want to spend time and thought and heartache on building a business.

Are these the only two ways to wealth? Do I really need to just buck up and give one of them my best shot? Or is there any sleeper way to wealth that doesn't take any capital and not too much time?

-Love

But look how easily you just ruled out all of your options! What if your business involved you teaching? Never be so quick to cross out your options. I would suggest that you find a way to satisfy your financial needs in a manner that is totally congruent with your lifestyle. If it feels wrong or painful to you, don't do it! Don't try and conform to artificial constraints.

[Gabriel.B]

Wow, thx for all the quick responses and advice!
I'll start putting it to use asap, appreciate any further ideas, input

[Love]

You're right, you can work a business around your interests. And I guess my thought is that if even if you worked a business around your interests, the business aspect of it could still be very unfulfilling. However, how can I really know unless I try my hand at it? Like it was said, I'm talking myself out of it without even knowing that much about it. I guess I need to get some more information, maybe specifically about people turning their interests into businesses. However, the babylon book may be another place to go for the basics. I appreciate everyone's thoughts, thanks.

Here's to my future as a millionaire!

Love

[Waffle]

Hi!
I certainly second the idea of doing a business around your interests.
You are doing what you like and earning income to support oneself.
What could be better than that?

For few years now, I have seen many who work with no aims.
They simply work for their paychecks and are simply unhappy with their lives... I see no point in "torturing" oneself this way...

I am currently a student also, I am always short of business ideas...
After reading through your posts, I think I would start brainstorming for ideas and putting them down no matter what... Perhaps some potential business can come true...

Thanks!

[Conn Stell]

I think focusing on financial independence is better because it’s a goal clearer than getting rich. Financial independence = when your investment monthly income equals or exceeds your monthly expenses.

Here are a few steps:
1. Eliminate debt
2. Reduce expenses
3. Increase income
4. Save money
5. Invest in income-producing assets
6. Invest in your own business

Good Luck!

[richie]

hey how about using intention-manifestation to brainstorm ideas.
i have many ideas but none that i wknow would make me a millionaire

[Akashic_Librarian]

Just use intention manifestation to GET money, as much as you want...

[Horizon'sEdge]

Hi there Bhairava!

I graduated a year ago and (I'm also from the UK) and here are my thoughts on what I did right and what I could have done better.

1) Pay off any bad debts... credit cards, commercial loans etc. There is no point in saving until these are paid off. Get in the habit of paying your credit card off each month... otherwise interest payments will undo any cashback/air miles advantages.
2) Don't worry too much about the student loan... it's a "cheap" loan and the current interest rate is about 3.2%. If you can afford to, put money that you earn/save into high interest accounts (online or ISA accounts) that pay about 5% at the moment. It's more cost effective to put the money in a high interest account than pay of a low interest loan
3) Monitor your spending... my money didn't get wasted on big purchases... it was the odd pre-packed sandwich here, a CD there, a Starbucks coffee somewhere else... run through your statements (this is why I like using a credit card... they itemise better).
4) Focus on your course: a good qualification could return £50,000—£200,000 extra over your career.

Above all, that's about all you can do for the moment! Enjoy your course and enjoy the habits you're starting now.

[mustard76]

Originally Posted by richie

i have many ideas but none that i wknow would make me a millionaire

I also have a ton of ideas, but find it hard to choose one to work on. I found that it's nearly impossible to think of a brilliant idea for a business. Instead I focus on ideas that I am passionate about and rely on potential customers to help be develop the idea.

For example, I am passionate about playing poker so I came up with a business idea that involved selling information to poker players. My idea was not very good at first, so I identified my target customers and did some interviews. Each time I talked to a poker player I refined the idea until it became a brilliant idea. Of course, in the end I was selling a completely different service than I originally envisioned.

I think you should focus on learning how to turn a mediocre idea into a brilliant idea, rather than trying to spontaneously invent a brilliant idea.

And choose something you are passionate about, otherwise you won't have the motivation to get you through the hard times.

[Gabriel.B]

Hi Horizon'sEdge

Thanks for the post, could you give me further details/links on the online accounts you mentioned? I'll be watching out for the other tips,
cheers

PS: If there are any people around newcastle interested in becoming financially independent or simply in personal development, it'd be awesome to meet up

[RT Wolf]

In terms of making money, I mostly make money fixing people's computers, teachign them about cameras and/or filmmaking, or helping out on sets. There aren't many places I can stick a resume, it's more of a "get your face out there" sorta dealio. So if you have any interests, start telling people (even just friends) that you wanna start a business around there. You'll likely find more work from just talking to friends than starting up a formal business (unless that's something you need/want).

I know this is more "what do with your money" advice rather than how to make it.

The Big Picture: Dilbert's Unified Theory of Everything Financial'

Index investing FTW!

Stocks is my ticket to richdom! Fool.com: Investing, Stock Research, and Personal Finance has more info about how I invest.

[jennifer]

hi
im a 3rd year art student in carlisle and have struggled with similar problems ie how to make any actual money from being an artist
i think its great that youre considering these things now, rather than sitting back and living off your student loan for 3 years, which is what i've done (oops!)
good luck with it all! you'll have to keep us all updated on what you do

[codefreeze]

I'm with Conn Stell on this one.

However, at this stage I wouldn't worry too much about starting a business. Just work hard and save hard. Invest in property as soon as you can.

Learn to monitor your income/expenses like a hawk. Managing your money sounds basic - but far too many people really haven't a clue about how to do it.

[Mr D]

Originally Posted by norbert

Basically it takes no money to make money.

That is a little bit deceptive, and far from the truth. Yeah, it doesn't take money to go get employed for someone, but to make big money, you better have some big money.

Borrowing money? This is not a simple idea, as you better have a good credit score so your ROI will be much higher. Oh and good credit does require money, and money management.

I don't think you'll find very many people, Kiyosaki included, that will tell you it doesn't take money to make money. Are there some areas in which that statement could be true? Of course, there is always an exception to almost anything. However, for general purposes, that is not true.