This piece is the eighth in a series of “Ask an Alum” columns that will be periodically published online through a partnership between Elon University’s Young Alumni Council and The Pendulum.
I am not here to beat a dead horse and tell you that you need to save money and budget your finances. Not only should you budget your finances on a monthly basis, but it would probably be a good idea to write out a weekly (and maybe even an annual) budget as well. But again, I am not here to tell you that. I am here to provide a little insight to the real world and what it could cost you.
Just a few years ago, with the American economy booming, banks loved seeing private school students walk through the door to open bank accounts. As students at a great university, and one not necessarily considered to be inexpensive, we were just who the banks were looking for. What does that mean for me, anyway? Well, I can tell you from personal experience, it means they gave me the world as far as a credit limit is concerned and unfortunately, I enjoyed travel. Traveling abroad with Elon and for pleasure became my favorite university pastime. I am glad I had a great time and have those memories, since technically they are still being paid for! See, that’s just it. How naïve of me to believe that the money I needed during my school years grew on trees and would always be there.
I was lucky. I graduated from college without student loans. Today, most students cannot say that. I worked many long hours and nights on the mean streets of Lebanon Avenue and College Avenue in our old favorite dwelling places (Lighthouse and West End). Lighthouse, for those of you who are not familiar with this wonderful establishment, was located where Taphouse used to be, just down the street from Pandora’s Pies. It was there that I learned where hard work and budgeting appropriately can really pay off. In the bartending industry (especially in Elon), you never have any idea how good a night is going to turn out. When I began bartending, Mondays and Tuesdays were huge in addition to the typical Wednesday and Thursday evenings. As the years continued, Mondays and Tuesdays became very flat with the occasional outlier, but budgeting and tightening up the expenditures was vital to maintaining my financial stability.
Think of it this way: this was my experience, and it occurred while in college when my parents still helped out. Once you graduate, chances are, you are on your own. Think about what you budgeted for in college -- school supplies and books (maybe), food, nights out and maybe some other extracurricular activities, such as fraternity and sorority functions. Budgeting in the real world is entirely different than in college. Now you have “real world” expenses -- shelter (rent/mortgage), food, utilities, transportation, clothes for work and, again, probably some nights out. You want to know the cost difference between the two? A full time job, and even then it can sometimes be a stretch.
In the words of Dave Ramsey, “Live like no one else, so you can live like no one else.” What he means by this is while you’re young and growing in your work career, live beneath your means now so when you grow financially, start a family and ultimately, retire, you can live any lifestyle you decide to live. Don’t drown yourself in debt, live strategically. Don’t be afraid to drink water and avoid the “Simply’s” of the world. Rice and beans make for a healthy, hearty, very cheap meal as well, and let’s not forget Ramen (there is a cookbook with 120 creative recipes for Ramen)! Designate the needs vs. the wants. Concentrate on meeting your financial needs first and once there’s room in the budget for the wants, stick them in there. Budgeting is a difficult task. If it was easy, everyone would do it. But, those who pull it off and stick to it swear by it. Be financially able and not financially inept, which all begins in one place; a budget.
Since graduating from Elon, Andy has gotten married and moved three times and has now settled in Toledo, OH. He works as a Project Manager for total quality management software company, aboutthree, LLC. You can follow him on Twitter @andymfox.