Keep a Positive Cash Flow
This post was written by Shun Ping Huang ’17, CCD Peer Career Ambassador.
Being broke is a part of the general college experience. However, as Babson students, many already have investments and complex tax returns, but neither indicate a positive cash flow.
Here are some tips on how to save your internship money and keep a positive cash flow:
- Have Two Bank Accounts – One account is for everyday use and the other should be dedicated to savings. If you have a paycheck, you should set up direct deposit to your savings account. Each month, transfer a certain amount of money (according to your budget) from your savings into your “everyday” account and only that amount from the “everyday” account. Stop spending when you have used up your “everyday funds.” This method works better than the “use only cash” rule if you prefer swiping a plastic card over looking for change.
- Budget Your Nights Out – For those who live on-campus and use the meal plan, we don’t have to budget for the obvious things, such as rent, food, gas, etc.; however, this means we need to place more focus on budgeting for our Thursday and Saturday nights out.
- Do Research – Actively search for cheaper alternatives. Alternatives are only cheaper if the time you spend on it is worth the money you save. For example, going into Boston through Uber is $50, which takes 45 minutes, whereas spending 1.5 hours on the T train might save you $30 (after $15 taxi fare and $5 T-Pass). Is the $30 worth your 1.5 hours? If so, then the train is a cheaper option, but if not, then Uber is a more attractive option. Of course, there are more technical details to the cost and benefits, but for a simple, general purpose, this works.
- Take Advantage of Student Discounts – Here is a list of good student discounts you should take advantage of while you still can!
- Build Connections – Valuable connections are a long-term investment that can make you more money than any bank account. These connections can help you get a job, advance your career, and provide valuable life-advice.
During Thanksgiving break, we will have time to apply for internships, set up meetings with professionals in the area, and take a closer look at our financial status!
New Trend: Women Leaders
“Women are increasingly their households’ breadwinners, and they are more likely than men to enroll in and complete college. Women are also a growing market, exercising decision-making control of an estimated $11.2 trillion in investable assets, according to the Center for Talent Innovation.” – The New York Times
As an aspiring financial advisor, I am very excited to hear that many wealth management firms are now offering customized financial and investment advice for women. “The gendered focus isn’t necessarily being driven by women’s need for extra help,” but is instead a response to a growing target market of women leaders. These products, some created by fellow women leaders, are meant to empower women to not only manage their financials, but to also build net worth. Read more about this amazing new development here.