Tuesday's Tips

Happy Tuesday everyone! With my second edition of Tuesday's Tips I would like to talk about a couple things I have done over the years that helped me stay out of debt (especially through college).

1) Having a credit card, but using it sparingly. It is very easy to get into credit card debt in college. Banks are always offering credit cards and they usually include something like a free t-shirt or even free downloads of your favorite songs. However, these cards can have obscenely high interest rates, and the banks are really hoping you'll get into debt and collect that interest. However, you need to start building credit so you can buy a car or a house one day. I had a credit card when I was in college and I never got myself into debt because I followed a simple rule: use the card for one thing only and nothing else. My one thing was gas for my car. When I would make trips home on the weekends or drove around the city I would have to fill up every now and then. I only used my credit card when I needed to fill up my gas tank. I paid cash for anything else I needed or wanted. If I didn't have the cash I wouldn't buy it. By doing this I was able to build credit without getting myself into debt. I paid the bill every month and never carried over a balance, thus eliminating the interest that would accrue. This should work for most people unless you're buying $100 worth of groceries every week or using your credit card only for bar tabs (this is a bad idea, especially when you feel nice enough to buy rounds of shots).

2) Go to the library for books. Whether you need a book for class or you are looking for a good read always consult the library. Many public libraries are part of Ohio Link so you may be able to get a book that your local library doesn't have. This rule is doubly as important for college students. Having to buy books every quarter/semester gets pricey, and this is a great way to get those books without having to pay $1000+ each year for school. I know that my girlfriend and I have saved well over $2,500 with all the books we've gotten from the library this past year just to read for fun (that price is based on sticker price of book at local bookstore). So we would be in a very different situation financially if we purchased every book we wanted to read.

As always please comment with your own tips to share them with others. That's what we need to do to spread knowledge and change our futures.

I'm on a 168 hour break, so until then Stay Tuned...