The Low-Down on Student Money Problems

How much money do you spend per week? $50, $150 $300? But more importantly, what do you spend it on; food, rent, Uni fees, alcohol? There are so many students in the red because they don’t know how to manage their money properly, they just live day-by-day, hoping that what’s in the bank will get them through until their next payday. You’ve got to start looking after your money.

In this article, we’re going to be looking at several different ways work towards solving your money problems – mind you, these tips aren’t exclusively for students, anyone can use them for their success.
Relying on Centrelink?
For those of you that aren’t from Australia, Centrelink is a government-funded agency within the Department of Human Services that delivers a range of government payouts and services for retirees, the unemployed, families/carers/parents, people with disabilities, Indigenous Australians, students aged between 16-24, and those from diverse cultural backgrounds. Many people rely on this service to give them fortnightly payments to keep food on the table and a roof over their heads, as well as the luxuries that they otherwise wouldn’t be able to afford (alcohol, cigarettes, tickets to events etc.).
Although it’s great to get benefits from the government of all tax-payers money, you’re expected to use it wisely, to sustain a healthy lifestyle.
Have a Student Loan/HECs Debt?
Yes, these are absolute life-savers in your studying years, but you’ve got to remember that you have to pay them back at some stage of your life. Having an education debt is one of the better debts to have, no doubt about it, but from here on in, try to minimise your borrowing, having that certain burden is going to be hard to shake. Lessen this burden by applying for grants and scholarships, purchase second-hand books, and really look into the education quality of each of your possible courses, do you really have to go to the top-ranked college or university for the same level of education that you can get at a lesser-ranked one?

Got a Job?
Pretty straightforward question, but do you? Even if it’s at KFC, or a clothing outlet store, any income is better than no income, at least you know that you’ll have something coming in your bank every payday. If not, why not? There are so many different ways to get a job nowadays, you can begin by volunteering, try work experience. Another way is to get that dream job is to have lower expectations that what you ultimately want to do – this means that you accept a job to Subway before you hit the big time in graphic design, or you work as an aid, or relief staff member for a year or two before you get into that teaching position you’ve been studying your butt off to get into. It’s all about your mindset and having the ability to understand that you have to work your way up to
greatness, whether it be that you have to sit behind the admin desk in that law firm before you get to become that speedy typer that takes care of all the court notes

Going Out Every Weekend?
This is the ultimate killer, using your money to party with your friends. Yes, it’s a great social outlet, and it’s fun to get absolutely plastered drunk every weekend, but you have to realise that there is bigger and better things to work towards than seeing how many Cruisers you can chug before vomiting on your mate’s shoes. With the money that you use to get into the nightclub, on top of the slab of drinks that you bought, you can ultimately use it to feed yourself for a week, put it away for a holiday, or invest it in something that will get you a higher return on it so that you can enjoy your
retirement debt-free.

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Stocks vs Real Estate

A long debate among many professional investors has been ‘what is better: stocks or real estate?’ Both have an argument on who is better, but personally, I prefer real estate. Real Estate without a doubt a safer investment overall but also has a lower ROR (rate of return). Whereas stocks, on the other hand, present a much higher risk for your investment but can get a return of 10%-20% yearly.

Stocks:
Investment of your money into is one of the most popular forms of investments. The benefits of stocks or shares are that it can be done today – right now, you can go out and buy shares in any major company and your money will become an investment. The downside of stocks is that they are risky. These days, people do say that you can minimise your risk by doing your research, but no one can predict the market, so the risk factor will always be there.
Now stocks prices go up and down, so to say stocks will always make you’re a nice return is a bit naïve. While you might make a return 10% for 10 years (well done you have doubled your money in 10 years) but what if the market crashes and you lose 50%…

Year 1:   Invest $10,000
Year 1-10: Rate of return 10% yearly
End of year 10:  Value $20,000

Market crashes loss of 50% = Back to $10,000 aka 10 years wasted.

This is where the stock market can get you in trouble as the stock market drops on average every 7 years. The odds of you seeing 10 years in a row of growing as pretty slim.

Real Estate:
Real Estate isn’t as easy as stocks to get into as the takes a lot more money to start with, more research and more time. For these reasons many people have looked past a real estate investment as they think it’s too hard. If you do the work you will see the reward.

Real Estate investing can see a lower return and the same amount of risk as the stock market if you play your cards wrong.
But we’re not about that here at Investercon so here is how you make money in real estate.

Say you buy a house for $300,000 you put in your deposit of 10% (or $30,000) congratulations, you own a house! You can rent this house out for $300 a week, but you will have to wait 25 plus years to see any positive cash flow from the house.

Whereas if you buy a house for $260,000 with a value of $300,000 you will have made $40,000 in-house equity in only a day. This equity is classed as a paper asset (because you can touch the money for at least a year).

A year’s passes by and you have paid $15,000 off your house, so you now have $45,000 of equity in it, which you can get off the bank by refinancing your home. With this new-found money, you can invest in another house and repeat the process.

This is where real estate beats the stock market; a house will rarely lose its value, even if the housing market crashes and the value of your property decreases, you will still have the income that the houses provide (rent), leaving you with a passive income which can’t be taken away. The housing market is also much faster at recovering then the stock market, making real estate, hands down, a better investment for your money.

 

 

 

DE-STRESS YOUR LIFE: No. 2

Back for more ass-kicking? Sounds good to me!
So, now that you’ve got 3 ways of how to destress your life down-pat, it’s time to add a few more to your collection to give a go, so I’m just going to just straight into it.

Stop Procrastinating
How many times have you put off doing something for the longest period of time just by fiddling at your desk, playing with something you found in the cupboard from years ago… Well, NO LONGER! It’s time to stop procrastinating. Remind yourself that there is always more to be done than what can be done. Are you getting the right things done?
– Break down the task that you’ve been putting off so that you start to feel less overwhelmed, and once you start accomplishing the little things, you’re more likely to keep going.
– Make your to-do list, then make a smart to-do list on top of that which is filled with all the things you’re avoiding, then set deadlines for them.
– Eliminate distractions and avoid temptations, turn the computer, phone, TV off. Teach yourself a lesson.
– Bargain with, and reward yourself, if you get this post done now, you can watch the cricket later.
– Focus on how you’ll feel once you’ve completed that blasted business plan – relieved, success, joy
– Scare yourself with consequences that will stop you from avoiding the task, whether it be no TV until you’ve finished, or not going out on the weekend, whatever will work for you.
– Ask for help. There’s no shame in asking for help, that’s what your peers are there for, help and support. Get them to come over and smash out the report, and afterwards, you can reward yourself with a glass of wine.
– Make your plans public, it adds more pressure for you to get it done but will be worth it to save your embarrassment when Joe asks you whether you’ve finished your writing piece from three weeks ago, and you have to reply with ‘no’.

Avoid Multitasking
Quit trying to do 10,000 things at once, sure you can listen to some instrumental music while you’re typing your essay, but don’t try to do that English essay while trying to complete a math problem and a biology questionnaire, and no, you may not still be at school, but the theory is the same, and it’s just insanity!
If you stick to one task at a time, it obtains your undivided attention and will get done faster, and to a higher standard.

Stop Saying ‘I Should’
There are so many instances that we think to ourselves “oh, I should be doing this”, or “I should be more like that”. Stop saying ‘I should’ and start doing those things that you keep beating yourself up over. Alternatively, are you doing things because you should, or because you want to? Once you define what you should and shouldn’t be doing, stresses start to ease.

Holiday
Go on that darned holiday that you’ve been putting off for three years now. It’s not helping you to stay put, working day-in-day-out, dreaming about the things that you could be doing. Muster up the courage to ask Mr. or Mrs. Boss Lady whether you can have some of your annual leave so that you can take a break to refresh and start again.