Econ 101
By Adam Rathe | MainStreet.com

For kids about to start college, there are plenty of experiences to look forward to, but for far too many students debt will also be on the horizon. And with little practical knowledge of finance, those who aren’t careful can graduate with way more than just student loans hanging over their heads.

“Every golfer hates Tiger Woods because he started playing golf in the womb,’ says Alan Corey, author of A Million Bucks by 30. “Those pre-natal golfing lessons have obviously paid off because he started playing golf so much earlier than the competition. The same applies with finances—the earlier you start, the wealthier you are.”

But where to start? Between books, booze and snacks, most students don’t have two dimes left to rub together. “If you are going to live below the grid financially, you might as well make the suffering fun,” says Corey. “Find free concerts in parks or stage your own rock show there. Host a ramen noodle cook-off with friends that can feed a party of twenty, or have a $2 thrift-store party where everyone has to wear an entire outfit they bought for under $2 at a thrift store. I’ve done this, and I found such great threads that I still wear some of them even today - and get compliments.”

Looking for a more creative endeavor? “Host a drunk art gallery,” Corey recommends. “Everyone comes over, gets blasted and paints something. The next day, bring your hung-over selves and your modern art to the local flea market or garage sale, but keep the drunken aspect of it under wraps. Price them $15 - $100 each and watch the offers fly. It’ll at least be enough to cover the costs of your drinks and paint for the next go around.”

But it isn’t all fun and games. Students who save are sure to have an easier time transitioning to the real world after graduation. So, unless mom and dad want to refill an empty nest, they should keep a keen eye on the way their kids spend.

“It can be a challenge for college students to manage their finances when they first head off to school, says Steve Katz, director of consumer education for TransUnion’s TrueCredit.com. “While flexing their independence, some flex their wallets too. That’s why it’s so important for parents to sit down with their kids well before the school year begins to map out a spending plan. Parents and students should determine how much they will have to spend each month, how it should be allocated and should discuss what happens if they run short on money.”

Part of that discussion includes the importance of not racking up credit card debt when they do run short on cash. Citing a survey to be released next week, Katz says, “Nearly one in four respondents left school with more than $5,000 in credit card debt. In fact, one in 10 respondents indicated they owed more than $10,000 for purchases made with credit card.”

Corey also says to avoid credit cards that come with gimmicks like free t-shirts emblazoned with a bank’s logo. “Pay cash for everything until you have graduated,” he says. “That’s the definitive way to avoid both debt collectors and the fashion police.”

Related Articles:

How To Be a Millionaire By 30
Where To Turn For College Student Loans
Clock’s Ticking for Student Loan Applicants

How do you become a millionaire by thirty (or hey, even earlier?) Could you do it if you’ve passed the 3-0 mark?

The book I read this weekend explains an unconventional approach. The book is “Millionaire By Thirty: The Quickest Path to Early Financial Independence”, written by best selling author Douglas R. Andrew and his twenty-something sons, Emron and Aaron. Douglas Andrew is known for his book series “Missed Fortune”.

The beginning of the book lays the groundwork for sound financial planning. It’s a great encapsulation of what an individual can do to build a strong financial future. One big concept is to “use credit to conserve, not consume”. Another is and the concept of arbitrage in real-life application.

It is the middle and last half of the book that really stands out as unconventional. The book illustrates how you can use real estate mortgage(s) and life insurance to grow your net worth. Many view a mortgage and the cost of life insurance as shackles to growing wealth. The Andrews, however, present these as the key to a building a strong fiscal foundation. There method is likely a concept different than most you’ve heard before (unless you’re already familiar with the “Missed Fortune” series). The Andrews compare the benefits of this tandem approach to other long-term savings vehicles. They end up with a pretty compelling argument.

My only complaint is that the book’s additional online material isn’t yet online.

The book is written in a clear and concise manner. Still, for anyone who is new to some of these concepts it is well-worth owning this book so you can read and reference it multiple times. The book challenged the way I view some expenses (like my student loans). In the end gave me a new way to think about debt. For that alone the book is highly recommended!

GET A COPY! I’ve got 2 copies to give away. I’ll give it to the first two Geezeo users who send me an internal Geez-mail with a link to their group or goal. Make sure to include your mailing address. Good luck!

Discuss these and other books in the Geezeo Group Bookworms Unite.

Do you know how to make money? Could you do better?

Here are five tips to make more money:

1 - Earn more. Here’s how: Go beyond basic expertise in your field. Do all work to the best of your abilities. Deliver more than expected. Treat others with respect. Follow through. Be the kind of person people like to be around. Practicing these habits will position you for more money.

2 - Mix Passion and Purpose. Passion and purpose are critical ingredients. Not all jobs will align with your passion or purpose. Find one that will. Work a job that doesn’t until you’re able to make the switch. Keep passion and purpose a goal. As they say, “the money will follow”.

3 - Financial education. Make it a priority. It’s not what you make, it’s what you keep. An increase in money won’t matter unless you’re already practicing sound money management. Some good financial habits: saving or investing 10% of your take-home pay, living below your means, and paying off credit card debt. Here are six bad habits to quit immediately!

4 - Expand your skills. New skills keep your mind sharp. They also provide a competitive advantage in the marketplace. Plus, the more you know about a variety of topics the more you can relate to others. That directly plays into #1, “be the kind of person others like to be around”. Expand your experiences.

5 - Check your attitude. It’s really easy to complain. It’s more fruitful to look on the bright side. You attract more money-making possibilities when your mind is open and your attitude is good. Believe in your ability to control and grow your finances — and you will.

Who wants to be a millionaire? Just about everybody. But only a small percentage of people ever get there. You’ll find out why in Seth Godin’s book ‘The Dip’, a fabulous read for entrepreneurs and intrapeneurs. ‘The Dip’ is written from a business perspective but the concepts Godin writes about can be applied to any area of your life to help you stay motivated and focused on your goals. A Dip can occur in business, relationships, a fitness routine, a diet, school, your career, and your finances.

The Dip is the place we all reach when our project, job, or relationship stops being fun and we can no longer coast forward on the energy of enthusiasm. The Dip is when it’s time to dig deep and work through the pain or boredom so we can reach the goals we’ve set for ourselves. The Dip is the point in time we are most likely to quit the journey. Although, according to Godin, quitting is a good thing if we learn to quit the right things at the right time.

He also talks about the dreaded Cul-de-sac. You’re in a Cul-de-sac when you work very hard only to end up in the same place again and again.

So what kinds of Dips do we face when trying to reach our financial goals? What’s the difference between those who beat the Dip and those who end up in a financial Cul-de-sac? And when is it a good idea to quit your current strategy when it comes to managing your money?

Clearly for most Americans living within our means is hard. If it was easy then the national savings rate would be high and 60% of us wouldn’t have credit card debt. Putting together a plan to save money and get out of debt can feel exciting and empowering in the beginning. Once reality sinks in though, reaching your goal can feel like chipping away at a glacier with an ice pick. That feeling of overwhelm is what makes us vulnerable to giving up. In fact there are whole industries built around telling you to spend more than you’ve earned. We’ve been very conditioned to think that whatever our problem, spending is the answer.

Beating the Dip financially means keeping your mind focused on a larger goal and avoiding behaviors that will put you in the Cul-de-sac. Have you ever rewarded yourself for saving with a new gadget or expensive shoes? Think it’s alright to charge a few things here and there since your balances are low again? If you answered yes to either then you might be on your way to a house in the Cul-de-sac. Assuming of course you can afford one.

Did you make a bad investment or a dumb move with your credit? Have the courage to face that and quit before it costs you too much. According to Godin, quitting when you’re on the wrong path allows you to free up time and money for finding the right path. If you know you’ve landed in a Cul-de-sac then quitting is absolutely vital. The critical lesson of the book however is recognizing when you’re in a Dip and not letting the pressure cause you to quit something of value. If you can keep the big picture in mind and not be distracted by temptation or ego then you can eventually achieve your goals, financial and otherwise.

Being a Geezeo user already gives you an edge over those who haven’t chosen to make their money a priority. We’ve got free tools and a whole community of people to help you get through your Dip. And we’ll all be here to applaud you on your first million so don’t quit!

Commit to your financial goals! Declare and share on the Geezeo goals page.

“…every single human being will have to employ business principles on a regular basis.”

You can’t fault us for being curious about millionaires. How do you become a millionaire, anyway? We were delighted to speak to a young, self-made millionaire and author named Alan Corey.

Now meet Robyn Collins. She had a simple yet brilliant concept. Ready? Why not just ASK millionaires exactly how they did it? This is the foundation of her magazine “Millionaire Blueprints - Teen”. As the name implies the magazine is aimed at teenagers. Like it’s parent publication “Millionaire Blueprints”, it maps out the precise steps others have taken to reach millionaire status.

Robyn, you have a mission to make as many young millionaires as possible — how did this begin?

We realized that teens were not being taught business or financial principles in schools (for the most part). Thousands of dollars and hours are invested in sports and other extracurriculars by individual families, most of which will not be carried into adulthood; while every single human being will have to employ business principles on a regular basis. It seemed tragic to us that the future leaders of our country were not being prepared for success. It was something we could not keep from doing. We want to be sharing their blueprints next.

What advantages do teens and young adults have over others when it comes to building a million-dollar empire?

They have the distinct advantage of having little or no overheard or personal expenses, they haven’t accrued a lifetime’s worth of debt from financial mistakes and maybe most importantly, they have massive built-in social networks. Through schools, clubs and associations, not to mention the endless availability of social networking options, their reach is the widest it may ever be, if they learn how to work it to their advantage.

You produce the magazine “Millionaire Blueprints: Teen”. How does this magazine align with the goals of the parent magazine, “Millionaire Blueprints”?

Both magazines are written as step-by-step instruction guides, following the path of an already successful millionaires. The difference is that those profiled in the teen magazine made their first million in their teens. In both magazines we stay true to our goal of equipping people for their own millionaire status with the inclusion of resources. If you read a story about a guy with a t-shirt company that made millions, you’re also going to have the contact info of his suppliers, his distribution choices, his lawyers, his accountants… everything you need to get started in whatever business we just profiled.

Tell us a little about your book, “Prepare to be a Teenage Millionaire”, hitting stores now?

It’s a collection of the success blueprints of 7 different millionaires. The magazine typically will profile 2, or 3 at the most, these are called “Blueprints”, the step-by-step methods they used. In the book, you get 7 of these blueprints, and it is also infused with helpful articles, like how to trademark something, 15 steps to attaining venture capital, you get the drift… things that will actually help people be successful.

What was the most surprising thing you learned from the young millionaires you profiled?

The most surprising thing was how willing to share their knowledge each young millionaire was. They truly, honestly wanted to teach people how to do what they’ve done. And maybe that Ben Cathers [featured teen millionaire] loves the Smashing Pumpkins so freaking much!

Where can we get your book or magazine?

You can get Millionaire Blueprints at Barnes and Noble, and most grocery stores across the nation.
You can subscribe to Millionaire Blueprints Teen at www.mbteen.com.You can purchase both books: Prepare to Be a Millionaire and Prepare to Be a Teen Millionaire at Barnes and Noble, amazon.com, Border’s and at www.preparetobeamillionaire.com and www.preparetobeateenmillionaire.com

Wow, great resources, Robyn! Thanks for taking the time to speak with us.

For the parents out there: I bet the cost of the subscription or Robyn’s book is a small investment in Junior’s ability to take care of you in later life, haha! And for the rest of us… it’s never too late to be a teen millionaire…even if you’re on the other side of 30. It’s all attitude and diligently pursuing goals.

Find young-at-heart millionaires-in-training in the Geezeo Goals section.

“First thing I did was buy a Playstation.”

Are video games just for kids? Of course not! But how do video games play into a strategy to be a millionaire by age thirty? This, I had to know…

Lucky for me, I had a chance to chat and laugh with Alan Corey. He’s not your typical 30-something. He’s an investor, comedy writer, and speaker. And oh yeah… he made a million bucks by the age of 30 and wrote a book about how you can, too. It’s appropriately titled, “A Million Bucks by 30″. How did Alan move from Atlanta to New York City and amass this kind of cash on an entry-level salary? How did he think and act differently from most of us? Check it out - you won’t be disappointed.

Alan, dude, you made it! How long have you been working on your goal to be a millionaire? What made you start?

I started at the age of 22 and amazingly enough it took me 6 years. Basically, I had a problem with authority, I really hated getting out of bed in the morning, and I wanted to improve my dismal dating life. I figured if I had a million dollars at a young age, it would help with all that. So I made it a goal of mine and with a bit of financial OCD, I luckily made it happen.

So, I’ve already heard about your “umbrella recycling” theory. What other ways did you manage to live like a king while investing 61% of your salary? (Readers take note: Alan was making $40K and living in uber-expensive New York City!)

I lived more like the king of the poorest nation on Earth. It was great - long periods of starvation, hardly any income, and prone to corruption. To maintain that awesome lifestyle I did things like going to “Fresh Baked” bakeries that throw their day-old goods in the trash right before closing and I’d be there to get them for free. Or I would be a market research guinea pig and fill out surveys for beer money. Anything to earn as much as I could, spend as little as I could, and not sacrifice my social life at the same time.

What I think is cool about your success is that you had to make a series of decisions to think differently from the crowd. Can you give us some examples where your behavior deviated from what you see as “the norm”? How did people react?

Sure, I lwas a landlord at 23. I owned two properties at 24. And just learned on the job. It was a bit overwhelming at first, but then it got easier over time and it just went from there. Basically college life was so much fun that I wanted to continue that lifestyle. So I saved as much as I could, bought a multi-family building, and moved in my friends. It was like Real World - Brooklyn. And just like with my college experience, many nights it was cheap beer, video games, and never getting laid.

What’s the best way to keep your “eye on the prize”?

Write it down, tell other people and make your goals known. Your site is excellent for that. Having that outside encouragement is great. Also I’ve heard writing your ambitions with a Sharpie directly onto your eyeballs is a good reminder too. Remember to write it backwards though, not what you see in the mirror. Otherwise you might accidently be focused on losing a million dollars. My good friend Pickpocket Steve learned that the hard way.

Were there ever times when you felt so far away from the goal that you wanted to give up, or blow the money you’d accumulated so far? Or, did the satisfaction of seeing your hard work, sacrifice, and dedication keep you going?

Yeah, of course there are weak moments. But then you look around and say, “Yeah, this sucks. But if I do this for 2 more years I’ll be a millionaire.” But most of the time I made everything a game to make it enjoyable. I made up a game called Mailbox Roulette where I would try to make sure each time I checked the mail that I had more paychecks in there than bills. Winning that for the first time was pure euphoria. It doesn’t take me much to get excited. I also get that excited watching the non-working group in dog shows.

Can you tell us about your first major investment? What were the obstacles, and how this made you feel when you successfully accomplished it?

First thing I did was buy a Playstation. Seriously. I figured if I had an entertainment alternative I would have second thoughts of taking a cab to see some band I’ve never heard of, paying an absurd cover charge, and then finding money to drink enough beer until I enjoyed the show. It gave me an out. That $300 spent probably saved me thousands over a course of a few years.

What’s been the best part of reaching your goal?

Helping others, freedom from authority, and sleeping till noon. Or maybe dating.

What’s the most outlandish or creative thing you did in pursuit of your goal?

I made up a music review magazine to get on a press list so I could see Outkast for free. The show was amazing! I’m still working on publishing that first issue. Any year now.

Finally, where can we get our hands on your book or see you in person??

Every bookstore should have it, and if they don’t have it, please request the bookstore to order 40 copies and then demand them to put it in the front of the store or on the “Staff Recommend” shelves, and maybe a few even next to the cash registers for those impulse buyers. Make sure they also order enough to displace all the other financial books anywhere else in the store. Then the next person that comes in won’t have the same problems you had. Ghandi taught me that, it’s called “be the change you want to see in the world.”

To see me in person, I would recommend my book signings rather than my front stoop. You can find that information on my website which I’ve named after a very handsome man. It’s at www.alancorey.com.

Ha! Thanks, Alan. Your book is hilarious and I wish you a lot of success (you guys can check out the first chapter at his website!). Let us know if any of the attractive ladies here at Geezeo ask you out and we’ll do a follow-up.

To see what Alan’s been doing with comedy, check out his involvement with Improv Anywhere skit, “No Pants Transit Day” at his blog.

Finally, check out what Alan says of Geezeo, when asked at his site about tools to use:

Lastly, if you are looking for something really cool online, I just got contacted by a really zippy website that I wish was around when I started out 7 years ago. It’s called Geezeo, and it’s like Facebook meets Quicken Online. You can set and see other people’s goals and you can also get the guilt of money off your chest in the confessional room. Basically it’s a free why to stay on top of finances in an interesting environment with like-minded peeps who are computer savvy (i.e. under 35).

‘Nuff said!

I’m no actor, but last night I debuted on Broadway.

Okay, it was Off-Broadway. But still: it was in Times Square, on a legitimate stage, by that I mean one requiring me to keep all my clothes on. To me, that qualifies. (And hey, sigh of relief!)

So what was I doing on stage? Well, I was getting a hair cut. Yes. As part of the show.

(”Oh,” I hear you say, “those crazy artsy-fartsy types! Who pays to watch someone else get a hair cut? Some freaky fetish types?”).

Uh… well… maybe. Actually, my friend produced the show, a combination of musical/dance/hair care/live hair cuts kinda thing. You know: mixed genre. Post-modern. Third wall is a barber chair…

Now, the reason I bring it up is that being frugal doesn’t necessarily mean you have to settle for boring. I’ve been delighted to find that being frugal and stretching your dollars can be a creative pursuit. You have to find or create opportunities and creativity can be key.

So, when my friend called and said, “Do you want to be part of my show, and in the process get a free hair cut?”, I said, “Hell, yes!”.

Sometimes, stretching a dollar means you have to stretch, too, and get outside your comfort zone. In this example, I had to agree to be on stage (eek!). I also had to let this uber-stylist cut my hair while toe-tapping and singing. And you know, TRUST that scissors wouldn’t pierce my eyeballs or that I would walk away with a moussed-up disaster after a public embarrassment.

I’m happy to report that I love my new haircut and had a great time in the process. Free champagne didn’t hurt, either. (SuperCuts never gives me booze. Hello? SuperCuts: paradigm-changing idea… turn Tuesdays into “booze and buzz cuts, booze and bobs” day!)

We are all guilty of spending money because we’re too lazy to do something. And we are all guilty of wasting money on frivolous items. Yet, with a little effort, some creativity, and a willingness to try something new often there are ways to get just about anything you need or want. And sometimes, it can be more fun than the usual option.

Now… lets hope the show runs long enough for me to get another hair cut!

Join me as we discuss rich living on a budget and creative finance over at the Millionaire Artist group.

Partly due to the great success of the Web Innovators Conference - we’ve been spending a fair amount of time with other entrepreneurs in the Boston area. We compare notes on everything from product plans to target markets to fund raising campaigns. We’ve spent the most time with Matt Douglas and Sean Conta, the co-founders of MyPunchBowl. It’s been fantastic - they are local, aggressive, have a great product - and we all feed off each other well.

Once we told Matt that one of our minimum success criteria for year 1 is 75,000 registered users - he put the challenge out there. He didn’t think we could do it. Pete took him up on the challenge - and they each threw up a buck! Trust me - the bragging rights are much more important than the dollar.

We look forward to crushing that target! Help us get there. Drop us a line and let us know what features are most important to you… “Real” Money saving strategies? Educational content? budgeting tools? goal sharing? others???

Consider the disturbing parallels:

10. Everyone who hasn’t done it claims to have done it.

9. You can do a budget in your parent’s basement, the backseat of a car, or in the llama shed at a 4-H fair.

8. Your first budget will be so bad that it will probably only last five seconds.

7. In both pursuits its difficult to decide where the underwear go.

6. Chances are good that no one taught you how.

5. Its nothing like what you see in the movies. For starters, you rarely see people in movies making budgets. Those people lead fictional lives and are also better looking than you.

4. Both pursuits can make you sweaty and nervous.

3. Likely there will be a time when one or the other is all you think about.

2. Sometimes the internet can help ease the pain.

And the number one reason why making a budget is like losing your virginity:

1. You don’t want anyone to walk in unexpectedly. Particularly your mother.

—

The Millionaire Artist tries to budget at least three times a week. Otherwise she gets cranky. Once, she did it on a plane. Or at least, this is the part she confessed to her priest. © Katie/Millionaire Artist, 2007.

Hello Geezeo Readers!

Let’s get right to the point. The first step in conquering credit cards requires a simple self-assessment.

What kind of credit card holder are you?

It might come to a surprise to discover that credit agencies rate you. Yep! Oh, sure, you say, I know that.

Oh, really? Then you must have noticed those folks from the credit bureaus parked outside your window in their beat-up Chrysler LeBaron watching you with binoculars. Sometimes they eat sandwiches. Sometimes they smoke. How else do they know so much about you?

So, the first line of defense is to discover into which of the three categories they’ve pegged you:

Category A:
In the industry these folks are called “Class A” (aka, “A**holes”). Class A folks carefully budget their spending and pay their entire balance in full every single month. They get off on collecting points and redeeming cash rewards. They play the credit card companies at their own game. Jerks!

Are you a Category A credit card holder?
Check any/all that apply:

[ ] You suspect everyone hates you.
[ ] Your name is Norman and “Golly, I love being an accountant!”
[ ] You’ve ever said: “I can eat anything I want and never gain weight!”, or “Somebody, please, stop me from having all this fantastic sex!”. Because if so, clearly everyone does hate you.

Category B:
According to the credit card companies, Category B people are “B for Best”. These people charge up their cards. Like little furry sheep they pay the minimum balance each month. Furry, because they get sheared every single month. Sometimes they pay off the cards. But then they just run them up again. They are the best!

Are you a Category B credit card holder?
Check any/all that apply:

[ ] Where exactly can I buy this crazy fantastic sex, and do you take Visa, Mastercard, or AMEX?
[ ] I’d pay all my cards off. But I’d feel guilty. After all, shouldn’t every child have a vacation to Turks and Caicos on private jet? I’m sending my payments to make damn sure the president of my credit card can send his kids there.
[ ] I just love bills. No, seriously. I just love them.

Category C:
Category C individuals are reckless. Initially, the credit card companies love them. Ohh, they love you like a man in a cheap suit with quarters already deposited in a pay-by-the-minute vibrating bed.

Then they start to fear you’ll file bankruptcy. Oh, hell no! They will NOT be left holding your bag of worthless crap purchases. Oh, hell no! They are not going to let you buy all that crap at Spencer’s Gifts and not pay for it! Oh, hell no!

They get very, very mad. For Chrissakes, they’ve been tailing you’re ass to the mall in a LeBaron! You owe them!

Are you a Category C credit card holder?
Check any/all that apply:

[ ] No one here by that name.
[ ] Stop calling me.
[ ] I said, stop calling me!
[ ] You &%^ &%)$(*# stop calling me!

Good. Now you know what kind of credit card holder you are. That’s the first step.

Someday, you can be a proud member of Group A. You, too, will know the deep satisfaction of quietly judging the members of Groups B & C. No one likes an A**hole, but no one likes to pay interest and surcharges, either. Maybe you’ll decide to get out the game entirely and use credit for something better than credit cards.

Until next time, pull the blinds. They’re watching. Don’t give them any cheap thrills.

The Millionaire Artist isn’t qualified to give financial advice. Frankly, there’s little she is qualified to do. Thank goodness she keeps blog. © Katie/Millionaire Artist, 2007.