Money Saving Tips and Budgeting Resources Harvard Law School 1
Today s Goal: PROVIDE RESOURCES YOU WILL FIND USEFUL!!
Why Budget? Understand your spending priorities Establish and maintain a good credit history, use credit wisely, and pay your bills on time Plan for the future Being in school may be a time of non-growth for you and yet there are options available to reduce borrowing which is a form of future growth! 3
Current Financial Objectives Make the most of your Harvard experience Minimize expenses / grad school debt Develop good habits Minimizing debt now is maximizing savings later Align current expenses with future capacity to pay
Future Financial Objectives Salary will need to support: Retirement savings [401(k)] Taxes Student Loans Home Loans Food / Clothes / Entertainment Travel / Vacation Other Savings (if you don t save, who will?) Insurances (health, auto, home, life, etc) Understanding your personal budget is key!
Compounding Rate 8% Age 2,000 5,000 Saving Is Important - Retirement (401(k) - Purchases (car, house, etc) - Maintenance (paint, appliances, etc) - Emergencies (3-6 months?) - Other (kids, college, vacations, etc) 20 2,000 21 4,160 22 6,493 23 9,012 24 11,733 25 14,672 26 17,846 27 21,273 28 24,975 29 28,973 30 33,291 5,000 31 37,954 10,400 32 42,991 16,232 33 48,430 22,531 34 54,304 29,333 35 60,649 36,680 36 67,500 44,614 37 74,900 53,183 38 82,893 62,438 39 91,524 72,433 40 100,846 83,227 41 110,914 94,886 42 121,787 107,476 43 133,530 121,075 44 146,212 135,761 45 159,909 151,621 46 174,702 168,751 47 190,678 187,251 48 207,932 207,231
Spending Be mindful of what you re buying and why Comparison shop Don t use credit cards to extend your monthly budget avoid charging more than you can afford to repay in full each month, except for emergencies be wary of opening new credit accounts for a one-time purchase discount cancel stale credit accounts but don t remove them from your credit history if you re using credit to extend your budget, you re not using your budget get a copy of your credit report at least once a year from one of the national credit reporting agencies 7
Free Financial Fitness Sites HLS Specific Login from SFS home page: law.harvard.edu/current/sfs Register and take modules 1 and 2 Budget worksheet available for download Log in from your school s SFS site Register for Money 101 Keep track of your borrowing and get tips for organizing all your debt 8
Workshops and inhouse resources Check with your specific Financial Aid office Individual appointments Group workshops Online resources Monday, October 5th 12-1:00: HSDM Auditorium Student Loan Management 12-1:00: WCC 1015 US Finances for International Students 1:00-2:00: WCC 1010 Money Saving Tips 6:00-7:00: Sever 102 Outside Scholarship Searches Tuesday, October 6th 12-1:00: Andover Hall, Sperry Room, HDS Student Loan Management 12-1:00: Webinar Money Management Webinar 1:00-2:00: WCC 3019 Credit Basics Wednesday, October 7th 12-1:00: Kresge G1 (HSPH) Identity Theft & Credit Repair 1:00-2:00: Larsen 203 Understanding Your Bottom Line Thursday, October 8th 12-1:00: Forum Room, Lamont Library Student to Student: Personal Finance Help 1:00-2:00: Forum Room, Lamont Library Finding a Student Job at Harvard Friday, October 9th 12-1:30: WCC 3019 Investing I 12-1:30: Andover Hall, Sperry Room, HDS Credit & Credit Scoring 2:00-4:00: Outside Science Center Stress Relief with Dog B.O.N.E.S 9
Budgeting Worksheet Dynamic by design Can be used and edited Has helpful links to the information you need Termbill Borrowing summary Loan terms Use what you learn to make informed decisions Recognize what s hard, what s easy Commit to actually using a budget 10
How to stay in the BLACK while at school raise your income cut your costs identify essentials and non-essentials Employment Resident Tutor / Resident Assistant Research Assistant Board of Student Advisors Non-Resident Tutor Summer employment Non-HLS academic-year job Where you Shop Shaw s in Porter vs. convenience Stores on Mass. Ave. vs. Market Basket on Somerville Avenue Where you live Cambridge vs. Somerville/Watertown/Arlington/Allston/Brighton Find one or more roommates to share a place Harvard Affiliated Housing is not subsidized, and it s not cheap; you can probably do better on the private housing market Sublet your place if you ll be gone during the summer 11
Cutting costs Switch to basic cable Cancel a magazine you don t read Use the Harvard gyms Coupon savings (incl. receipts) EBay and Craigslist sales Bring your lunch or look for a free one Freecycle 12
Our Tips Groceries, Dining Out Entertainment / Museums/Local Activities Transportation / Travel Clothing/Furniture General Tips avoid impulse purchases and beware of buying for convenience a little planning can save a lot shop with a list if it s not on the list, don t buy it make your own meals, pack lunches, cook for friends (and then let them cook for you) rent or share videos/dvds or borrow from the public library instead of going to movies treat yourself every once in a while it s ok! 13
Blogs and Websites Great sites Find yours and go to it everyday! https://www.washingtonpost.com/people/michelle-singletary http://www.uwlax.edu/it-makes-cents/ http://choosetosave.org/ http://www.frugalwoods.com/ http://www.360financialliteracy.org/calculators/student-budget www.cleverdude.com 14
Online Tools Basics: www.fool.com/how-to-invest/personal-finance/index.aspx Calculators: www.dinkytown.com www.calcxml.com Money Management: www.mint.com www.yodlee.com Financial Planners: www.napfa.com find a fee-only financial planner 15